Paris Property and Housing Tax for Foreign Homebuyers

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That’s it, you've decided to make the big leap and to buy your dream apartment in Paris, your home sweet home away from your home country in the United States, Australia or elsewhere, to come and enjoy Paris.

Your personal Parisian home, to be enjoyed and not rented nor lent to anyone else.

You are only planning on spending a few leisurely months per year in Paris and to get back to your usual home in the United States, Australia or elsewhere, when wanted or needed.

This could be it, without any red tape nor administrative hassle…

Well, the French tax services have a way of taking an interest, as soon as you may have a link with France:

as owner of real estate in Paris, you will be liable for Property Tax (“Taxe Foncière”), and

as occupant of a secondary residence in Paris, you will be liable for Housing Tax (“taxe d’habitation”).

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🇫🇷 The Property Tax ("Taxe Foncière") 🇫🇷

All property owners are liable for the property tax ("taxe foncière"), which is calculated based on various factors.

🥐 How is the Property Tax Calculated?

The property tax is a tax levied on the cadastral rental value of real estate. Its calculation is complex and relies on several factors.

First, the cadastral rental value is determined by tax authorities and corresponds to the theoretical rental value of the property, i.e., the rent the property could generate if rented. This rental value is periodically reassessed to account for the evolution of the real estate market.

Once the cadastral rental value is determined, it is subject to deductions that vary depending on the nature of the property. For example, primary residences benefit from larger deductions than secondary residences or non-residential properties. Additionally, certain exemptions may apply based on the owner's geographical location or the use of the property, such as exemptions for individuals over 75 years old.

After accounting for deductions, the net rental value is multiplied by the tax rate set by the municipality where the property is located.

In addition to the municipal rate, there may be additional rates set by other local authorities, such as the department or region.

Finally, the property tax may also be subject to various additional taxes and fees, such as the household waste removal tax or the tax on commercial surfaces. These taxes are generally calculated based on the cadastral rental value of the property.

🥐 The Property Tax in Paris

In Paris, the property tax is at 13.5%, compared to an average of 41.61% in major French cities. In 2023, despite an impressive increase in the property tax of about 52%, Paris remains low in the ranking of French property tax rates.

This exceptionally high increase in Paris property tax was due to the elimination of the residence tax ("taxe d'habitation") by the Macron government, coupled with inflation, to which cadastral rental values are indexed.

🥐 How Much Property Tax Would You Pay in 2025 For a Paris Home (rough estimate):

40m2 (430 square feet) apartment : approximately 850 Euros annually
80m2 (860 square feet) apartment: approximately 1600 Euros annually
100m2 (1076 square feet) apartment: approximately 2000 Euros annually

🥐 When is the Property Tax Owed?

The property tax is owed by the owner of the property as of January 1st of the tax year, and it is typically paid during the month of October. Owners have the option to pay in monthly installments.

Note: I always ask the seller or realtor to show me the current Property Tax Statement from the onset so that my clients know what to expect early on.

🇫🇷 The Housing Tax ("Taxe d'Habitation") 🇫🇷

As occupant of a secondary residence in Paris, you will be liable for housing tax (“taxe d’habitation”).

How much housing tax will you have to pay for a secondary home in Paris ?

The housing tax is calculated based on the rental value recorded in the land registry of the property and its outbuildings, by applying a rate voted by the local authorities every year.

For example, for a secondary home in Paris, with a rental value of 2000 Euros, the taxe d’habitation in 2023 was approximately 660 Euros.

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🇫🇷 As for the formalities 🇫🇷

after the purchase is finalized, you would need to get in touch with the local tax service, to get your own personal tax number,

you could then create your personal Internet space on the official French tax website,

on the said website, you could then inform the services that your new home is a secondary home, which would lead to the payment of housing tax.

If you do not, or mention that this residence is your “main residence”, as it is your only one in France, this could lead to questions about your tax residence, with more dramatic consequences.

When my clients wish to consult a French tax lawyer regarding their specific situation, I recommend a reputable, English-speaking professional. If needed, she collaborates with my clients’ tax lawyer in their country of residence. This is part of the comprehensive service Tomette Paris® provides to its clients.

Tomette Paris® offers a comprehensive array of services through reliable partners (real estate, financial, immigration...) to turn your Parisian dream into reality...with total peace of mind!

🥐 🇫🇷 You Dream Paris, Let's Make It Happen! 🥐 🇫🇷