Tax points to consider before the start of 2025 in France
If you donate money to certain charities now it can reduce the amount of tax you pay next year
Check the French tax website to see if you have any payments pending before the end of the year
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The final weeks of 2024 bring the payment deadlines for several business and property taxes. December 31 is also the deadline to make donations to certain charities in order to be eligible for a deduction in tax due in 2025 (related to 2024 income).
The French tax year runs from January 1 to December 31, meaning that several deadlines are approaching with the new year.
These include the final payments of the taxe d'habitation property tax, the tax on vacant homes, the cotisation foncière des entreprises (CFE) business tax, income tax and social security contributions and the deadline for charitable donations.
Payment deadlines
Taxe d'habitation:
If you do not pay monthly, you have until midnight on December 21 to settle your taxe d'habitation online.
The tax will be debited from your bank account from December 27. You will be informed of the date of the debit when you register your payment order.
Tax on vacant homes:
If you have a property that is left empty and unused and you need to pay a property tax due to this then - assuming you are not set up to pay monthly - you have until midnight on December 21 to pay your tax online.
This applies either to taxe sur les logements vacants (tax on vacant homes) in areas officially considered to be under housing pressure, or to other areas where the mairie has voted to levy taxe d'habitation sur les logements vacants (residential tax on vacant homes).
Direct debits will be made from your bank account from December 27. You will be informed of the debit date when you register your payment order.
Read more: More owners will pay French empty home tax in December 2024
Income tax:
If you do not pay monthly and the remaining amount of your income tax is more than €300, the sum due is deducted in four instalments between September 26 and December 27, 2024. The final instalment is deducted on December 27.
Declaring a new business
If you started a new business in 2024 (including registering as a micro-entreprise) you must make a declaration related to the CFE business tax before December 31 in order to be exempt from the CFE for 2024 and pay it in 2025 (unless your type of work is exempt from this tax).
To do this you must complete form 1447-C here. You must also complete the form in case you changed your business address in 2024.
Note that if you work from home and have no dedicated premises, you do not have to fill out section C about the business premises (only section A2) and the tax will be worked out based on turnover and not the value of your property.
Read more: Explainer: who pays France’s CFE business tax and what exemptions?
Charitable donations and tax credits
To benefit from tax reductions for donations to charities and other good causes with regard to 2024 income, you need to make any relevant donations before the end of 2024.
Most gifts to qualifying bodies benefit from a reduction of 65% against your taxable income. Up to 75% is allowed within a maximum €1,000 for gifts to organisations whose main aim is helping people in difficulty with food, healthcare, accommodation etc.
Read more: Can I get French income tax reductions on donations to UK charities?
This means that for a total of €1,000 donated, you are entitled to a tax reduction of €750. So, if your tax is €1,500, you will only pay €750 after the €750 reduction.
Above the €1,000 threshold, the tax reduction falls to 66%.
Note that if you plan to claim in your 2025 tax return for 2024 income any other tax reductions or credits, for example related to services in the home, the relevant expenses need to have been paid for in 2024.
