If you’ve finally moved abroad to France from the UK – you’ve got that idyllic stone house and you’ve learnt how to order coffee without pointing, etc – you’re probably just enjoying life and not focused on admin stuff and bills. But that first brown envelope is inevitably going to appear, so what do you do?
Basically, France ties homes to a steady cycle of bills and forms. We get that it’s a bit daunting and confusing at first, but we’re going to walk you through how you can plan cash instead of reacting to surprises. Let’s get started:
France divides housing taxes into local charges and national assessments. Local property taxes come from the commune and its wider grouping – a tax notice shows:
National rules, on the other hand, handle everything from income tax on rents and capital gains tax when you sell to the French wealth tax that only targets real estate. So it’s the local authorities who set the rates, and then the French tax authorities run filings and guidance.
If you keep the place just for family use, you still face ownership charges based on notional rental values in the cadastre. So that figure is supposed to mirror a fair market value for use, and then the council applies its rate to reach the bill.
But as a property owner in France, it’s your job to read the notice each year because categories move and exemptions change. And if the description looks wrong, you need to respond with proof and check for tax relief on new builds or energy work.
France taxes rental income based on where your property sits, not where your bank stands. So that means you have to declare rents on an annual tax return tied to the French tax year (and you choose a regime that fits your costs).
Unfurnished lets generally follow more basic property rules, but furnished rental properties get to use business rules that change deductions and record-keeping. If this all sounds a bit confusing, just focus on filing clean figures on time, and the cycle gets familiar fast.
The setup also matters. We’d suggest using a French account so payments land in one place and you can leave a clear trail for any repairs you’ve made. Keep invoices together and make the return match the folder.
And if you own through foreign legal entities, France still looks for the person who benefits, then taxes the result. Now, structure can help with things like liability or succession, but keep in mind it doesn’t just erase your tax liability.
Local taxes rely on data that’s meant to reflect the building today. So that means you’ve got to tell the mairie if you add a pool or convert an attic, so the register stays aligned with the roof and the walls.
The notice explains payment choices, and you can use direct debit for a smoother curve or pay online. And we’d suggest picking the monthly option and treating it like a utility if you want a more predictable cash flow.
When you sell French real estate, a notaire will work out what your gain is and collect capital gains tax at completion. So at this stage, you’ll need to bring the purchase price and evidence of eligible costs. Time can also soften the bill if the law recognises longer holdings.
Also, every renovation and receipt matters when you’re fixing up the place. So note down what you spend on the new roof or extra insulation and tuck those invoices into a folder – this is probably one of the easiest ways to avoid any last-minute confusion when tax time rolls around.
We get that the whole wealth-tax question can feel a bit confusing. Basically, in France, the main thing they care about is real estate – stocks and bonds don’t even make the list. So if you settle here and your property holdings tip over the threshold, you’ll need to fill in the forms and factor in any debts you can subtract.
It’s more or less the same process if you plan to stay in the UK and just own a holiday home in France – you’ll run the same numbers just to see if the tax still bites.
Some people use a company structure to share ownership or manage inheritance, while others end up in one by inheritance. Either way, French rules ask who really lives under the roof and who benefits from any income.
If a company name sits on the deed, it may face its own local taxes, and everyone behind the scenes has still got to declare rental profits and capital gains against their personal position.
Also, if you’re treating French real estate as more than just a holiday retreat and actually plan to grow it as an investment, you’ve got to be pretty diligent with your paperwork, which means recording:
Every spring, you’re going to have to file income tax:
Then late summer brings the local property tax notice, which spells out everything from the assessment base and tax rates to the due dates. You’ve got quite a bit of freedom in how you want to pay for this. Most do it online, but you can also set up a direct debit or pop in at a local partner office. Just pick whatever fits your rhythm.
And as for valuations, try to ignore all the headline-grabbing price tags; the system wants a fair-market figure a typical buyer would pay today. Concentrate on the net value after subtracting approved debts when you work out your wealth position.
And if you’ve borrowed informally – say, from a friend – expect questions and be ready to show you’ve treated it like real finance.
Lastly, if you live in the UK and decide to sell your French home, French rules on capital gains will still apply. So, at the time of closing, your notaire calculates the gain and collects the tax, which definitely helps you keep the cash flow simple.
And if you qualify for a main-home exemption or another special rule, flag it up early so the paperwork lines up. It’s fairly easy to feel swamped with all this paperwork, so we suggest shrinking the task down:
If you want a simple way to keep valuations and receipts in one place, consider Upscore’s Finance Passport! It also helps you secure a lifetime mortgage in France effortlessly by letting you compare multiple lenders to make sure you get the best possible deal – all for free!
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