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The two taxes, the housing tax and the property tax, are quite distinct, but both are paid to the benefit of the communes.
- Council tax
Collected for local authorities, this tax is imposed on the occupier of a property (main or secondary house) on January 1st of each taxation year.
It is calculated based on the gross rental value, annually revalued and adjusted by a coefficient voted by the Parliament.
Exemption
- People over 60 years old
- Widows/widowers
- Holders of the solidarity allowance for elderly people
- Holders of disabled adults allowance (subject to three options).
Allowances
Allowance for family is a mandatory, applied in accordance with the composition of the housing members :
- 10% of the average rental value for each of the first two dependents of the tax household
- 15% for each additional person
General allowance depending on municipalities : from 1% to 15%
Allowance for people with modest income: from 1% to 15%
Allowance for disabled people: 10%
- Increase of 20% possible for the secondary residences of some communes.
- Payment deadline: mid-November
Article 1414 C-I-2 and 1414 C-I-3 of the French Tax Code related to the automatic reduction of the residence tax is charged to the principal residence.
By 2020, 80% of the population will be released from the housing tax.
An allowance of 30% and then 65% will be capped on the TH contribution in 2018 and 2019.
The households affected by this tax relief are those whose resources do not exceed € 27,000 of Tax Revenue Reference (RFR).
The reform includes taking into account the sum of the RTS in order to calculate the fee for each household or cohabitant occupying the premises as their principal residence.
The people eligible for this relief are the elderly who retain the enjoyment of their main home. However, are not concerned by this relief, taxpayers to pay the current property tax estate.
New
The cost of the rebates will be borne by the State on the basis of the rates and allowances in force for the current year’s charges. This constitutes a resource base for local authorities.
A Habitation Tax simulator has been posted on impots.gouv.fr.
Regarding the revaluation of the rental value of business premises subject to the housing tax, Article 34 of the amended Finance Act No. 2010-1658 provided for the implementation of the revision of the rental values of business premises from 2017 taxes.
However, this revaluation will not be effective until 2018.
- Property tax
This tax applies to built and undeveloped properties. It is equal to 50% of the rental value of the property and is due by the owner.
This value is determined from a municipal tariff referring to rents.
In France, the property tax is a local tax, due by all owners of real estate.
Licence fee
The property tax is a tax due only by the owners. It individuals, companies or legal persons.
The property tax is due to the owners of property:
- to be built property: for professional use or for residential use;
- to be undeveloped property: mines, ponds, rural lands, … etc ..
Calculation
The owners of the property tax were each year on the 1st of January of the year on the basis of the built or undeveloped property tax. The tax calculation to determine the chargeable rate hangs in account:
- The cadastral rental value of the property
- The revaluation coefficient
Exemption
On the main residence:
- Persons over 75 years of age as of January 1 of the tax year
- Holders of the solidarity allowance
- Holders of the supplementary disability allowance
Holders of the allowance for disabled adults.
No rebate or increase for the property tax.
Deadline for payment: mid-October
Taxation on rental income
Reputable property income of buildings, such as house, apartment, store, office, rural building …
These incomes are subject to a tax that can be determined according to two plans:
- Furnished locations: micro enterprise plan (BIC) or real scheme
- Empty locations: micro-land regime or real regime
New housing
New dwellings (primary and secondary residence) are exempt from the property tax for two years. From the 1st of January of the year following that of the completion of the new dwelling.
Low-income seniors
Holders of the allowance for adults with disabilities, whose income threshold for 2017 does not exceed € 10,815 for the first part of the family quotient and € 2,888 for each additional half-share. These must occupy the dwelling.
When a person is over 65 years of age and under 75 years of age and fulfills the same living and income conditions as those mentioned above, he / she receives a reduction of one hundred euros on the basis of the property tax which it is indebted.
Taxation of property income
There are two tax regimes for land revenue: the micro-land and the real.
Regarding the micro-land system, the amount of property income must be less than € 15,000. The taxpayer will benefit from a tax deduction of 30% on his tax base. The remaining 70% will be subject to the income tax schedule.
As for the so-called real estate regime, property income must be greater than 15,000 euros. The taxpayer will have to wait three years before he can change his tax system, if he wishes.
Real Estate and flat tax
Income tax property is not affected by the direct debit flat fee (PFU), also known as flat tax.