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TAXES

Who will have to pay France’s household tax this year?

The French taxe d'habitation - the householders' tax - has recently undergone a series of changes that have seen it scrapped entirely for many people. So who still has to pay it?

Published: 16 July 2020 12:13 CEST
Who will have to pay France's household tax this year?
Photo: AFP

There are two main types of property tax in France, taxe foncière which is paid by the building owner and taxe d'habitation which is paid by the person who lives in the building.

And it's the taxe d'habitation that has been undergoing a gradual phasing out over the last three years, leaving many people liable to pay nothing at all.

The original plan was to phase it out completely by 2023, but President Emmanuel Macron has now said that, due to the unprecedented economic situation caused by the pandemic and lockdown, some people could continue to pay it for the foreseeable future.

So who will pay the tax, which falls due in the autumn, in 2020?

READ ALSO The French tax calendar for 2020: What taxes are due and when?

Well firstly second home owners still have to pay it. And as property owners you also have to pay the taxe foncière, which in some areas has seen a sharp increase.

For people living in their primary (or only) residence, taxe d'habitation is now means tested, with only the higher earners still obliged to pay.

But the cut-off point for this is actually quite low, so it's far from only the super-rich who will be paying this.

For this year's bills, only the people who are in the top 20 percent of France's income bracket will receive a bill.

According to French national statistics body INSEE this works out as;

For a single person – an income of €27,706 or more per year

For a couple with no children or one child – an income of €44,124 or more

For a couple with more than one child – an income of €56,438 or more 

The median income level in France is €1,692 per month (or €20,300 per year) and half of the households receive less than this amount in annual income from salaries, pensions or benefits.

The 10 percent of people in the lowest income bracket have an annual income of €10,860  (€905 per month).

Member comments

  1. So how are we actually informed that we have to pay the taxe d’habitation ? Should I be watching out for a letter ?

  2. Hi, I am English & have lived in France for 18 years now, last year 2019 I sold my house in Alloue & paid my taxes Fonciere & Habitation at theat address, in 2018 I bought a house In Saint Maurice des Lions required renovations, I have also have paid both the taxes on this house, I did live in this house in January 2019 & did not movre here until September 2019 as the completion on the Sale of the Allouse was delayed due UK buyers problems. Did I have to pay both of taxes ? I am 73 years old, retired & get my pensions from the UK & the annual amount has been approx €18.000-19000 depending on the exchange rates, I complete my Income tax declaration online in France. I will I have to pay tax Habitation for 2020. Regards April

  3. I am incredibly annoyed with my local authority who have sent me no bills since I moved here in late 2016. Last year they took €91 out of my bank account without any notice as punishment for not paying the taxe foncière they said I should have paid starting August 2018. But having had no bill, no letter, no email, no phone call how am I supposed to know I am supposed to pay? Again the same has happened this year in spite of my paying something monthly for the last 10 months I’ve just had another bill telling me I have to pay by October or else. Well I don’t have €1200 going spare and in spite of my offering to pay monthly and demanding why no bill was sent I am facing brick walls as if I chose not to pay any bills I am aware of! Do I have any recourse ! I’m 72 live alone in a pension that has dropped almost €2000 a year since Brexit but haven’t stopped paying any of my bills. This lack of empathy or understanding goes against the welcome I’ve had from every other quarter here in France.

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PROPERTY

How to ensure your French property is insured for storm damage

Storm Ciaran’s property-wrecking passage through France - with another storm forecast for the weekend - may have many people wondering how comprehensive their insurance cover is. 

Published: 3 November 2023 15:45 CET
How to ensure your French property is insured for storm damage

In the wake of Storm Ciaran, thousands of property owners in France are preparing insurance claims – with initial estimates of the bill for damage between €370 million and €480 million.

Home insurance is compulsory in France, whether you own the property you live in or you rent – and it must include some level of storm damage cover. 

Check also to see if your insurance provides cover in case of a declaration of a catastrophe naturelle.

The garantie tempête (storm guarantee) covers damage caused by violent winds. What constitutes a ‘violent wind’ varies from contract to contract, but there appears to be a widespread consensus of agreement on wind speeds over 100km/h.

In most insurance contracts, this covers damage caused by the storm and within the following 48 hours – so you’re covered if, for example, a tree weakened by the storm comes down within that period and damages your property.

Be aware that, while the storm guarantee automatically covers the main property, it generally only covers any secondary buildings and light constructions – such as a veranda, shed, solar panels, swimming pool or fence – if they are specifically mentioned in the contract. 

The same is true of any cars damaged by debris. A basic insurance contract might not include storm damage, so it is always worth checking.

Damage must be reported to your insurer as quickly as possible. The deadline for making declarations is usually five days after any damage is noticed. This is especially important for second home owners, who may not be at the property when the damage occurs. 

In some cases – such as in the aftermath of Storm Ciaran – insurers may extend the reporting period. But under normal circumstances, it’s five days after the damage has been discovered.

What happens next

To make a claim, the first thing to do is contact your insurer by phone or email. Your insurer will take you through the next steps, but usually you have to send in a declaration – which should include an estimate of any losses and for any repairs, with evidence where possible, such as photographs and any receipts for purchases. 

Your insurer may also request proof of wind intensity, which can be provided for example by a nearby weather station.

The insurance company may appoint an expert to come and assess the damage, so make sure to keep damaged property safe until they arrive, as well as all invoices for any urgent repair work. 

What if you’re a tenant?

If you rent your property, you must report any damage inside the accommodation to your insurer and also notify your landlord so that they can file their own claim. 

In the case of a co-propriete, you must declare damage inside the accommodation to your insurer, while the trustee sends his own declaration to the collective insurance (which sometimes covers the private areas) .

How long does it take for claims to be settled?

Payment of the compensation provided for by the “storm guarantee” depends your home insurance contract. After the insurer has estimated the amount of damage, compensation is generally paid between 10 and 30 days following receipt of the insured’s agreement.

What if we got flooded?

In the case of flooding, you may have to wait for a natural disaster order to be issued. 

Catastrophe naturelle

The ‘state of natural disaster’ is a special procedure that was set up in 1982 so victims of exceptional natural events, such as storms, heavy rain, mudslides and flooding, as well as drought, can be adequately compensated for damage to property.

The government evaluates each area and deems whether it qualifies for the status of catastrophe naturelle (natural disaster). 

Essentially once a zone is declared a natural disaster, victims can claim from a pot of funds created by all insurers. If the zone is not declared a disaster, insurance companies are under no obligation to pay out. 

Under a “state of natural disaster” residents are covered for all those goods and property that are directly damaged by the phenomenon, in this case storms.

It applies to residential or commercial buildings, furniture, vehicles and work equipment that are already covered by insurance policies.

Homes must be already covered by a multi-risk insurance policy for the status of natural disaster to count.

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