Roche & Cie

Property taxation: The reform of the housing tax in France. who will be the big winners?

02 Nov 2017

réforme de la taxe d’habitation

The reform of the housing tax in France.

The housing tax is due on properties occupied on January 1 of the year, as owner or tenant.

For years, a reform of this tax has been on the table as it considered unsuitable in its method of calculation. For example, the rental values ​​used for its calculation sometimes date back to the 1970s.

Rather than a reform, the French President Emmanuel Macron had suggested the exemption of 80% of the French from this tax, and made this proposal one of his flagship reform.

MPs have recently adopted provisions that state that in three years, 80% of households will be completely exempt from the housing tax, or about 17 million French.

The reform will therefore be progressive: from 30% in 2018, to 65% in 2019 and 100% in 2020 for the households concerned.

The income ceilings to be respected in order to benefit from this measure are as follows:

  • for a single person, the reference tax income (obtained after a 10% reduction on real wages) must not exceed 27,000 euros and,
  • for a couple without children this threshold is 43,000 euros.
  • For a couple with a child, the ceiling is 49,000 euros and with two children, it is 54,000 euros.

The 2017 housing tax is therefore to be paid in full by November 15th. A delay of 5 days is granted to those regularizing their situation on the internet.

Cabinet Roche & Cie, English speaking accountant in Lyon, France.
Specialist in Real-Estate and Non-resident taxation.