How to complete French property form if home is owned by UK company
Partner article: Tips on filing a déclaration d’occupation and the tax implications for property owned in this way
Every French home owner is obliged to filing a déclaration d’occupation before June 30
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Reader question: We have a property owned by our English company since 1997, but it does not show up on the impôts professionnel space online. How can we complete the déclaration d’occupation status for the house?
Every owner in France must declare whether their property is a main residence, holiday home, vacant, or rented out by June 30.
The fact that the tax office wants this information to be submitted via its online portal has caused some difficulties.
For example, many holiday home owners have not set up an online tax account, although it should be possible.
You note that there is no reference to the property on your company’s online portal.
If it is permanently rented to a tenant, it is the owner who is obliged to make the declaration, even though it may be the tenant who pays taxe d’habitation.
In this case, you as owners might find it prudent to contact the local tax office.
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We have found them helpful in our recent experience.
The contact details will be on your local tax bills.
Note that French law provides for the possibility of penalties if the June 30 deadline is missed.
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It is worth highlighting that it might be disadvantageous to own French property through a UK company.
Various complications can arise, including potential exposure to a French tax of 3% of the property value.
There is also an adverse regime for French capital gains tax.
There can be tax issues in the UK too – for example, if the owners use the property free of charge.
However, if they pay a rent to avoid that issue, the company would have to declare the income in France.
If the intention of the company owners when structuring in this manner was to avoid exposure to French inheritance tax, that might not be successful either.
It is important to understand the legal and tax issues arising on both sides of the Channel in any ownership structure.
This reader question was answered by Matthew Cameron of Ashtons Legal.
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