Our real estate agency in Paris's 16th arrondissement<\/a>, our CENTURY 21 Auteuil Immobilier and Auteuil Seine offices will explain the main local property taxes: property tax, housing tax on second homes, TEOM, taxes on vacant properties, and more\u2026 These are essential details to know before buying, renting, or keeping a property.<\/p>\n Local property taxes are taxes collected by local governments (municipalities, intermunicipal associations, departments, and regions) to fund local public services: schools, roads, sports facilities, waste collection, and urban development.<\/p>\n They relate to the ownership or occupancy of real estate: apartments, houses, parking spaces, commercial spaces, land, etc. The main ones for an individual are:<\/p>\n Each tax has its own tax base, but they are all based on the cadastral rental value of the property<\/a> and on rates set by local governments.<\/p>\n Property tax is payable by any owner (or beneficial owner) of real property as of January 1 of the tax year, regardless of whether the property is occupied, rented, or vacant.<\/p>\n It applies to most properties that are \u201cfixed to the ground\u201d and qualify as buildings: apartments, houses, parking spaces, outbuildings, commercial premises, and certain parcels of land.<\/p>\n His calculation is based on two factors:<\/p>\n Good to Know<\/strong>\u00a0: The amount of the property tax = assessed rental value \u00d7 50% \u00d7 the approved tax rate.<\/p>\n In the event of major renovations (expansion, adding a story, change of use, etc.), the owner must report them: the new rental value will not be taken into account until January 1 of the following year.<\/p>\n There are many situations in which a property owner may be eligible for property tax relief. These programs may take the form of a full exemption, a temporary exemption, or a partial reduction, depending on the owner\u2019s profile, income, or the characteristics of the property.<\/p>\n Some people may be completely exempt from property tax on their primary residence. This applies, in particular, to:<\/p>\n When the criteria are met, the tax authority automatically applies this exemption.<\/p>\n Certain situations may qualify for a temporary property tax exemption:<\/p>\n These measures are intended to encourage construction and renovations that improve the energy efficiency of homes.<\/p>\n There are other measures that can help reduce property taxes:<\/p>\n A cap on property tax may be granted when:<\/p>\n This process is not automatic and requires filing a request with the Public Finance Center as soon as you receive your tax notice.<\/p>\n Since 2023, the housing tax has been eliminated for primary residences, but it remains payable on secondary residences.<\/p>\n It, too, is calculated based on the property\u2019s assessed rental value, to which rates set by the municipality are applied. Some cities, particularly those in high-demand or highly sought-after areas such as Paris, may set:<\/p>\n As the owner of a second home in the 16th arrondissement, it is therefore important to factor this tax into your overall budget for purchasing and maintaining the property.<\/p>\n The TEOM funds the collection and processing of household waste. It applies to all properties subject to the property tax on built structures, even when the property is temporarily exempt from property tax.<\/p>\n Several measures may apply depending on the location and length of time the dwelling has been vacant:<\/p>\n Furthermore, even an vacant property is still subject to property tax. A partial tax reduction may be granted if the vacancy is involuntary (due to renovations, inability to rent, etc.) and lasts at least three months, upon request to the public finance office.<\/p>\n Local governments play a central role because:<\/p>\n Two identical homes will therefore not be subject to the same local taxes, depending on the municipality\u2014or even the neighborhood\u2014where they are located. <\/span><\/p>\n Before signing a preliminary sales agreement, it is recommended that you:<\/p>\nWhat is a local property tax?<\/h2>\n
\n
How does property tax work?<\/h2>\n
\n
What property tax exemptions or reductions are available?<\/h2>\n
Exemptions Based on Personal Circumstances<\/h2>\n
\n
Temporary Exemptions for New Construction or Renovations<\/h2>\n
\n
Tax Relief for Social Reasons or Due to a Vacant Residence<\/h2>\n
\n
Income-Based Property Tax Cap<\/h2>\n
\n
How does the housing tax work for second homes?<\/h2>\n
\n
What is the TEOM (household waste collection tax)?<\/h2>\n
\n
What taxes apply to vacant housing?<\/h2>\n
\n
How do local governments influence property taxes?<\/h2>\n
\n
How can you estimate your local taxes before buying a home?<\/h2>\n