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PROPERTY

What second-home owners in France need to know about 2022 property taxes

Autumn in France is property tax season - and for second-home owners there are some important changes to know about this year.

Every year in September and October, households in France receive their property tax bills – which have historically included three things; taxe foncière, taxe d’habitation and the redevance audiovisuelle (TV licence).

For main properties, two of these taxes have all-but disappeared, but for second home-owners the situation is a little different.

Taxe d’habitation

This is the tax paid by the householder and it is being gradually phased out in France and most households no longer need to pay it – the exception to this, however, is maisons sécondaire (second homes).

Local councils set the rate for this tax, and in some areas this can include an additional surcharge on taxe d’habitation on second homes.

This usually applies in areas that have a housing shortage, and although the surcharge has existed for several years it has recently been expanded to include new areas.

Taxe foncière

This is the tax paid by the property owner and this remains in place, and in some areas has increased. Some local authorities, faced with the shortfall in overall taxe d’hab funds, have increased surcharges on the tax for second homes, while most local authorities are also increasing taxe foncière charges to offset the drop in revenues.

This tax is calculated based partly on the size and value of the property you own (which is why if you do any major renovations or add a swimming pool you need to tell the tax office) and partly on the tax level decided by your local authority. 

This means that the actual rate varies quite widely between different parts of France, but in some areas it has gone up by 20 percent.

Redevance audiovisuelle

This is the TV licence and this has been scrapped this year – including for second homes – so your bill will no longer have the €138 per household TV charge. 

Waste collection taxes

Some communes, especially in rural areas, also charge a taxe d’enlèvement des ordures ménagères (TEOM) or la redevance d’enlèvement des ordures ménagères (REOM) to cover rubbish collection. These are also payable in the autumn, although dates and amounts vary from commune to commune.

Renovation projects

If your property is what real estate agents refer to as an ‘opportunity for renovation’ you may be exempt from taxe d’habitation if your property is uninhabitable.

This is this is strictly defined in France as meaning a property is unfurnished, is not connected to utility services, and/or needs work costing at least 25 percent of the value of the property to make it habitable.

Other information

The amount of both taxe foncière and taxe d’habitation varies across France, but you should be informed in the sale details of the amount of the taxe foncière, and you can also request to know the amount of the taxe d’habitation when you buy a property. 

READ ALSO Why French homeowners face higher property taxes in 2023

Second homeowners are not eligible for most reductions or exemptions available on taxe foncière, with the exception of over 75s who are on low incomes. Be aware this is not automatic for second homeowners and must be specifically requested by those who are eligible.

Be aware, too, that authorities can charge an additional 10 percent for late payment without good reason – though you may get this removed if you write a polite formal letter asking for a remise gracieuse de la majoration. You can search for model letters on the internet.

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POLITICS

French MPs back €230m aid for households that use wood-burners for heating

Householders in France who heat their homes with wood-burners will soon be in line for financial help with the cost of keeping warm this winter.

French MPs back €230m aid for households that use wood-burners for heating

During a reading of the draft budget, the National Assembly adopted a €230 million aid package for households that use logs or wood pellets for heating.

The aid package – which had support across the Assembly, and the backing of the government – is modelled on an already existing policy to help the owners of properties that use oil-fired heating systems.

From December 22nd, households heating with wood will be able to apply for a “wood energy voucher” on the cheque energie website. Aid is means-tested, but those eligible will be able to claim between €50 to €200 to help with the cost of heating their homes.

The amendment was passed with 218 votes in favour and just one against.

According to the Agence de la transition écologique (Ademe), wood is the main source of heating for more than three million people in France. 

The price of wood-pellets used in household burners has doubled since the beginning of 2021, leaving many households struggling with the cost of fuel. 

Minister of Public Accounts Gabriel Attal also told MPs that the government was working on ways to reduce ‘profiteering’ from the rising cost of firewood, and said that officials would “not hesitate to crack down” on any cases of fraud.

READ ALSO What are the rules on fires and log-burners in France?

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