Owning property in France? The 2025 tax rules bring changes for residents and non-residents. From new declarations to short-term rental laws, these updates affect your wallet. Here’s what you need to know to stay compliant and save money.
Mandatory Property Use Declaration
All property owners must file a Declaration d’Occupation by July 1, 2025. This applies if your property’s status changed since January 2024. Examples include new tenants or a shift to a secondary home. File online at impots.gouv.fr or use paper forms.
Missed the 2023 or 2024 filing? You must declare now. Non-compliance triggers a €150 fine per property. Non-residents can hire tax professionals for help. If nothing changed, you’re exempt this year.
Taxe d’Habitation and Taxe Foncière Updates
Taxe d’Habitation (Residence Tax)
Second homes and vacant properties face the Taxe d’Habitation in 2025. Local councils in high-demand areas may add a 5% to 60% surcharge. Check with your mairie if you own a holiday home. The tax depends on the property’s rental value.
Taxe Foncière (Property Tax)
All owners pay the Taxe Foncière, with a 3.9% minimum increase in 2025. Local rates may push this higher. New builds get a two-year exemption. Low-income households or owners over 75 may qualify for relief.
Short-Term Rentals: New Restrictions
The anti-Airbnb law, effective 2025, targets short-term rentals. Non-classified rentals lose deductions, dropping from 50% to 30%. The income cap falls from €77,700 to €15,000. Classified rentals see deductions cut from 71% to 50%.
By May 2026, all rentals need national registration. Tourist-heavy areas may add local rules. Consider long-term rentals to avoid higher taxes.
Capital Gains Tax Changes
Furnished rental owners face new rules in 2025. Depreciation deductions now increase taxable capital gains. For example, a €200,000 property with €50,000 depreciation sold for €300,000 yields a €150,000 gain. The tax rate is 36.2%, but relief applies after five years.
Plan with a tax advisor to minimize your liability. Full exemptions kick in after 30 years.
Stamp Duty and Notary Fees
Buying property? Notary fees include stamp duty, which may rise by 0.5% from April 2025. This could increase costs from 7% to 7.5% of the purchase price. New builds may face 20% VAT, with reductions in some areas. Confirm details with your notary.
Wealth Tax (IFI) for Non-Residents
The IFI taxes real estate assets over €1.3 million. Rates range from 0.5% to 1.5%. Non-residents pay only on French properties. A 30% deduction applies to primary homes, and loans reduce your liability.
New residents face French-only taxation for five years. Check tax treaties to avoid double taxation.
Rental Income Taxation
Rental income is taxable, even for non-residents. Unfurnished rentals fall under “revenu foncier.” Furnished rentals are “commercial income.” Non-residents pay a 20% minimum tax up to €28,797, then 30%, plus 17.2% social charges.
Double taxation treaties may lower your bill. The régime réel suits high earners for deductions.
Tips to Stay Compliant
File declarations on time to avoid fines. Claim exemptions like the Taxe Foncière break for new builds. Non-residents should hire tax advisors for compliance. Stay updated via Connexion France or FrenchEntrée.
Conclusion
France’s 2025 property tax rules demand attention. From higher rental taxes to new declarations, preparation is key. Review your property status and consult experts to save money. Act now to stay ahead.
Questions about 2025 taxes?
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