Hundreds of UK residents with second homes in France may soon find themselves subject to fines for failing to report their property to the French authorities.

Under changes taxe d’habitation – the French property tax regime – owners of properties in France have until 31 July to declare their use of residential properties.

For the past few years, there has been a gradual decrease in the tax levied on properties serving as primary residences, achieved by boosting the exemption amount.

The culmination of this process ended this year as the tax will be entirely eradicated for primary residences.

However, owners of secondary or vacant properties will still bear this tax obligation and may also face an additional charge in select premium areas.

It remains crucial to declare these properties for the purpose of determining which ones will qualify for the exemption.

The obligation to report the use of property to the French Authorities affects 34 million owners of 73 million premises, including many overseas owners of French property.

Declarations must be made online via a government portal by the deadline. This requires owners to declare the status of the property as either:

  • Owner-occupied main residence
  • Owner-occupied second home
  • Vacant
  • Occupied by a third-party free of charge
  • Rented

Overseas owners of second homes we warned and should have registered with the French tax authorities to get a tax number in order to provide a declaration.

This declaration should also be made where the property is owned by a company or through Société Civile Immobilière.

Owners who completed the sale of their property after 1 January 2023 or who are currently selling their properties must still declare the occupancy status, despite the upcoming changes.

Too late?

There are still a few days left to make a declaration. Be aware that, incomplete or incorrect declarations will attract a fine of €150 per property.

If you are concerned about the impact of this change to legislation on your property in France, please speak to our experienced property specialist Saio Kamara by calling 44 (0) 20 7240 0521 or emailing saio.kamara@mackrell.com

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