How to Pay Your Property Taxes (and other French Taxes)

Paris Snowman by Patty Sadauskas The Carré d’Or apartment in Nice Nice in the Rain – by Erica Simone Tax Bills Issuance Dates 2017 Illustration by RudeBaguette.com

If you read yesterday’s Parler Nice Nouvellettre®, In Search for Property Outside of a Winter Wonderland, then you already know I’m here in Nice missing the massive snow dump on Paris while working with clients to find a “pied-à-terre” in the Riviera city. While Paris is under seige of snow, Nice is getting nicer by the moment as sun is predicted for the entire weekend.
 
Our clients ended up opting for location vs space, having made an offer yesterday on an apartment in the Carré d’Or, about two blocks from the beach in the heart of it all, steps from absolutely everything! We all think their decision was a really wise one, and we now await an acceptance from the seller. Keep your fingers crossed for good news!

Meanwhile, several of our non-resident clients who have a property in France have had a bit of anxiety over the taxes due on their apartments and have written with questions:

* Will the tax bills be sent to the apartment?
* When is Taxe d’Habitation sent?
* When is it due?
* Is it possible to set up tax payments by automatic debit or are they paid by check?
* And where would the tax office be located? Is it specific to the apartment address?
* If the payment is delinquent, what happens?
* Are the taxes that are paid in France deductible on our US tax return?

If you have questions like these, don’t hesitate to “Google” the answers, but let’s see if we can address the questions and answer most of these for you!:

First off, 80% of the French will be totally exempt from the Taxe d’Habitation in 2020. To be a beneficiary of the housing tax reforms promised by Emmanuel Macron during the electoral campaign, it is necessary to report income in France of less than 27,000 euros. This likely doesn’t apply to you at all, if you are not tax resident in France. Nonetheless, 100% of the taxpayers for 2018 will continue to pay the housing tax.

Included in the bill are contributions to the public audiovisual fund (contribution à l’audiovisuel public) also known as the audiovisual license fee (redevance audiovisuelle). If you have a television or an equivalent device in your property, this contribution is mandatory. If you do not you must specify this on your income tax declaration to be exempted. In 2016, the contribution was set at €137 per year in mainland France and €88 in the overseas territories.

* Will the tax bills be sent to the apartment?

Normally yes, unless you request they be sent to another address.

* When is Taxe d’Habitation sent?

The tax authorities sent out the bills for the year 2017 in the Fall. This tax is payable by the person who inhabits the property on January 1st, yet the bill arrives many months later.

* When is it due?

The deadline for the payment of the tax is listed on the notice you receive in the fall. The deadline for payment of the 2017 housing tax was Wednesday, November 15, 2017 at midnight for primary residences, as well as for certain second homes. The payment deadline was extended to Monday, November 20, 2017 for individuals who choose to pay their housing tax online. For the majority of occasional usage accommodations, the payment deadline was Friday, December 15, 2017.

* Is it possible to set up tax payments by automatic debit or are they paid my check?

You have several ways to pay the housing tax and all other French taxes.

1. Automatic withdrawal from you bank account. If you subscribe, your bank account is debited 10 days after the deadline of payment indicated on your invoice.

2. You may opt for a monthly deduction. In this case, you are charged on the 15th of each month (or the following 1st working day if the 15th falls on a Saturday, a Sunday or a public holiday). You have until June 30, 2017 to subscribe to the monthly deduction.

3. You may make a payment on the tax website or via the app on a tablet or smartphone. Users who choose this method of payment usually have a period of 5 additional days to pay the amount of their housing tax. They had until Monday, November 20th for 2017 housing taxes to pay before Wednesday, November 15th and until December 20th for housing taxes to be paid before December 15th. Another advantage of this method is that it’s debited 10 days after the deadline for payment of tax.

4. You may just want to use a traditional means of payment such as cash limited to up to 300 euros, by bank transfer, or by Interbank Payments, to which must be attached a RIB (Relevé d’Identité Bancaire).

* If the payment is delinquent, what happens?

Taxpayers who have not settled the tax balance on time will pay a 10% penalty, but still have a chance of avoiding the 10% penalty. “Faulty” users, as the tax authorities call them, will receive a reminder letter (or a formal notice to pay if they are already known for the same breaches), informing them of the amount of the tax due and of the amount of the penalty. If they do not comply within 30 days of receiving the notice, a formal notice is sent to them to pay. They then have eight days to react. Beyond this period, they expose themselves to prosecution.

* Are the taxes that are paid in France deductible on your US tax return?

Yes! You can claim a credit only for foreign taxes that are imposed on you by a foreign country or U.S. possession. See irs.gov/individuals/international-taxpayers for more information.

* Where would the tax office be located? Is it specific to the apartment address?

The French government prefers you do not visit their offices! They are doing everything possible to encourage online use of their system. Here’s how you go online to change your mailing address.

And be sure to visit impots.gouv.fr/ to create your personal account and manage the tax payments.

A bientôt,

Adrian Leeds
Adrian Leeds Group

(in Nice)

Respond to Adrian:
[email protected]

 

 

  

 

 

P.S. To all my friends of Parler Paris and French Property Insider, I make Le Matisse available for short to medium stays while I’m not using it. Those who have already stayed here have found it as delightful as I do. So if you’re interested in getting to know Nice, Le Matisse is your answer. Visit the site or email [email protected] for more information and to book your stay. Then, you can say hello to Henri-le-Cactus for me!