New year rhymes with a set of obligations that every French person must take into consideration. If you are an owner, then the property tax concerns you! What should we expect for this year?
We learned recently that the abolition of the housing tax did not concern all French people. If for some this was good news, it is unfortunately only a false joy for others. Added to this is another equally important tax for owners, property tax. If you are one of those lost taxpayers when it comes time to provide your statementsbetween withholding tax, reductions and tax credits, or even income tax, it is time for you to learn more about this annual tax.
Property tax is a tax that concerns all French owners. Whether it is an apartment, a house, a building, a garage or simply a parking space, it affects everything that is built. It is therefore to be excluded from the property tax all residences of the caravan or mobile home type as long as they are not “fixed by masonry ties”, specifies the Ministry of the Economy. She is due to the municipality in which the property is located from the moment you are owner on January 1 of the tax year. But how is calculated the amount of this tax and why is she upgraded every year ?
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An increase of more than 7%!
The property tax is calculated from the cadastral rental values and is reassessed each year according to inflation. While in 2022, a 3.4% increase was imposed, it is an increase never seen “since 1989” that French taxpayers are about to experience. Frédéric Zumbiehl, lawyer at the UNPI, points out the refusal of the State to cap or regulate the annual revaluation of the property tax : “This is what the rejected amendment to the 2023 Budget Law wanted”. A refusal justified according to him by the fact that “ municipalities can always decide to reduce their tax to compensate for this increase in the rate… But this is extremely rare”he adds.
I’inflation keeps rising, you should not expect anything else for the property tax. Result : 7.1% increase for the year 2023. An amount that each municipality can also reassess upwards or downwards since it is the town halls that make the final decision. “The rental value is fixed by the State, but afterwards the municipalities meet and vote on the rates. They then decide to take what they want, 7%, 10%, 40%… It’s Russian roulette! » gives as an explanation Frédéric Zumbiehl. This is how we already know that the municipality of Lyon, for example, will apply a rate of 9% for the year 2023, when Grenoble, for example, is counting on a figure of 25%!