Tous les impôts liés à l’immobilier
In any property transaction in France, the impact of taxes is by no means negligible. As a homeowner, you must pay a number of taxes, fees, and deductibles. Here’s what you need to know before embarking on a deal.
Payable every November by all real estate owners, even if the property is empty or rented out. In the event of a sale, it’s the owner on 1 January of the year that pays. Negotiations between purchaser and seller may result in this sum being split between the two “prorata temporis”.
Tax on income generated by property
If you receive rental income you must pay a property tax on this alongside your income tax.
Tax on empty residences
This tax affects owners of properties that have been unoccupied for more than a year on 1 January of the tax year in question. A residence that is occupied for less than 90 days a year is considered vacant by the tax authorities.
The tax rate varies according to the duration of time the residence has been empty: 12.5% of the property’s rental value the first vacant year, increasing to 25% the second year.
Tax on small spaces
This tax affects owners of “handkerchief” properties in Paris (surface area of 9m2 to 14m2) when the rent charged exceeds €41.37/m2/month (in 2015). This tax may vary by 10-40%.
Tax on capital gains
When you sell a vacant property as your principal residence the capital gains are taxed at 19% plus 15.5% social contributions (non-residents are exempt from this). There is a sliding scale that provides tax relief according to the number of years you have owned the property. After 22 years of ownership, no tax is imposed on the capital gains. After 30 years of ownership, the social contributions (15.5%) associated with capital gains are no longer deductible.
There is a super-tax on capital gains that exceed €50,000. This fluctuates between 2-6% according to the total amount of taxable capital gains.