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PROPERTY

Reader question: Will the new property tax declaration mean bigger bills?

People who own property in France face a new task this year - the property tax declaration. But does this mean an increase in their tax bills?

Reader question: Will the new property tax declaration mean bigger bills?
Photo by DENIS CHARLET / AFP

Question: I’m not resident in France but I own property here and have been told that I need to fill in a new property tax declaration, and will need to open an account on the French tax website in order to do so. Does this mean I will have to pay extra taxes?

This question relates to the Déclaration d’occupation which applies to everyone who owns property in France (including second-home owners who do not live in France) – a one-off declaration that is a new requirement this year. All property owners are required to state whether their property is their main home or a second home.

For those living in France this is pretty straightforward as they will likely already have an online tax account, and can complete the whole process in a couple of clicks – full details here.

Second-home owners may not have a tax account so will have to set one up – find instructions on how to do that here.

Property tax declaration – your questions answered

But will setting up the account lead to paying more taxes?

A little disclaimer here, we are in no way a spokesman for the French tax office and have no knowledge of any future plans that might be being hatched at the finance ministry. We can only go on the current, publicly available information about the property tax declaration.

The stated aim of this is simple – to ensure that the tax office has an up-to-date record of whether a property is used as a main residence or a second home.

The reason for this is changes to the tax system – taxe d’habitation (the householders’ tax) is being gradually phased out for everyone apart from high earners and second-home owners. The tax office therefore needs to know whether a property is a main home or a second home so that it knows whether to send out a taxe d’habitation bill or not.

Taxe foncière (the property owners’ tax) remains in place, so second-home owners will continue to pay both taxe foncière and taxe d’habitation.

So will registering for an online tax account make a difference to your property tax bill? No, property taxes are decided based on a range of factors including the value of your property, locally set tax levels and whether it is used as a main home or second home.

Will registering for an online account make you liable for any other taxes? No, your tax liabilities in France are based on other things including the amount of time you spend here and what, if any, income you have here.

You can find a full explanation HERE on whether you need to complete the annual income tax declaration – not completing a declaration when you are required to do so if an offence. It’s important to note, however, that completing the income tax declaration does not necessarily mean you will have to pay income tax in France. 

Will property taxes rise in the future? We really cannot predict that, but it’s not impossible. One thing is certain, however, failing to make a property tax declaration will cost you.  

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For members

LIVING IN FRANCE

Why you might get a letter about French benefits

France is introducing stricter residency requirements for certain benefits, including those that foreigners in France can qualify for, and has begun sending letters out to recipients.

Why you might get a letter about French benefits

In April, the French government passed a decree that will tighten up residency requirements for different types of benefits, including the old-age top-up benefit.

Previously, the rule for most benefits was residency in France for at least six months of the previous year to qualify, though some required eight months and others, like the RSA (a top-up for people with little to no income) requires nine months’ residency per year.

However, the government announced in 2023 its intention to increase the period to nine months for several different programmes – which was put into decree in April – in an effort to combat social security fraud, as well as to standardise the system.

The changes, which will go into effect at the start of 2025, do not affect access to healthcare – foreigners can still access French public healthcare as long as they have been resident here for a minimum of three months. 

Similarly, the rules for accessing chômage (unemployment benefits) have not changed yet. Currently, you must have worked for at least six months out of the last 24 months to be eligible, as well as meeting other criteria including how you left your previous job.

This may change in the future, however, with the French government poised to reform the unemployment system again.

READ MORE: How France plans cuts to its generous unemployment system

Which benefits are affected?

The old-age benefit – or the ASPA – will apply the new nine month requirement. Previously, people needed to be in France for at least six months out of the year to qualify.

If you receive this benefit already, you will probably get a letter in the mail in the near future informing you of the change – this is a form letter and does not necessarily mean that your benefits will change.

If you are already a recipient – and you live in France for at least nine months out of the year – then you do not need to worry about your access to the ASPA changing.

If you want to access this benefit, it is available to certain foreigners, even though it is intended to help elderly (over 65) French citizens with low state pensions.

It is only available to foreigners who have been living legally in France for at least 10 years, and starting in 2025 you will need to spend nine out of 12 months a year in France. You can find more information at THIS French government website.

Otherwise, prestations familiales, or family benefits will be affected by the new nine month residency rule. These are available to foreigners with valid residency cards, as long as their children also live in France.

This includes the family allowance (given out by CAF), which is available for families on low incomes with more than two children, as well as the ‘Prime à la Naissance’, which is a means-tested one-off allowance paid in the seventh month of pregnancy to effectively help with the start-up costs of becoming a parent, will also be affected by the new nine month residency rule. 

READ MORE: France’s family benefit system explained

If you receive these benefits already, then you will likely receive a letter explaining the changes shortly.

And finally – the RSA, which is the top-up benefit for people with little to no income, was already held to the nine month standard, so there will be no residency-related changes.

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