Taxe d’habitation in France

4 Replies

Hello everyone. Can anyone explain how taxe d’habitation works?

I learned that the tenant pays it, when they occupy for long term. But I still cannot wrap my head around the calculation. But It is calculated on the basis of property value, or rent? And how much % are we talking about?

As far as I have learned, they say the calculation is complex. I would like to get just the rough idea.

It would be really helpful if some one could explain this.

Also, if someone has experience of investing in France or Europe, please let me know. I hope you’d be kind enough to let me pick your brain.

Hello Sam

the taxe d habitation is paid by the tenant of a house or appartment who is living there on 1st of january. 

the tax is managed locally, i.e each city will define their own rate so i cannot give you formula how to calculate it. the calculation is based on the potential rent of the house or appartment in this specific city. Short term lease like airbnb are exempt of the tax as there is no really a tenant all along the year. if you are house is empty but fully furnished, you should pay it as well. if your house is empty with nobody in it, you will not pay it, however after one year, most of big cities put another tax called "taxe sur les logements vacants" "empty house tax" to avoid inoccupancy.

Fabrice

@Fabrice Arbaudie

Bonjour Fabrice.

And thanks a lot for the answering my query! I post few questions here on BiggerPockets regarding real estate investment in France. Looks like there are very few people here who are based on France.

If you dont mind, can you tell me if you can refinance your investment property in France or not? Is it true that you can only refinance a property which is your principal residence?

That means the BRRRR doesn't quite work here.

It's more like, it's limited to BRRR.

Once again thank you so much for answering my question.

Bonne journée!

Sam

Hello Sam,

I cannot help you on this one. Refinance is not frequently used in France as opposed to US. I never tried it before so i dont have information about it. It may be feasible but at the end wheter you refinance it or you use a new loan to buy the new property, the bank will mainly look at your debt ratio and income first to say ok or not to give you the money.