The two main property taxes are:
- Property tax
- Housing tax
Reforms are currently underway to abolish the Taxe d’Habitation and many French residents will find that they are now exempt from paying it. We’ll explain more about that in a minute.
Additional taxes for landlords and tenants
There are two other taxes that you will find added to your property tax bills.
Waste Collection Tax/Household Ordinances
The first is the Household Waste Collection Tax (TEOM), or refuse collection charges. This is usually included in the property tax and applies to all owners who benefit from waste collection services organized by the local municipality. If this tax is paid by the owners, in the case of a rental property, it can also be re-invoiced to the tenant in the form of monthly or annual charges included in the rental amount.
Read more about this in our article Recycling, waste and garbage collection in France.
French TV License/CAP
Second, there is the contribution to public broadcasting (CAP) or TV License, which is payable for all properties that have a TV receiver or similar TV receiving device. It is only paid once per taxable household, so if you own more than one property, you don’t have to pay it twice. In 2021, this tax is set at €138 per year in metropolitan France.
If you don’t own a television or similar device (computers with online subscriptions such as Netflix don’t count), you may qualify for an exemption to do so by checking the corresponding box on your annual tax return. Fines are applicable for any misrepresentation.
Who has to pay French property taxes?
Property tax is a property tax, and is paid by the owner of the property, whether he occupies the property or whether it is a secondary or principal residence.
Housing tax is a council tax. You have to pay this tax if you own a property and live in it yourself, make it available to you or rent it out on a short-term basis. When the goods are let on a long-term basis, this is paid for by the tenant.
These two taxes apply to non-residents as well as residents, and are often higher on secondary residences than on principal residences due to possible discounts on the principal residence.