A gradual reduction in residence tax on French real estate was initiated in 2018. This reform has led to total exemption from this tax for primary residences as from 1 January 2023.
At the same time, a new reporting obligation has been introduced for owners of property for residential use located in France (Article 1418 CGI).
As from 2023, owners must inform the tax authorities of the identity of the occupants of their property. The aim of this measure is to establish whether the property is subject to tax (residence tax or vacant housing tax).
The tax authorities have set up an online service “Manage my property” (Gérer mes biens immobiliers) for individual and professional property owners to make this declaration from their secure space on the impots.gouv.fr website.
This obligation applies to all property owners, regardless of whether they reside in France or abroad, and to both natural persons and legal entities. The deadline for completing this initial declaration is 1 July 2023.
Failure to make a declaration of occupancy, or making an incomplete or inaccurate declaration, will result in a fine of €150 for each premises for which the required information has not been provided to the authorities (Article 1770 terdecies CGI).
The owners of French real estate must therefore be informed of this new obligation,
especially when they live abroad and have only limited access to French tax news.
Please feel free to view the summary sheet provided by Althémis.
Guillaume Etain, Althémis Paris – France