14. Local Property Taxes in France

Within 90 days of the property being ready for occupation (even though some minor works may still need to be completed) you are obliged to advise the French tax authority in order that they can undertake a review of the rateable value of the property.

The rateble value of the property will then be used as the basis for assessing your liability to the two local French property taxes, the taxe foncière, and the taxe d'habitation.

The declaration should be made using the Form H1. If it is an apartment, then you should use the Form H2.

The form should be submitted to your local Centre des Impôts Fonciers or Bureau Cadastre.

Provided the form is submitted within the stipulated period, then you may be eligible for a reduction in the tax for a period of two years (which can be increased to fifteen years for those in receipt of subsidised government mortgages).

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.

There is relief on the payment of the taxe fonciere for 15 years, for those properties designed and built that comply with agreed environmental standards. The bar is set very high. You will need to discuss the details with your architect.

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