The deadline for a new French tax declaration is fast approaching.
Everyone who owns a property in France must declare whether it’s their primary or secondary residence on the government tax website.
If this is you – act now before the final deadline of June 30, 2023.
Do you own a second home in Paris?
In January 2023, the French government abolished the taxe d’habitation (French Residence Tax). But only for those who live full-time in France in a primary residence.
This means if you own an apartment in Paris – or property anywhere in France – you’re still liable to pay the tax if it’s your secondary residence and you are not fiscally domiciled in France.
But to determine who must pay this tax, the government requires that all homeowners make a declaration to the tax authorities.
As reported on an official government website, this declaration is due soon.
Primary and secondary residences
All owners must fill in the form online and declare whether they have a primary or secondary residence in France.
But what’s the difference?
For tax purposes, a primary residence is your main home, where you live most of the time – more than six months a year.
A secondary residence would be your ‘holiday home’, including a furnished rental investment. But only residential properties, not business or commercial ones.
Either way, you must declare the status of your property. The government will then use this information to determine which taxes you’re liable for.
All homeowners need to fill in an online form on the ‘Manage My Real Estate’ area of the website impots.gouv.fr.
The website gives a toll-free number for any questions, along with a secure messaging system for online inquiries.
But remember – the final deadline to make the declaration is June 30, 2023.
Those who miss the deadline risk a fine of €150.
Why is this happening?
The old system used a paper questionnaire, sent out following the sale of a property.
This means any change of occupancy was only detected when the new owner received the slip. This caused delays and wasted resources.
The new online option offers fast and efficient reporting of each owner’s situation. It’s a move to an online-only system, like many aspects of modern life.
This is a one-time filing, not an annual one, unless you sell the property or your living circumstances change.
I’ve made the new French tax declaration – what next?
After making your declaration, the government will use the information to determine what tax is due.
For those with second homes, this is likely to be the taxe d’habitation.
But it is worth noting that this tax, along with occupancy tax, remains low compared to many other capital cities – including London and New York.
It’s something we have previously reported on in this blog.
Get in touch with 56Paris
If you have any questions about the new French tax declaration and owning a second home in Paris, we are here to help.
Feel free to get in touch with our team. We experts on all aspects of the property market here in the French capital.
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All information given in this blog is correct at the time of writing and is a guide only. At 56Paris, we always recommend consulting an accountant or tax professional for advice on your own assets and tax situation.