Housing: focus on the taxes to be paid by owners

Are you an owner or about to become one and are you looking for advice for your real estate purchase? What if you start by looking at the taxes you have to pay when you buy a home? We take stock for you.

Property tax, household waste removal tax and housing tax

Among the taxes that the owner must pay, we find the property tax, the household waste removal tax and the housing tax.

Property tax

The property tax on built properties only concerns taxpayers who own a home in 1^Er January of the tax year. You do not live in the property you own, but rent it? You will still have to pay property tax.If you become an owner during the year, you will only have to pay this tax from the following year.There are temporary exemptions for certain buildings, do not hesitate to find out if you can benefit from them. It would be a shame to miss out on the opportunity to save money!

The household waste removal tax

In France, some municipalities collecting household waste have implemented a household waste removal tax. If the one in which you own a property is one of them, you will therefore have to pay this tax. Note: it is borne by the tenant. If you have rented your property, you will therefore not have to pay it. Good news!

Housing tax

Housing tax is not just for homeowners. Thus, everyone is responsible for the accommodation occupied at 1^Er January of the tax year.You have owned a home since the 1^Er May 2015? You do not have to pay housing tax for this one for the current year. However, you will have to pay it the following year. Also note that you will have to pay housing tax for the accommodation you previously occupied (here until 1^Er May 2015) .How is this tax calculated? Depending on the rental value of your property. Are taken into account: the area of your home, the number of rooms, its age, the presence or absence of a courtyard, its garage... Will the housing tax be abolished or replaced? Note: it is possible to be exempt (partially or in full) from this tax. Once again, do not hesitate to inquire about this.

Focus on the ISF and the economic and social contribution

The ISF does not concern all owners, simply those whose taxable assets exceed a sum fixed at 1^Er January of each year. As for the economic and social contribution, it only concerns furnished renters.

The ISF (wealth tax)

“The ISF concerns all assets (movable and immovable), rights (usufruct, rights of use...) and values (shares, titles...) composing your assets on 1^Er January.”What are the properties to be declared? Buildings built for personal use or rented (houses, apartments, etc.), buildings that are part of historical monuments or even unbuilt buildings. What about the movable assets to be declared? Affected are: furniture (furniture and equipment), various motorized devices (cars, motorcycles, boats, etc.), jewelry, gold and precious stones or even horses (racing and saddle) .Among the rights to be declared, we can cite usufructs, rights of use, rights of use, industrial property rights as well as literary or artistic property rights. Likewise, your investments and liquidity must be declared. Finally, note that there are deductible debts (tax debts, inheritance debts, etc.) .Advice: do not underestimate the value of your assets, you could risk a tax penalty.

The economic and territorial contribution

Do you own a furnished property that you have rented out? Know that “furnished renters, whether professional or not, are liable for the territorial economic contribution” (article 1447 of the General Tax Code). Indeed, according to article 1447 of the General Tax Code, “the activities of renting or subletting furnished buildings are deemed to be carried out on a professional basis”.The economic and territorial contribution includes the CFE (business property tax) and the CVAE (business value added contribution). In some cases, an exemption is possible. Do you have several furnished rentals in different municipalities? You will then have to fill out one declaration per municipality, as it is a local tax.

Other taxes to be paid What you need to know: VAT and annual office tax

Everyone has heard about VAT. But do you know the annual tax on offices, specific to the Île-de-France region?

Value added tax (VAT)

If you are an owner and you rent empty premises for commercial, professional or mixed use, you can choose to be subject to VAT. This option is possible, regardless of whether the tenant is subject to VAT or not. Namely about seasonal rentals: they are generally exempt from VAT. But there are exceptions, especially when the rental includes one of the following services: breakfast, regular cleaning of the premises, supply of household linen and reception of customers.The declaration and payment of VAT by the lessor are normally monthly. However, if the annual VAT amount is less than 4,000 euros, the declaration and payment may be quarterly.

Annual office tax

Established since 1990 and applied in Île-de-France only, the annual office tax is due “as soon as you rent business premises and the surface area of the rented premises is greater than or equal to 100 m² ” .In the context of mixed leases, the area to be considered is that allocated for office use. This tax must be declared and paid by the lessor before 1^Er March of each year. The owner may ask the tenant to pay for it (for mixed premises for example), but a clause must then appear in the contract. Do you need advice for your real estate purchase? Do not hesitate to contact us!