-
Woman wins local tax fight over French home invaded by squatters
A court has ordered that she is refunded four years of the tax. It was her fourth attempt to be exonerated
-
What is average salary in France? How does it compare with US or UK?
We also look at the average disposable income per capita in OECD countries
-
Interest rates for loans to buy property in France continue to fall
The drop may help kickstart the market as banks and politicians explore new ways to boost home sales
France’s ‘garden shed tax’ is up 7% on last year
This one-off tax, officially called the taxe d’aménagement , is paid on most constructions requiring authorisation so covers structures such as sheds giving it its colloquial name
The so-called ‘garden shed tax’ has shot up this year, linked to rising construction costs.
This one-off tax, officially taxe d’aménagement, is paid on most constructions requiring authorisation from the council, whether formal planning permission or just prior declaration.
It is known as the garden shed tax because, unlike most property taxes, it is also payable on simple sheds, as long as they have a ground surface area of at least 5m2 and a ceiling height of at least 1.8m.
Compared to last year, the tax has risen around 7%, whereas rises in the previous two years were limited to 1.1% and 0.7%. This hike, confirmed by decree in Le Journal Officiel, is said to be linked to the cost of construction, which is the main factor in the formulas used.
Read more: New shed or pool at your French home? Remember the taxe d’aménagement
The latest Insee figures show a rise in these costs of around 3.5% between the first and third quarters of 2021, but do not account for the last quarter, when prices are said to have risen steeply.
The taxe d’aménagement is worked out using a formula which takes the surface area in square metres multiplied by a set value, which this year is €929 (up from €870) in Ile-de-France and €820 (up from €767) elsewhere.
A percentage tax rate set by local councils is then applied to this figure, so, for example, if your local rate is 7% and you built a 6m2 shed outside Ile de France, you would have paid €322 last year and this year would pay €344.
In some areas, people will pay even more if their councils choose to increase the rates this year.
The tax is payable only once, in the 12 months after obtaining authorisation, or in two payments spread over 24 months if the amount is above €1,500. In the case of prior declaration, authorisation is given tacitly one month after the declaration if you do not hear otherwise.
Related stories:
Who can help with the language barrier at the tax office in France?
Clinging to UK assets while living in France might not make tax sense
Make sense of local rules governing planning permission around France
