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What you need to know about France’s 2024 property tax declaration

If you own property in France, you may need to complete a property tax declaration - here's who needs to do it, how to complete the forms and the 2024 deadlines.

Published: 18 April 2024 14:58 CEST
Updated: 20 April 2024 07:10 CEST

What you need to know about France's 2024 property tax declaration

If you own property in France, you may need to compete the property tax declaration. Photo by PATRICK HERTZOG / AFP

Who

The déclaration d’occupation (property tax declaration) is for everyone who owns property in France, even if you live in another country. It includes people who use their property as their main home, those who use it as a second home and those who rent it out.

It applies to both French people and foreigners.

However, it is not an annual task – if you completed the declaration last year, and if nothing has changed since then, then you have nothing to do this year.

The form concerns property that you owed on January 1st 2024, if you have bought a property since then, you do not need to do the form until next year.

When

The property tax declaration must be completed by 11.59pm on June 30th if you are filing online.

If you are using the paper form, it must arrive at the tax office by July 1st, which means it must be posted no later than June 30th if you are sending it from France, or earlier if you are posting it from overseas. It is advised to send the form by registered mail (lettre recommandé) in order to have proof of when it was sent.

Failure to complete the declaration by the deadline can lead to a fine of €150 per property (although last year several extensions were given to people having trouble with the process).

How

There are two ways to complete the declaration – online or on paper.

For most people, the online option will be easier.

To do this, you first need to request a numéro fiscal (tax number) if you do not already have one, and then use this number to create an account on the tax website impots.gouv.fr – you can find full instructions on how to do that HERE.

If you file an annual income tax declaration in France and already have an account on impots.gouv.fr then you can use the same login for the property tax declaration.

On paper – The property tax declaration was introduced in 2023 and was initially described as an ‘online only’ task – however this year the tax office has made available a paper option for people who either do not have internet access or who are not confident with online procedures.

You can download a copy of the form HERE, or go to your local tax office and ask for one in person. Once completed, the form is returned by mail, or in person to your local tax office.

You will need a numéro fiscal (tax number) even if you are declaring on paper. If you have previously received property tax bills, the number will be on the bill. If you do have a number you will need to request one – this can either be done in person at your local tax office or online – full details HERE.

The form

The déclaration d’occupation itself is one of the shorter and simpler pieces of administration in France.

Online – If you are filing online, go to impots.gouv.fr, click Votre espace particulier in the top right hand corner and then login to your account.

Across the top of the screen will be an option ‘Mes biens immobiliers‘ – click that.

You should then see a list of the properties that you own in France – if you have a house that has outbuildings or a swimming pool, you will notice that the outbuildings and pool are listed separately. This is normal.

Click on the listing for your property which should take you directly to the form. Some details will be pre-filled so you just need to check that they are correct. The form will ask for your personal details and also details of the property such as its size and number of rooms.

These details are used to calculate your tax bill – if there is only a minor anomaly that probably won’t make much difference but there is a significant difference (eg the tax office thinks you have 25 rooms but you actually only have 6) then you should correct this as it can affect your bill.

If you have recently purchased your property you should check that the previous owner registered the details correctly, including a swimming pool if you have one. You can be fined for having an undeclared pool.

Finally the form will ask you what the property is used for – a main residence, a second home or rented out and will also ask for the name of the occupier/s.

If the house is a second home, you list yourself as the occupier, and in the bit that says ‘occupied since’ you put the date when you bought it.

If you rent it out on a long-term lease you will be asked for the names of the tenants who were resident on January 1st or to indicate if the property is empty.

Paper – if you are filing on paper you will not get any pre-filled details and will have to answer all sections yourself. The sections of the form are as described above.

Troubleshooting

If you own the property jointly with another person or persons, then only one of you needs to complete the property tax declaration.

If you own your property through an SCI you may not see it listed on your tax account – full details HERE.

The property tax website generally works well, although it does sometimes crash close to deadlines when it is very busy – if you are having trouble with the site first turn off any adblockers, and then turn off automated translation tools (the site allows you to copy and paste chunks of text into a translation tool in a separate window if you’re struggling with some of the French vocabulary).

If you’re having difficulties, you can visit your local tax office – Google Centre des finances publiques plus the name of your commune to find your local office. You do not need an appointment and can visit on a walk-in basis, but take careful note of the opening hours as not all offices are open five days a week.

Some tax offices in smaller towns cannot deal with property tax queries, but if this is the case they will be able to direct you to the tax office in the your area that can answer your query.

You can also call the tax helpline on 0 809 401 401, or book a telephone appointment by heading to the ‘Contact et redenez-vous’ section on the tax website.

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6 pension questions British people should ask before retiring to France

Retiring to France is a dream for many, but before turning that dream into reality there are some serious financial questions that you need to ask yourself to ensure that your retirement is a financially comfortable one.

For most retirees, their main or only income will be a UK pension, so it’s important that you understand how your pension will work once you make the move.

There are some specific rules and restrictions on taking pensions out of the UK, while there is also the question of how UK pensions interact with the French tax system.

Financial adviser, Maeve Hoffman, from Spectrum IFA Group, emphasised that people should not take these decisions lightly, telling The Local: “Figuring out what to do with your pension should be part of your wider financial plans for your life.

“This may be your most important asset, besides your home, and the best answer for what to do with your pension is highly individual. There are no sweeping generalisations when it comes to advice on private pensions. Everyone’s situation is different,” she said.

This article is intended as an overview of how the system works for UK pensioners and is not intended as a substitute for individual financial advice. The article is aimed at people who have worked most or all of their career in the UK and then intend to retire in France – the situation is slightly different for people who work in France and then retire here.

You can find an overview on French tax rules for pensions HERE.

Long-term or short-term

The first thing you need to carefully consider is whether or not your move to France will be for the long-term or short-term.

When it comes to your UK pension, there are some options that may be advantageous for French residents looking to stay here permanently, but they could make your life very complicated if you end up returning to the UK in the future.

Do not be afraid to ask yourself the tough questions – is there any chance you will have grandchildren in the future that you will want to be geographically close to? Have you ever spent a significant time in France, aside from short holidays? Do you have roots in France, such as friends, family or a home? If your health deteriorates, will you want to be cared for in France or the UK?

If are unsure about the answers to these questions, then take some time to really think about them. There are alternatives to permanently moving to France if you are unsure – for example, you could spend a few months a year here on a short-term visitor’s visa.

Understanding the different tax rules

British retirees should be aware that the UK and France have very different tax systems.

Once you become a tax resident in France, you have to file a yearly declaration, including your global income. The country that gets to tax that income is determined based on the tax treaty between the UK and France, which seeks to eliminate double-taxation.

As for your UK-based pension, the treaty states that if you have a UK government or civil service pension (eg a state school teachers’ pension), then this will remain taxable only in the UK. Some old NHS pensions were considered ‘government pensions’, but modern ones might not be. You can check if your pension is classified as ‘government’ here.

You still have to declare this income to the French tax authorities, but you will not be subject to tax in France on it. That being said, it will count towards your total household income, and could end up pushing you into a higher tax bracket which is something you should carefully consider, particularly if you want to take a large sum at once.

The same is not true of private pensions: these are taxed in France, not the UK, as soon as you become a tax resident here. Confusingly, the UK state pension is also considered a private pension, even though it is paid by the government.

You can find a complete guide to how UK pensions are taxed in France HERE.

As a result, you will want to think about whether your previous plans for your private pension were only advantageous to you as a UK resident. Once you become a French tax resident, they could have unforeseen implications.

You can find more information about tax rates in our tax guide.

Get reliable, expert financial advice before doing anything

If you have decided you want to be in France permanently, then you will need some expert tax and pension advice – but you need to be careful who you take advice from, this is a highly specialist area and it’s unlikely that high street financial advisers will have the knowledge that you need.

Brexit has also made getting financial advice more complicated, with fewer experts available.

Maeve told us: “Because of Brexit, you cannot use a UK-based financial adviser anymore – you have to use an EU-registered one. This has made things more complicated. When picking an adviser, seek out someone who has expertise on the local taxation rules in France. They should also be regulated with the financial regulator where you live and where they work.”

It can be especially complicated to parse out who you can and cannot take advice from – for example, some UK-based advisers have continued to give advice to EU-based clients, even though this can be particularly risky if the investments they recommend do not follow EU regulations.

There are also expat-oriented financial advice services that are located outside of France, but seek to offer tax advice to people in France.

She added: “Be smart and sensible. If you choose an adviser in Dubai or Spain for example, you will now be adding another regulatory organisation into the mix, plus another language.

“There are free, government-based services in the UK that can help you understand your private pension – Pension Wise and Money Helper. Before doing anything, you should consult the free services. Any financial adviser worth their salt would recommend this too.

“These services have begun to have longer wait times, so be sure to book well in advance of when you plan to draw from your pension.”

Deciding whether to transfer your pension

Another question that is important for Brits to think about is whether or not to transfer their pension into either a UK-based SIPP for non-residents, or a QROPS (Qualifying Recognised Overseas Pension Schemes).

The SIPP will keep your pension in the UK, while the QROPS moves it out of the UK, to Malta specifically.

These options can be helpful for French residents, but you need to familiarise yourself with their benefits and drawbacks.

“The QROPS is not for someone who is unsure of their future in France, as if you return to the UK within five years of the pension transfer HMRC will seek their tax back as if it was a full encashment,” Maeve said.

In France, a QROPS is considered a trust, you may also have additional reporting requirements to fill out along with your annual declaration (more info here).

You should beware of scams on this subject, as the post-Brexit period saw many scammers seeking to persuade Brits that it was now mandatory to transfer their UK pension – always be wary of any cold-calling or unsolicited financial advice.

Determining how you will want to draw from your pension

The next question is how you want to receive your pension – either as regular income or as a lump sum. The option that you chose will have tax implications in France.

If you receive it as a regular income, when doing your yearly French tax declaration, you will add up your pension income for that year and you will be taxed at the normal marginal rates for income (the barème). These rates go up to 45 percent (for the highest earners only) plus social charges if they apply (more on this below).

Pension income can also benefit from a 10 percent tax deduction, as long as it does not exceed €4,123 or fall below €422 per household.

Lump-sums are more complicated. Technically, French tax authorities would allow a return of once off pension capital to be taxed at a flat rate of 7.5 percent.

But in reality, Hoffman explained that anyone seeking to do this would need the express, written confirmation from French tax authorities that this rate will be applied.

She also explained that the type of private pension matters when seeking to get the lump-sum flat rate.

“There are plenty of different types of private pensions in the UK, but the old ‘defined benefit schemes’ have been the gold-plated standard. These are the types of pensions that give you a portion of your salary for the rest of your life.

“In principle, you should be able to take out lump-sum of 25 percent of your ‘defined benefit scheme’ pension and be taxed at the 7.5 percent flat-rate. That being said, some people get refused, so you cannot make any assumptions and you need clarification from the French tax office.

“As for all of the other types of private pensions in the UK, like the money purchase or personal pension schemes, these are considered to be ‘funds’. If you want to benefit from the lump-sum then you would have to take out the entire pension. You would not be able to just take out 25 percent and get the lump-sum rate.

“For anyone considering taking their whole pension and seeking to use the 7.5 percent rate there are conditions to be met, so I advise people to write to their French tax office and explain their own situation in detail. Be sure to clarify the tax rate you are seeking to have applied and ask what documents they would need from your UK pension company to confirm that the contributions to this pension have been tax deductible.”

Healthcare and social charges

Deductions in France come in two types – impôts (income taxes) and prélèvements sociaux (social charges).

People who retire to France (and have never worked in France) and have already reached the state pension age can apply for the S1 – this means that the UK continues to pay for their healthcare costs and they would not be charged prélèvements sociaux. Non-working spouses of an S1 holder can also benefit from this.

People who take early retirement and make the move before they reach state pension age may have to pay social charges in addition to taxes until they reach the state pension age and can apply for their S1. However, there are several exemptions to social charges, so even if you expect a bill, you may not end up being charged. More information in our guide.

Social charges help pay for a lot of services from the French government, including access to healthcare. In France, you can access the state healthcare system (and get a carte vitale) after three months of residency.

READ MORE: Why you might get an unexpected French health bill

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