Owning a property in France? Be aware of the new mandatory occupation status declaration

February 27, 2023

Categories French Property Law Updates

If you own a property in France you have until 30 June 2023 to declare its occupation for tax purposes – we explain how.

While the taxe d’habitation (occupancy tax) is abolished for all main residences and all taxpayers, the taxe d’habitation remains applicable to other premises, notably second homes.

The same applies to the taxation of vacant premises, taxe logement vacant.

In this context, in order to identify the premises that remain taxable, the French government introduced a new reporting provision for all property owners in France.

Who is affected?

All local and overseas owners of property in the country, regardless of where in the world the owners reside, if they are a private owner or involved with a company which itself owns assets in France, SCI property ownership companies and people with usufruit are all included and need to confirm the occupancy status of their building so the correct tax amount can be applied.

The only exception is for properties that are not subject to taxe d’habitation or taxe sur les logements vacants – for example, if they are used by property professionals exclusively for rental purposes.

When and what is the deadline ?

All property owners will have until 30th June 2023 to declare their occupancy status.

This will be a one-off declaration rather than an annual one, which will only need updating in case of a change of circumstances.

How are declarations made?

Anyone subject for French income or property taxes has a numéro fiscal tax number. (You can find this number at the top of a previous tax bill and can have a website space.)

Declarations must be done through the online tax portal  https://www.impots.gouv.fr/accueil  in the tab “Gérer mes biens immobiliers”.

  • If you do not hold an online tax space yet, you will need to apply online to create your access or alternatively call the tax office.

You can refer to the step by step guide of how to use the declaration service by downloading the pdf guide here>>

What must be described?

You must describe the property, state how the property is used and the identity of the occupants.

In other terms, say who was living in or using the property on January 1, 2023, if it is a main or secondary home, is rented out, provided free to someone, or vacant (unused and unfurnished, therefore not available to use).

Why make a declaration?

As the taxe d’habitation has been abolished for all main homes, French government want to make sure this is only levied on secondary residences.

The DGFIP already hold information and details of most main residences as well as secondary houses; however, will not be aware of a recent change of occupancy.

Be aware the information could also be used to check other tax returns and help the tax authorities ensure they are collecting the right tax.

Owners risk the possibility of incurring a €150 fine per property for non-compliance.

As it is uncertain whether there will be some leniency applied to cancel taxes raised when they should not have been due to the owner being late or unaware of this new obligation, we would advise that anyone affected by these rules act quickly to avoid any unnecessary challenges.

If you are unsure whether these new requirements apply to you, have any doubts about compliance, or feel you need assistance liaising with the tax office on your behalf, please do not hesitate to contact our French property and estate team who will be happy to assist you.

Contact Avocat, Deborah Vaysse, on 01227 763939 or email dav@furleypage.co.uk