What is the difference between property tax, housing tax, and the TEOM?
Property tax is payable by the owner of a property. It applies to built properties, such as an apartment, a house, a building, or business premises.
The housing tax applies to the occupant of the dwelling. It has been eliminated for primary residences, but remains payable in certain cases, particularly for second homes.
The TEOM, the household waste collection tax, often appears on the property tax bill. It funds local waste collection. In rental situations, the landlord can generally recover this amount from the tenant.
Who is required to pay property tax, and under what circumstances?
The person liable for property tax is the owner as of January 1 of the tax year. This rule applies even if the property is sold a few weeks later.
An individual, a real estate investment company, or a business may therefore receive a property tax notice if they own a developed or undeveloped property as of that date.
When do you receive the property tax bill, and when is the payment due?
The property tax bill is generally available in late summer in the "Personal Account" section on impots.gouv.fr. Payment is usually due in October, with the deadline varying depending on the payment method.
Monthly payments help spread the burden evenly throughout the year. They prevent an excessive cash outflow, especially when the tax amount increases.
How is property tax calculated?
The calculation is based on the property's assessed rental value. This tax base corresponds to a theoretical annual rent, to which the tax authorities apply the rates set by local governments.
The amount of the tax therefore depends on two factors: the characteristics of the dwelling and the municipality’s tax policy. Renovations, an addition, or a change in use may alter the assessed value.
Which properties are subject to property tax?
Property tax applies to developed properties: apartments, houses, parking spaces, basements, commercial spaces, offices, and business buildings. Land may also be taxed as undeveloped property.
In Paris’s 16th arrondissement, this factor is an important consideration when analyzing a real estate purchase. Whether it’s a family apartment, a second home, or a rental property, property tax is a direct expense in the owner’s annual budget.
