Why has the taxe foncière bill gone up on your French property?
We recap the reason bills have increased for the vast majority in 2023, as payment deadlines approach
Most councils in France have raised the property owner’s tax
HJBC / Shutterstock
This month is the deadline for payments of the taxe foncière property owners’ tax, which this year has in most cases risen at least 7.1%, linked to cost-of-living rises.
This tax is based on half of a theoretical ‘VLC’ rental value used by tax offices for your property. Your local council – sometimes also an intercommunal body – then applies a percentage rate.
The rental value is linked to the consumer price index
VLCs are subject to annual national revaluation, which since 2018 is linked to the consumer price index.
Some MPs had argued for a cap at 3.5% this year, which sees the largest rise since 1989.
Finance experts FSL say that, out of 191 communes of at least 40,000 population, around a fifth also raised their own rates – although five communes decided to lower theirs.
The rise in VLCs for 2024’s tax is expected to be 5%. It remains to be seen if the government will act to reduce the bills next year.
Read more: Taxe foncière explainer: Who pays and the exemptions
Households will pay less property tax
Despite this, financial media Les Echos estimates that households still saved an average €720 in tax this year as a result of no longer paying taxe d’habitation accommodation tax on main homes.
Some councils cited its loss as one reason for raising rates but the government claims it compensated councils for this “to the nearest euro”.
Read more: Why do only second home owners pay taxe d’habitation in France?
Spread the cost
If you have not done so, you might consider the mensualisation (monthly instalment) system for local property taxes for 2024, which can be done if you have a bank account in France or the Sepa zone, including the UK.
You can request it via your personal space at impots.gouv.fr or by phone, using the number on your tax bills.
Payment deadlines
October 16: 10th mensualisation instalment; also the date to pay your bill if you pay in one go and are not using a ‘digital’ payment;
October 21 (midnight): The deadline for payments by internet or by smartphone app. The money will be taken from October 26.
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