12. Planning Taxes in France

Although there are no fees or taxes payable on submission of a planning application or declaration of works, if consent is granted, then several local fees and taxes are potentially payable.

However, before you get too concerned, these taxes are not applicable in all communes or for all projects.

Whilst there is some local variation, the main fees and taxes, collectively referred to as taxes d’urbanisme, are as follows:

1. 12.1 Infrastructure Tax
2. 12.2 Protection of Open Spaces
3. 12.3 Planning Advisory Service
4. 12.4 New Highways
5. 12.5 Service Connections
6. 12.6 Land Tax

12.1. Infrastructure Tax

This tax is called the taxe locale d'équipement (TLE).

It is basically a tax to go towards the costs of the local infrastructure.

The tax is applied in those communes with more than 10000 habitants and in most communes in the Paris region. In other communes it is discretionary, subject to a decision of the local commune.

It is payable following grant of a permis de construire or a déclaration de travaux. The first payment is due within 18 months of permission being granted and the second within 36 months.

The calculation of the tax is based on a formula related to the net habitable size of the property. The rate is 1% to 5% of this figure. Depending on the location and property, the actual amount payable may amount to several thousand euros.

The following two taxes often form part of (annexed to) the TLE.

12.2. Protection of Open Spaces

This tax is called the taxe départementale des espaces naturels sensibles.

It is payable in those départements where the Conseil Général considers it necessary to meet the costs of protecting and maintaining opens spaces and forests open to the public.

Like the TLE the calculation of the tax is based on formula relating in part to the size of the property, at rate of about 1%, calculated on the same formula as the TLE.

12.3. Planning Advisory Service

This tax is called the taxe départementale pour le financement des dépenses des conseils d’architecte, d’urbanisme et de l’environnement (TDCAUE).

It is payable to fund the free architectural and planning advice service available through the Conseil d’Architecture ‘d’Urbanisme et de l’Environnement (CAUE), which we summarised in Section 5.

It has application to new buildings and extension as well as certain other works.

It is calculated on the same basis as the TLE at rate of 0.30%.

12.4. Highways Tax

This tax is called the participation pour voies et réseaux (PVR).

It is a tax that is more normally going to be payable as part of a new development project, to go towards the cost of new or improved highway services.

Local communes can also use the TLE to fund these services, rather than imposing this tax.

The amount payable depends on the cost of the works.

12.5. Services Connection Fee

This tax is called taxe de raccordement à l’egout (PRE).

It is a tax (or more properly a fee) payable for connecting the property to the mains sewer, where the public drainage system is already in place.

In order to apply the tax must have been mentioned in the planning consent.

12.6. Land Tax

This tax is called the taxe foncier.

Within 90 days of the property being ready for occupation you are obliged to advise the tax authority in order that they can undertake a review of the ratable value, (valeur locative) of the property.

The main tax in question is that of the taxe foncier, a property tax payable every year by owners of the property. The revision of the rateable value of the property will also impact on the level of the other local annual property tax, the taxe d'habitation.

The declaration should be made using Form ‘H1’ which you can download by clicking on Taxe Foncier .

The form should be submitted to your local Centre d’Impôts Foncier, or to your Centre des impôts (CDI), as the former are gradually merged with the local tax office.

Provided the form is submitted within the stipulated period, then you are granted a reprieve from any increase in the taxe foncier for a period of two years.

Conversely, if the declaration is not made within 90 days then there is the risk of penalties being imposed or, at a minimum, loss of the full two-year exoneration.