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PROPERTY

What you need to know about France’s 2024 property tax declaration

If you own property in France, you may need to complete a property tax declaration - here's who needs to do it, how to complete the forms and the 2024 deadlines.

Published: 18 April 2024 14:58 CEST
Updated: 20 April 2024 07:10 CEST
What you need to know about France's 2024 property tax declaration
If you own property in France, you may need to compete the property tax declaration. Photo by PATRICK HERTZOG / AFP

Who

The déclaration d’occupation (property tax declaration) is for everyone who owns property in France, even if you live in another country. It includes people who use their property as their main home, those who use it as a second home and those who rent it out.

It applies to both French people and foreigners.

However, it is not an annual task – if you completed the declaration last year, and if nothing has changed since then, then you have nothing to do this year.

The form concerns property that you owed on January 1st 2024, if you have bought a property since then, you do not need to do the form until next year.

When

The property tax declaration must be completed by 11.59pm on June 30th if you are filing online.

If you are using the paper form, it must arrive at the tax office by July 1st, which means it must be posted no later than June 30th if you are sending it from France, or earlier if you are posting it from overseas. It is advised to send the form by registered mail (lettre recommandé) in order to have proof of when it was sent.

Failure to complete the declaration by the deadline can lead to a fine of €150 per property (although last year several extensions were given to people having trouble with the process).

How

There are two ways to complete the declaration – online or on paper.

For most people, the online option will be easier. 

To do this, you first need to request a numéro fiscal (tax number) if you do not already have one, and then use this number to create an account on the tax website impots.gouv.fr – you can find full instructions on how to do that HERE.

If you file an annual income tax declaration in France and already have an account on impots.gouv.fr then you can use the same login for the property tax declaration.

On paper – The property tax declaration was introduced in 2023 and was initially described as an ‘online only’ task – however this year the tax office has made available a paper option for people who either do not have internet access or who are not confident with online procedures.

You can download a copy of the form HERE, or go to your local tax office and ask for one in person. Once completed, the form is returned by mail, or in person to your local tax office.

You will need a numéro fiscal (tax number) even if you are declaring on paper. If you have previously received property tax bills, the number will be on the bill. If you do have a number you will need to request one – this can either be done in person at your local tax office or online – full details HERE.

The form 

The déclaration d’occupation itself is one of the shorter and simpler pieces of administration in France.

Online – If you are filing online, go to impots.gouv.fr, click Votre espace particulier in the top right hand corner and then login to your account.

Across the top of the screen will be an option ‘Mes biens immobiliers‘ – click that.

You should then see a list of the properties that you own in France – if you have a house that has outbuildings or a swimming pool, you will notice that the outbuildings and pool are listed separately. This is normal.

Click on the listing for your property which should take you directly to the form. Some details will be pre-filled so you just need to check that they are correct. The form will ask for your personal details and also details of the property such as its size and number of rooms.

These details are used to calculate your tax bill – if there is only a minor anomaly that probably won’t make much difference but there is a significant difference (eg the tax office thinks you have 25 rooms but you actually only have 6) then you should correct this as it can affect your bill.

If you have recently purchased your property you should check that the previous owner registered the details correctly, including a swimming pool if you have one. You can be fined for having an undeclared pool.

Finally the form will ask you what the property is used for – a main residence, a second home or rented out and will also ask for the name of the occupier/s.

If the house is a second home, you list yourself as the occupier, and in the bit that says ‘occupied since’ you put the date when you bought it.

If you rent it out on a long-term lease you will be asked for the names of the tenants who were resident on January 1st or to indicate if the property is empty. 

Paper – if you are filing on paper you will not get any pre-filled details and will have to answer all sections yourself. The sections of the form are as described above.

Troubleshooting 

If you own the property jointly with another person or persons, then only one of you needs to complete the property tax declaration. 

If you own your property through an SCI you may not see it listed on your tax account – full details HERE.

The property tax website generally works well, although it does sometimes crash close to deadlines when it is very busy – if you are having trouble with the site first turn off any adblockers, and then turn off automated translation tools (the site allows you to copy and paste chunks of text into a translation tool in a separate window if you’re struggling with some of the French vocabulary). 

READ ALSO French property tax declaration – your questions answered

If you’re having difficulties, you can visit your local tax office – Google Centre des finances publiques plus the name of your commune to find your local office. You do not need an appointment and can visit on a walk-in basis, but take careful note of the opening hours as not all offices are open five days a week.

Some tax offices in smaller towns cannot deal with property tax queries, but if this is the case they will be able to direct you to the tax office in the your area that can answer your query.

You can also call the tax helpline on 0 809 401 401, or book a telephone appointment by heading to the ‘Contact et redenez-vous’ section on the tax website.

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For members

AMERICANS IN FRANCE

Americans in France: Will my tax situation change if I get French citizenship?

If you're thinking of applying for French citizenship, then you might be curious whether there will be any tax ramifications to becoming a dual national.

Published: 2 May 2024 16:44 CEST
Americans in France: Will my tax situation change if I get French citizenship?

Gaining French citizenship can have plenty of benefits for Americans living in France, from the right to vote in French elections to freedom of movement in the EU – as well as a more intangible sense of belonging in the country you now call home. 

However, Americans living abroad always have to contend with the United States’ system of citizenship-based taxation, which requires US nationals to report their global income to the IRS yearly, however long they have been out of the country.

This may result in making two tax declarations every year if they move to a country – like France – which requires yearly declarations from all residents.

As a result, Americans have to think about possible tax consequences before making decisions to move, invest, or perhaps take on a second nationality.

To help answer the question of whether there are special tax ramifications for French-American dual nationals living in France, The Local spoke with tax expert Jonathan Hadida from HadTax.

Hadida said: “There is really no impact. You still have yearly reporting requirements to both countries, and from the French side you will still continue to give you the benefits of the tax treaty”.

Key items, such as your US-based pension, would continue to be taxed in the US and not France regardless of whether or not you take on French nationality too.

READ MORE: Ask the expert: What Americans in France need to know about 401(k) and other pensions

Unfortunately, many of the limitations Americans in France experience would also remain in place. French investment options, such as the Assurance Vie, would still unwise for dual nationals, as the IRS sees them as PFICs (Passive Foreign Investment Company).

While the Assurance Vie is a great tool for being tax efficient for non-Americans, and can offer alternatives to the regimented, traditional French inheritance process, for Americans living in France (including those with dual nationality) it can lead to lengthy and complicated dealings with the IRS. 

“To the US tax authorities, you are still American first, second, third and fourth place. They don’t really care that you are also French,” Hadida said.

“The only real change to your tax situation would be giving up your American citizenship, but keeping your US citizenship in addition to French citizenship does not really change anything.”

What happens tax-wise if I renounce my American citizenship?

Renouncing US citizenship is not as simple as scheduling an appointment at a US embassy or consulate, paying the applicable fee, and declaring that one does not want to be American.

There are several factors to consider, and depending on your situation, in the long-run it might be more advantageous to hold onto your US citizenship to continue benefiting from certain parts of the US-France dual taxation treaty (PDF).

For others, keeping US citizenship might be onerous with its yearly reporting requirements, as well as the difficulty it can pose with putting money into French investment vehicles due to citizenship-based taxation and FATCA (US legislation that passed in 2010 to track money laundering). 

While renouncing your American citizenship undoubtedly pushes you further out of the reach of the IRS, you should consider that you might owe an exit tax, if you are deemed a ‘covered expatriate’. Usually, this is only required of high-net worth individuals (worth more than $2 million).

According to the US expat tax site 1040 Abroad, this also includes people who failed to comply with tax obligations in the five years preceding their renouncement, as well as people who had “an average annual net income tax liability exceeding a specified threshold” (as of 2022, this number was set to $178,000).

People renouncing US citizenship can also be subject to a special inheritance tax on gifts made to US citizens or residents, following their renunciation. 

READ MORE: How to renounce American citizenship in France – and why you might want to

You should also think about your US-based investments.

“You would no longer benefit from the tax treaty in the same way if you give up your US citizenship. For example, Article 24 of the treaty covers investment income, making it taxable in the US and giving you a deemed credit in France.

You would lose this benefit if you renounce, and this could make a big difference if the taxation level is lower in the US, as it often is with dividends or capital gains.

“Your IRA and pension plans will continue to be taxed in the US because this is based on where the pension is earned, not nationality, but you might have to start filing a non-resident tax return to the US after renouncing citizenship,” Hadida said.

The tax expert said that renouncing citizenship should be decided on a case by case basis.

“Every situation is different, and for some people it might not make sense to give up certain benefits from the US-France tax treaty. You should speak with a financial advisor before deciding”, he said.

READ MORE: Divorce, stress and fines: How citizenship-based taxation affects Americans in France

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