If you own property in France, whether as a main residence, second home or rental investment, it is important to understand how French property taxes work and when they fall due.
Each year we hear from UK-based clients who are unsure whether they should expect a bill, which tax applies to them, or whether recent reforms mean they no longer need to pay at all. This uncertainty has increased following changes to taxe d’habitation, which have altered the rules but not removed the tax entirely.
This guide explains the difference between taxe d’habitation and taxe foncière, who must pay them, and when they are due, with particular focus on non-resident and second-home owners.
An Overview of French Property Taxes
France has two main local property taxes that concern homeowners:
- Taxe d’habitation: linked to occupation of a property
- Taxe foncière: linked to ownership of a property
Although they are often mentioned together, they operate very differently and are assessed separately. Understanding this distinction is key to avoiding confusion.
Taxe d’Habitation in France: What It Is and Who Pays It
Taxe d’habitation is a local tax traditionally paid by the occupant of a property, rather than the owner. Liability is assessed based on who occupies the property on 1 January of the tax year.
Has Taxe d’Habitation Been Abolished?
In recent years, France has abolished taxe d’habitation for most main residences. This reform applies primarily to properties that are:
- The taxpayer’s principal home
- Occupied as a main residence on a full-time basis
However, this does not mean taxe d’habitation has disappeared altogether.
When Does Taxe d’Habitation Still Apply?
Taxe d’habitation may still be payable if the property is:
- A second home
- A holiday home
- Occasionally occupied
- Vacant but classed as habitable
This is why the tax remains highly relevant for UK nationals who own property in France but do not live there permanently.
MW Notary explores this distinction in more detail when discussing owning a property in France and taxe d’habitation, particularly in the context of second-home ownership.
When Is Taxe d’Habitation Due in France?
Although liability is assessed as at 1 January, taxe d’habitation bills are usually issued later in the year, most commonly in October or November.
Payment deadlines vary slightly by commune and payment method, but are typically set a few weeks after the bill is issued. Many property owners opt for monthly instalments to spread the cost.
Because liability is fixed at the start of the year, searches for “when is tax d’habitation due in France” often spike in January, when owners are reviewing their financial obligations for the year ahead.
Taxe Foncière in France: A Tax on Ownership
Unlike taxe d’habitation, taxe foncière is payable by the property owner, regardless of whether the property is occupied.
Taxe foncière applies to:
- Residential property
- Rental properties
- Second homes
- Vacant properties
- Both residents and non-residents
If you own property in France, taxe foncière will almost always apply.
The tax is calculated based on the property’s assessed rental value and the rates set by the local authority, which is why amounts can vary significantly from one region to another.
Our guide to owning a property in France and understanding the taxe foncière provides further insight into how this tax is calculated and why it can change from year to year.
When Is Taxe Foncière Due in France?
Taxe foncière is also assessed based on ownership as at 1 January of the tax year, but bills are usually issued slightly earlier than taxe d’habitation.
In most cases:
- Bills are issued in September or October
- Payment is due in October
As with taxe d’habitation, owners can choose to pay in one instalment or by monthly direct debit.
What Happens If You Buy or Sell Property During the Year?
A common source of confusion is what happens if you buy or sell a property part-way through the year.
Legally:
- The person who owns the property on 1 January is liable for taxe foncière for the entire year
- Taxe d’habitation depends on occupation as at 1 January
In practice, buyers and sellers often agree to apportion taxe foncière in the sale contract, but this is a private arrangement rather than a tax rule.
This is one reason why specialist advice during a French property transaction is so important.
Why French Property Taxes Can Be Confusing for UK Owners
French property taxes differ significantly from the UK system, particularly for:
- Second-home owners
- Non-residents
- Inherited properties
- Properties held jointly or through family arrangements
Add to this the recent reforms to taxe d’habitation, and it is easy to see why many owners are unsure whether they are still liable or what they should expect to pay.
Understanding how these taxes fit into the wider legal framework of French property ownership is an essential part of managing your obligations correctly.
Legal Advice on French Property and International Law
MW Notary advises UK clients on matters relating to French property law and including ownership structures, property transactions, succession and ongoing legal obligations.
If you own, or are planning to own, property in France, our French law services can help you understand how French rules apply to your individual circumstances and ensure matters are handled properly from the outset.
Speak to Us
Whether you are unsure about an upcoming tax bill, purchasing a property in France, or reviewing your long-term arrangements, clear legal guidance can make all the difference.
To discuss your situation and receive tailored advice, please contact MW Notary and speak to our experienced team.