In France, there are two main local taxes, called “taxe d’habitation” and “taxe foncière”. The rates of those taxes vary across the country, due to the varying rates of tax imposed by the regional and local authorities.
There is also another local tax called taxe d’enlèvement des ordures ménagères (TEOM).
Local Land Tax (taxe foncière)
This tax is (as a matter of French Law) required to be paid for the whole year by the person who is the owner of the property.
If the property were to be sold, it would be possible (at the time of the execution of the deed of conveyance and based on the demand of the previous year or alternatively when receiving the demand for the year concerned) to obtain a reimbursement (from the purchaser) of a pro-rata amount for the period between the date of completion and 31 December of the year concerned.
Thus, for example, if the deed of conveyance were to be executed in January the purchaser would reimburse to the vendor circa 11/12th of the tax in question to be paid for the full amount by the vendor.
If the property were to be sold, it would be possible (at the time of the execution of the deed of conveyance and based on the demand of the previous year or alternatively when receiving the demand for the year concerned) to obtain a reimbursement (from the purchaser) of a pro-rata amount for the period between the date of completion and 31 December of the year concerned.
Thus, for example, if the deed of conveyance were to be executed in January the purchaser would reimburse to the vendor circa 11/12th of the tax in question to be paid for the full amount by the vendor.
Local Occupancy Tax (taxe d’habitation)
This tax like the Land Tax is (as a matter of French Law) required to be paid for the whole year by the person who is the occupier of the property on 1 January of the year.
If a purchaser or an occupier were to purchase or move in a property on say 2 January, there would be no taxe d’habitation to be paid for the said year.
The tax is to be paid even if the property is not occupied.
It would be possible to apply for an exemption if the property were to be fully empty, subject to having no furniture or fittings inside.
It is not usual practice to have a pro-rata reimbursement in case of sale (unlike the taxe foncière).
If a purchaser or an occupier were to purchase or move in a property on say 2 January, there would be no taxe d’habitation to be paid for the said year.
The tax is to be paid even if the property is not occupied.
It would be possible to apply for an exemption if the property were to be fully empty, subject to having no furniture or fittings inside.
It is not usual practice to have a pro-rata reimbursement in case of sale (unlike the taxe foncière).
Taxe d’enlèvement d’ordures ménagères
The taxe d’enlèvement des ordures ménagères (TEOM) is the equivalent of a refuse collection fee.
The TEOM can sometimes be included in the “taxe foncière” (indicated with the letters TEOM on the tax bill received) or can arrive in a separate bill, once or even twice a year.
The TEOM can sometimes be included in the “taxe foncière” (indicated with the letters TEOM on the tax bill received) or can arrive in a separate bill, once or even twice a year.
