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TAXES

Why you might find extra money in your French bank account this week

When you check your French bank account on Wednesday, you may find a nice surprise from the tax authorities.

Why you might find extra money in your French bank account this week
Fifty euro banknotes in Arras, northern France. (Photo by DENIS CHARLET / AFP)

Millions of people across France will receive a tax rebate either a direct bank transfer or a cheque (by mail) over the next few days. The first round of reimbursements will be sent out on Wednesday, July 24th, and the second will be sent on Wednesday, July 31st.

If you filed your taxes online via the impots.gouv.fr website, then you can expect your reimbursement to be sent between July 24th and 31st. 

Those who filed on paper may have to wait a little longer. They could receive their rebate sometime between July 24th and August 20th, Actu France reported.

READ MORE: 7 top tips for dealing with the French tax office

The most common scenario for people receiving a rebate is salaried employees whose income is deducted at source, but who are entitled to tax credits, rebates or refunds for things like childcare, domestic help or charity donations.

However money may also be sent to people who are found to have overpaid, or who qualify for other types of rebate.

How does the rebate work?

Most people will receive the payment directly into their bank account, as that information should already be shared with fiscal authorities.

It should appear under the wording ‘REMB IMPOT REVENUS’ and it will be coming from ‘DGFIP FINANCES PUBLIQUES’, according to the French government.

To ensure that the reimbursement goes through smoothly, you may want to check your tax account to verify that the bank account information is correct.

You can do this by going to the Impots.gouv.fr website and clicking ‘Prélèvement à la source’ and then ‘Mettre à jour vos coordonnées bancaires’.

Tax bills

Not everyone will be getting money, some people will be getting bills.

For employees this may be because they were being taxed at the wrong rate, or because they have declared extra income in addition to a salary (eg income from rental property including Airbnb rentals) or they received too much in tax credits earlier in the year and now need to pay back a sum.

Self-employed workers will be getting a tax bill based on the income they have declared for the year. This is in addition to their more regular URSSAF contributions.

How to pay

If you owe up to €300, then you will be automatically debited (from the bank account linked to your tax account) on September 26th.

For those who owe more than €300, the payment will be taken in four separate installments. The first will be on September 26th, then October 25th, November 25th and December 27th.

Beware of scams

Fiscal authorities have warned that people should beware of scams circulating around this time of year, as bad actors may be seeking to impersonate the DGFiP (Directorate General of Public Finances). 

These might include false notifications of refunds, accusations of tax fraud, or requests for payment.

The DGFiP has warned people on their website that tax authorities “will never send emails inviting you to visit an online form to obtain a refund without first logging into your authenticated personal space.”

Tax authorities also warned that they only use email addresses with the domain “@dgfip.finances.gouv.fr”.

As for SMS scams, the DGFiP states that it “never sends out text messages for non-payment.”

It advises that “as a general rule, do not click on the links you receive in text messages telling you that you have to pay a bill, fine or tax. If in doubt, contact the relevant department using another channel (via your personal account, by email or by telephone).”

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For members

TAXES

Where are French property taxes increasing the most in 2024?

Property owners in France can expect to see higher 'taxe foncière' bills this year, but certain homeowners will notice a more significant difference from last year.

Where are French property taxes increasing the most in 2024?

In 2024, French property bills (the taxe foncière) are increasing by an average of 3.9 percent. That said, your individual bill may differ, and some locations are instituting higher increases than others.

The taxe foncière – or property-owners’ tax – is paid by everyone who owns property in France, including those who live in another country. 

It is calculated based on the individual rentable value of the property, which is updated yearly and takes inflation into consideration.

READ MORE: Taxe foncière: What exactly is the French property tax and do I have to pay it?

Basically, if you added a pool or a new veranda, then you can expect your bill to go up.

Then the taxe foncière also considers the local tax rate, which is decided by local authorities, including the commune, département and région.

Where are rates increasing?

The good news is that unlike last year, fewer municipalities opted to increase their tax rates. A recent study showed that among France’s 42 cities with more than 100,000 inhabitants, only seven opted to increase the taxe foncière.

READ MORE: Taxe Foncière: What you need to know about 2024 French property tax bills

Here is the list of the highest average increases, according to BFMTV.

  • Nice, increase of 15.8 percent
  • Saint-Étienne, increase of 14.1 percent
  • Nancy, increase of 13.4 percent
  • Annecy, increase of 13.4 percent,
  • Villeurbanne, increase of 9.8 percent
  • Montreuil, increase of 5 percent
  • Saint-Denis-de-la-Réunion, increase of 2.7 percent

As for smaller cities, with 40,000 to 100,000 inhabitants, 18 of the 154 cities opted to increase the taxe foncière.

These include;

  • Saint-Priest, 16 percent increase
  • Neuilly-sur-Seine, 10 percent increase
  • Meaux, 9 percent increase
  • Clichy-la-Garenne, 9 percent increase
  • Le Cannet, 8.8 percent increase
  • Rezé, 7.7. percent increase
  • Gennevilliers, 5.2 percent increase
  • Fontenay-sous-Bois, 5 percent increase
  • Thionville, 5 percent increase
  • Créteil, 3.9 percent increase
  • Anglet, 3.2 percent increase
  • Bayonne, 3.1 percent increase
  • Antony, 3 percent increase
  • Rueil-Malmaison, 3 percent increase
  • Bourg-en-Bresse, 2.9 percent increase
  • Saint-Pierre, 2.2 percent increase
  • Saint-Louis, 1.4 percent increase
  • Poitiers, 1 percent increase

There were also five areas that opted to decrease the tax, including Brive-la-Gaillarde (down 0.40 percent), Wattrelos (down 0.40 percent), Tarbes (down 0,60 percent), Castres (down 1 percent) and Mantes-la-Jolie (down 2.60 percent).

How much does the increase actually amount to?

Taking Nice – the city with the largest increase – as an example, estimates from Actu Nice in May found that the rise in taxe foncière would be ‘modest’.

The initial estimates showed that it would come out to about €12 a month on average, depending on the surface area of your flat or house.

For homes sized 54 metres squared, the increase would be closer to €9.50 per month, while 100 metre squared homes would see a rise of €16 on average per month.

Ultimately, the exact value of your bill depends on individual factors about your house, as well as location. 

How does this compare to last year?

In comparison, in 2023, property owners saw minimum increases of 7.1 percent, which represented one of the largest increases in 30 years.

Some locations, such as the city of Paris raised the taxe foncière rate by a record 52 percent, while Grenoble raised it by 25 percent and Bordeaux by 11.6 percent.

This guide by The Local can give you a better idea of how much property owners paid in 2023.

What about the taxe d’habitation?

Second-home owners also have to pay the taxe d’habitation, which is a separate type of property tax. This is usually sent out later in autumn, around early to mid-November.

In places with a housing shortage – known as zones tendues – local authorities can increase the taxe d’habitation by a maximum of 60 percent per year.

As for 2024, second-home owners in certain parts of France – particularly those in popular destinations such as Saint Tropez, Chamonix, Ile de Brehat and Saint Malo – should prepare for their tax bills to jump up quite a bit.

READ MORE: The French towns hiking taxes for second-home owners in 2024

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