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Property taxes: How much will it cost to extend your French home?

Installing a swimming pool, building a garden shed, or adding a conservatory to your French home has become more expensive in 2023.

Property taxes: How much will it cost to extend your French home?
(Photo by Meg Jenson on Unsplash)

If you are planning a renovation project in 2023 you’re likely looking at rising cost for materials and labour due to inflation – but there is one other cost to consider; taxes. 

In France there is a one-off tax that has to be paid on certain building works, and the government has raised the rate for this.

The taxe d’aménagement, sometimes referred to as the garden shed tax, applies to all property development – construction, reconstruction and extension – of buildings that require planning permission or a building permit.

Garden sheds, swimming pools or extensions with a surface area of more than 5 square metres are subject to the development tax – although a 50 percent reduction is applied to the flat-rate values of certain buildings, particularly the first 100 square metres of main residences.

READ ALSO Everything you need to know about installing a swimming pool at your French property

The tax is collected by local councils, who set their own percentage rates for the tax, working off the base rate set by the government.

A decree published in the Journal Officiel set the base figures for 2023 at the following rates: 

  • €1,004 per square metre in Île-de-France (up from €929 per square metre in 2022);
  • €886 per square metre outside Île-de-France (€820 per square metre in 2022).

The flat-rate values per square metre of building space, which constitute the basis for the development tax, are revised on January 1st of each year according to the latest construction cost index published by national statistics body Insee. 

Additionally, specific rates are set for:

  • €250 per square metre  for a swimming pool (up from €200 in 2022);
  • €12 per square metre of ground-fixed solar panels (up from €10 in 2022);
  • €3,000 per wind turbine more than 12 metres high;
  • €3,000 per pitch for tents, caravans and mobile leisure homes;
  • €10,000 per pitch for a holiday chalet or bungalow.

The amount of the tax is calculated according to the following formula: 

(Taxable area multiplied by the government-set base figure) multiplied by the percentage tax rate set by the local authorities. This gives the total to be paid in cents. Bills are rounded down.

So, the tax for a 30 square metre extension in an area where the combined local and departmental tax rates total 6.25 percent would be calculated like this:

30 (the size of the development) x 886 (the base tax rate outside Ile-de-France) = 26,580

6.25 (local and departmental tax) x 26,580 = 166,125 cents, more usually expressed as €1,661. 

If the total payable is less than €1,500, you will receive a bill in the six months after planning permission was granted, with details of how to pay.

Otherwise, it is paid in two instalments, 12 months and 24 months after authorisation, with a 10 percent surcharge applied in cases of late payments.

READ ALSO The hidden costs of owning property in France

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TRAVEL NEWS

Driving in France: Motorway tolls rise from February 1st

The cost of using France’s motorway network rose by a below-inflation average of 4.75 percent on Wednesday, February 1st.

Driving in France: Motorway tolls rise from February 1st

Going through the toll booths on France’s motorway network now costs more – though the average 4.75 percent increase remains below inflation, and is lower than the price rise of between 7 percent and 8 percent predicted last September after Transport Minister Clément Beaune called for “reasonable increases”.

“We are well below the reference inflation rate of 6.33 percent,” Vinci Autoroutes, which manages nearly half of the French network, said in a statement.

Even so, motorists may not appreciate the motorway companies’ efforts to ease the effects of the cost of living crisis, as prices rise unevenly across the board.

A journey from Toulon, in the Var, to Mandelieu, in Alpes-Maritimes (113km) now costs €13 in tolls, up from €12.10 in 2022 – an increase of 7.4 percent.

Drivers heading between Lyon and Montpellier now have to pay an extra €1.90 to make their journey, up 6.7 percent on last year’s prices; and motorists will have to pay an additional €2.10 to make the five-hour journey along the A4 between Paris and Strasbourg.

In recent years, the annual rate of the annual increases has been lower. Tolls went up 2 percent on average last year, and just 0.44 percent in 2021. The annual increases are based on a formula that takes into account the rate of inflation and the amount of maintenance work undertaken, which is written into the motorway operators’ contracts with the government.

For home-work trips, Vinci Autoroutes has frozen the prices of 70 percent of trips of less than 30 km, as well as “half of trips of less than 50km and the bypass routes of 35 towns”.

The stretches between Aubagne and Cassis (Bouches-du-Rhône) on the A50, between Villefranche-de-Lauragais and Toulouse sud (Haute-Garonne) on the A61, and between Orléans nord and Olivet (Loiret) on the A10, for example, will see no price increase.

Subscribers to the Ulys 30 electronic toll system, meanwhile, now receive 40 percent concessions, compared to 30 percent previously on their regular commuter route.

According to Vinci, for every €10 in tolls, €4 is then paid to the government in taxes; €3.50 covers maintenance, modernisation and operating costs; and the remainder repays investors and services debts.

However, motorway operators are regularly singled out for the scale of their profits, recorded at €3.9 billion in 2021, 11 percent more than in 2019. 

If you’re driving in French towns and cities, remember that you may need a Crit’Air sticker – full details HERE.

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