The taxe foncière French property tax has increased by over 20% in some towns in France this year, the latest figures from the landlords’ union, the Union nationale des propriétaires immobiliers (UNPI), show.
The tax has increased by on average 4.7% in France’s 200 biggest towns/cities.
This is up from 1.3% in 2021.
Towns where taxe foncière has increased the most
The top 10 towns/cities where the taxe foncière has increased the most in 2022 are:
- Poissy (Île-de-France): +23,9%
- Mantes-la-Jolie (Île-de-France): +22,2%
- Martigues (Provence-Alpes-Côte d'Azur): +19%
- Bagnolet (Île-de-France): +18.6%
- Marseille (Provence-Alpes-Côte d'Azur): +16.3%
- Tours (Centre-Val de Loire): +16%
- Pau (Nouvelle-Aquitaine): +13.6%
- Pantin (Île-de-France): +13.4%
- Bagneux (Île-de-France): +13.3%
- Strasbourg (Grand Est): +12.6%
The increase has been more moderate in other major cities such as Paris (+3%), Toulouse (+4.1%), Lyon (+3.4%), Le Havre (+3.4%), Rouen (+3.4%), Dunkirk (+4.1%) and Lille (+4%).
The generally large increases are due to nationwide inflation and also local authorities increasing – in some cases substantially – the local rates that are used as part of the calculation of the tax.
Taxe foncière is based on a theoretical annual rental value calculated by the tax office, called the valeur locative cadastrale (VLC). This figure, which will probably not bear much resemblance to the actual market value you would obtain if you rented it out, takes into account various factors such as location, quality of construction and comfort.
The VLC is divided in half, to take account of expenses such as maintenance, insurance and repairs, and then has a percentage rate applied to it that is voted on by your local authorities. This gives the tax payable
This year, the VLC of all properties was increased by 3.4% across the country, because it is tied to inflation, which was at 3.4% in November 2021.
“For several years, UNPI has been warning about the soaring property taxes and their dramatic consequences for homeowners and, more generally, for spending power,” the UNPI wrote in a statement following the release of its figures.
“At a time when the 2023 government budget is being examined by parliament, the UNPI deplores the lack of any measure to cap property taxes, at least on the cadastral rental bases.”
The French government previously said that it would integrate a cap on valeur locative rises into the budget this autumn but this was dropped after opposition from local authorities, which faced seeing their local tax revenues reduced as a result.
What common errors lead to people paying too much taxe foncière?
Households may not be paying the correct rate of taxe foncière or other property-related taxes, according to a company which specialises in verifying tax amounts.
David Dricourt, head of Fiscallia, told Le Figaro that there were problems on 60% of the tax bills they analysed.
The company also verifies local taxes, taxe d'habitation bills, taxe d'aménagement bills, etc.
Karine Ambroise, a lawyer specialising in tax law, has noticed the same problem and has developed a website that lets individuals check their taxe foncière bills called jevérifiemataxefoncière.com.
One common error is that people declare ancillary rooms as part of the main living area of the property. This could be a garage, laundry room, attic, cellar, etc.
The full area of a main room, such as a living room, is taken into account when calculating a property’s ‘living space’, which contributes to the calculation of the taxe foncière.
But not all the space in ancillary rooms should be considered. For example, a 40 square metre garage may only have a 24-square-metre ‘living space’ due to the fact that a car is regularly parked there. A similar situation could arise in laundry rooms with the placement of washing machines or in attics with sloped ceilings, for example.
Another common error is not accurately declaring the state of the property.
A 20% reduction can be applied to the calculation of the valeur locative cadastrale if the property is in a very poor state. On the flipside, a 20% increase will be applied to a property in very good condition.