Taxes on your home

THERE are two types of local taxes in France and you will have to pay them if you buy a property.

Residential tax, or taxe d’habitation, is paid if you own a residential property and use it yourself, or have it available for your use.
This tax is raised by the mairie for the provision of local services and is based on the notional rental value of your property.
It is calculated on the living area of the property, its construction and amenities furthermore the land registry needs to be notified of any improvements within 90 days.
The amount will be calculated by multiplying the rental value by the locally fixed tax rate and is payable by the person occupying the property on January 1.
The other type is property tax, or taxe foncière, which is paid by the owners of a property if it is deemed furnished and habitable.
The tax is split into two parts: tax on buildings (taxe foncière bâtie) and a tax on the land (taxe foncière non bâtie).
New and restored homes are spared property tax for two years from the 1st January following completion of the project; the mairie should be able to help you with this application.
Tax on the land will be payable unless it is being used for agricultural purposes.
Forms for both residential and property tax are sent out by local councils or can be collected from the mairie.
The forms need to be returned by a certain date, you will then receive your bill, which must be paid within a set time frame, or you can face a late payment penalty.
If your property is a second home then this must be stated on the form, as your bill should be reduced accordingly.
Also, it is possible to pay residential tax in ten monthly instalments from a French bank account.