Changes have been made to the rules surrounding the taxe foncière, specifically to those who can claim exemption in the short and long-term. Here’s what you need to know.
The taxe foncière is a local property ownership tax and varies in cost from municipality to municipality across the France. Traditionally, it has been paid by the person who owns a property on 1st January of that tax year, but the Finance Law of 2023 has established several of exemptions as well as reductions in payment for those on a low income.
Full exemption of the taxe foncière
As of 2023, a number of groups are exempt from paying the property ownership tax. Holders of the ASI, the supplementary disability allowance or allocation supplémentaire d’invalidité, as well as those benefitting from the ASPA, the allocation de solidarité aux personnes âgées, are no longer required to pay the taxe foncière. No means testing is required to qualify for the exemption.
Those over the age of 75 can obtain an exemption subject to means testing as well as on their second or holiday home too if they have one. Holders of the AAH, the allowance for disabled adults or allocation aux adultes handicapés, are given the same opportunity subject to their income.
The updates to the tax legislation have also brought an end to some marital rights when claiming exemption. For example, the person claiming ASPA must be the property owner or joint-property owner if the couple are to be relieved of the tax. The same applies to the means testing measures.
In all cases, these exemptions should be automatically taken into account following the completion of a 2023 tax return.
In a guide published at the end of January by the Service Public, the means testing ceiling has been set at €11,885 for the first part of the family quotient or quotient familial, plus €3,174 for each additional half-part.
Reduced payments according to income
Those declaring an income below €27,947 for the first part of the family quotient plus €6,530 for the first half-part and a further €5,140 for any other half-parts can obtain a reduction if they apply via the N°2041-DPTF-SD form.
Exemptions for vacant property
Owners could be in line for an exemption if a property usually intended for rental is involuntarily vacant on the part of the owner. This is also the cause for commercial or industrial property. In all cases, the vacancy must last at least three months.
Longer term exemptions for new builds
New builds or property bought off-plan is, in principle, exempt from property tax for two years following the completion of work. New builds purchased as a main residence are also exempt for 15 years if they meet certain conditions: the property must have been built with a loan from the HLM scheme or have been 50% financed by state-subsidised loans unless the financing in question was a zero-interest loan.
All owners should also remember to fill out the new déclaration d’occupation, which came into force on 1st January, by registering the occupation status of their property or properties under the Gérer mes biens immobiliers section of their account on impots.gouv.fr.
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