Yes, it is that time again, French local taxes will go up in 2016
The French government has established that the rental value of real estate called La valeur locative in French has grown by one percent. This increase is important since it is what is used to calculate two taxes that impact French real estate owners and renters. The two taxes in question are Taxe d’habitation and Taxe foncière.
This tax impacts developed and undeveloped French real estate. In a time when many French owners are tight with money they now have an increased expense. This expense is essentially to cover a loss of money that local areas no longer receive from the main government of France.
Taxe d’habitation = Valeur locative cadastrale de l’habitation et de ses dépendances – abattements obligatoires pour charge de famille x le taux voté par la commune ou l’intercommunalité. The current google translation of this is : Residential tax = cadastral rental value of the house and its outbuildings – mandatory deductions for dependents x the rate enacted by the municipality or intermunicipal.
Taxe foncière = Taux voté par les collectivités territoriales x la valeur locative du logement – 20% pour compenser les frais et charges du propriétaire de terrain non bâtis et 50 % pour les propriétés bâties. The current google translation of this is” Property Tax = tax rate voted by the local authorities x the rental value of housing – 20% to compensate for the fees and expenses of undeveloped land owner and 50% for developed properties.
As an owner you can check with your local government office for more details. As a French real estate buyer check with the local government office and ask also for copies of these tax papers from the current owner before making an offer to purchase the property.
If you care looking for an English speaking French real estate agent to help you we can help you find one contact us here. We guide you at no charge.
