French schools, rental properties and vocabulary: 6 essential articles for living in France

If you’re a French homeowner, you might want to consider setting aside some money as property taxes are likely to rise significantly next year.

of tax fonsière – A property ownership tax levied at the local level – a tax paid by all property owners in different from residence taxIt is paid by the person occupying the property (whether owner or tenant) and applies to anyone who owns the building or land. The latter is being phased out.

What makes it more likely?

The main reason property taxes could be raised in 2023 is that the value of property changes each November, depending on inflation and other factors that have changed property values, such as home additions and new pools. for re-evaluation.

Typically, tax fonsière The recent increase in France is due to the phase-out of another property tax, residence tax As a result, the local government ran out of cash.

Why did my bill increase in 2022? What about deals in 2023?

Towards 2022, Property taxes are due on October 15th or 20th., depending on the payment method. Many French homeowners were already in for an unpleasant surprise when they received their tax notices this year.

A revaluation to reflect inflation allowed for a 3.4% tax increase in 2022, raising property taxes for all homeowners. Additionally, local governments voted to raise local taxes. In Marseille his fees rose by 13.1%, in Tours by 11.6% and in Pau by 10%.

In 2023, these values ​​are likely to be even higher.

In theory, property values ​​across France should be revalued to reflect soaring inflation, leading to a 7% rise (compared to the 3.4% rise seen in 2022). ). In June, France’s Finance Minister Bruno Le Maire assured property owners that the problem had been identified and that the government was considering capping interest rates.

However, according to a report in the French daily Le Parisien, some officials said: tax fonsière It will be included in the Finance Bill to be submitted in late September. ”

read more: Reader Question: How can I contest the French tax bill?

In practice, this means that the 2023 budget will be allocated for an approximately 6.5-7% increase in property taxes. The increase will affect at least 30 million homeowners in France.

Various proposals have been put forward for the purpose of maintaining tax fonsière For example, raising the cap to 3.5%, or tying the level of government support to local governments to inflation (that is, local governments are less interested in raising taxes).

Nevertheless, as of September 23rd, these solutions had not yet been deployed.

Second home owners hit harder

Second home owners in France residence tax on top of (residence tax) tax fonsière.

The former is in the process of being phased out for most French residents, but with the exception of the highest earners, those with a second home still have to pay for it.

And for many of those who do, the fees are rising.

In 2022, more towns voted to raise it, but French daily Le Parisien reports that residence tax “continues to soar”, pushing second home owners Some towns are now able to add an additional charge to

Municipality zone tendu (areas lacking housing) have the ability to choose to increase residence tax Up to 60% for second home owners.

read more: Up to 60% tax rate increase for second home owners in France

From 2023, several new areas, including Nantes, will be added to the Zone Tendue list. That means those areas will be able to vote for higher taxes on second home owners.

In 2022, city councils have passed tax increases of up to 60% in major cities such as Bordeaux, Lyon, Biarritz, Arles and Saint-Jean-de-Luz.

how is it tax fonsière Calculated in general?

The formula is complex and calculated annually by the local authorities (albeit under the auspices of a formula set by the French Ministry of Finance). Basically, it has to do with your property’s rentable value divided by two, multiplied by the tax rate set by your local government.

Read also: Taxe foncière: What is French property tax and do you have to pay it?

Municipal tax rates vary greatly by location. So her two people who have the same size homes in different neighborhoods can get very different bills.

To complicate things even more, there are actually three local governments (communes, provinces, and regions), each of which sets its own tax rate and splits the tax to pay for local services. French schools, rental properties and vocabulary: 6 essential articles for living in France

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