Contents of article "Taxes payable on property purchase"
Taxes payable on property purchase
Taxes payable on property purchase
Land Tax or Property Tax (taxe foncière)
This is an annual charge payable to the council and is due and payable yearly between September and November. There is a two year exemption for newly built properties
Dwelling Tax (Taxe d’habitation)
This is payable to the council by the person or persons LIVING in the property on January 1st of each year. If the house is rented, this tax is the responibility of the tenant.
(If you have more than one property, the taxe d’habitation must be paid in full on all owned and rented properties and any furnished premises, including any outhouses etc (livable in) situated less than 1km from your property. Garages and car parks don’t require taxe d’habitation.
Television licence
Your television licence is included in your taxe d’habitation.
Only one TV licence is necessary if you have more than one residence IN FRANCE.
When you receive your tax bill, there is a box to tick to get a refund if you do not have a television. (However, I am told that it is really difficult to get it back - they tend to ignore your tick!!)
Income Tax (impot sur le revenu)
Any person not resident in France but receiving rental from property (even if the rent is paid in the country of residence) is liable to French income tax. A tax allowance of up to 15000 per year is available.
Capital Gains Tax (plus-value)
This is calculated on the basis of the difference between the sale price and the purchase price (after various additions and subtractions!) It is set at 16% for residents of the EEC.
Inheritance Tax
This depends on the link between th beneficiary and the deceased and it is well worth looking into as French inheritance laws are quite complicated. For example, you cannot disinherit someone who is entitled to your property, even if you don’t like them and don’t want them to have it!
