Property tax in Paris: what every foreign owner needs to know

The pleasant surprise we regularly deliver to our international clients: property tax (taxe fonciere) in Paris is one of the lowest among major world cities. A New York owner expecting Manhattan-level property taxes is pleasantly surprised when they receive their first assessment, often ten times lower than what they were paying in the United States. But the apparent simplicity of the amount should not mask the particularities of the French system, especially when managing it from abroad.

Who has to pay property tax in France?

Every owner of real estate in France on 1 January owes it for the whole year, regardless of nationality or tax residence, and whether the property is occupied, rented or vacant. The property tax on built properties (taxe fonciere sur les proprietes baties) is an annual local tax. If you own an apartment in Paris on January 1st of the year, you owe property tax for the entire year, even if you sell the property during the year. In the event of a sale, a pro-rata is customarily calculated between seller and buyer at the time of signing the final deed, but this is a convention between the parties, not a legal obligation.

The tax is due whether the property is occupied, rented or vacant. There is no exemption linked to use, unlike the former residence tax (taxe d’habitation), which has been progressively abolished for primary residences and now only applies to secondary residences and vacant properties.

How is property tax calculated in Paris?

The Paris municipal rate, around 20.5% in 2026, is applied to 50% of the property’s cadastral rental value. The calculation therefore rests on a concept unique to the French tax system: the cadastral rental value (valeur locative cadastrale). This theoretical value, set by the tax administration, is meant to represent the annual rent the property could generate under normal conditions. In practice, cadastral rental values date from the 1970s and are far removed from actual rents, often 50 to 70% lower. An apartment that would rent for 2,000 euros/month in Paris may have a cadastral rental value of 5,000 euros/year.

Property tax is calculated by applying a rate voted by local authorities to 50% of this cadastral rental value (the 50% flat-rate deduction is intended to cover ownership costs). In Paris, the municipal rate is approximately 20.5% in 2026, following the 52% rise voted by the Conseil de Paris in October 2023, which took it from around 13.5% to 20.5%. Despite that increase, Paris remains in the lower range among major French cities, owing to the richness of the Parisian tax base. Additional taxes are added (taxe spéciale d’équipement, taxe GEMAPI).

In concrete terms for an owner: a 25 sqm studio in the 10th arrondissement generates property tax of approximately 500 to 800 euros/year. A three-room apartment of 65 sqm in the 7th arrondissement: 1,200 to 2,000 euros. A large apartment of 120 sqm in the 16th: 2,500 to 4,000 euros. These amounts vary depending on the building’s construction year, facilities and any declared works, but the ranges provide a reliable order of magnitude.

What is the TEOM and who ultimately pays it?

The TEOM, Taxe d’Enlevement des Ordures Menageres (household waste collection tax), represents 200 to 500 euros/year in Paris depending on the property size, and a landlord can pass it on to the tenant. It is collected together with property tax and appears on the same tax notice. This is a tax that landlords can pass on to tenants as part of recoverable service charges, a useful detail if your Parisian apartment is a buy-to-let investment.

Is Paris property tax high compared with New York or London?

No: for an equivalent 80 sqm flat, Paris charges 1,500 to 2,500 euros where New York demands 12,000 to 18,000 dollars, a ratio of 1 to 7 or 8; London sits in between, at 1,500-3,500 pounds. For a buyer accustomed to Anglo-Saxon systems, the comparison is striking.

Paris vs New York

In New York, annual property tax represents approximately 1 to 1.5% of the property’s assessed value. For an 80 sqm apartment estimated at 1.2 million dollars in Manhattan, annual property tax easily exceeds 12,000 to 18,000 dollars. In Paris, an equivalent property, 80 sqm in a good arrondissement, market value of 900,000 to 1 million euros, generates property tax of 1,500 to 2,500 euros. The ratio is 1 to 7 or 8.

Paris vs London

London’s council tax varies by band (value bracket) and by borough. For an apartment in central boroughs (Westminster, Kensington), council tax sits between 1,500 and 3,500 pounds/year. Closer to Parisian levels, but with a difference: council tax is paid by the occupier (owner or tenant), while French property tax is always the owner’s responsibility.

Paris vs Geneva and Zurich

In Switzerland, cantonal property tax is very moderate, 0.1 to 0.3% of the property’s fiscal value, but an imputed rental value tax is added, treating the notional rent as income even if the property is not let. This concept does not exist in France for owner-occupiers.

The conclusion is clear: French property taxation for non-residents has its particularities (capital gains, wealth tax, rental income), but the annual property tax is not a heavy budget item compared to competing markets.

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When is property tax issued and when is it due?

The notice appears on impots.gouv.fr in August or September, and payment falls due in mid-October online, late September by post. The cycle is predictable and identical every year. In August or September, the property tax notice is available in your personal space on impots.gouv.fr. The payment deadline is mid-October for online payment, late September for postal payment. If you have opted for monthly payments (mensualisation), deductions run from January to October, with an adjustment in November.

For a non-resident, the key concern is receiving the notice. If your French tax address is the apartment address and you do not live there, the tax administration’s correspondence may go unanswered for weeks. Two solutions: register a foreign correspondence address in your impots.gouv.fr account, or activate email notifications on the site. The digital version of the notice is available online as soon as it is issued, making it the most reliable method for an owner based abroad.

How do you pay property tax from abroad?

Four routes exist: automatic debit from a French account, by far the simplest, SEPA transfer from a European account, online card payment on impots.gouv.fr, and international transfer for non-SEPA accounts. Automatic debit remains the option we recommend to non-resident clients.

Automatic debit from a French account

This is the simplest solution. You authorise the tax administration to debit directly from your French bank account. Registration is done online at impots.gouv.fr. The deduction is made 10 days after the payment deadline (giving you a short additional period). To activate the debit, you need your French tax number and the account details (RIB) of the account to be debited.

SEPA transfer

From a European bank account (SEPA zone), you can make a direct transfer to the French Treasury. The bank details appear on the tax notice. Mandatory reference: your tax number and the notice reference. SEPA transfers are free or nearly free within the eurozone.

Online payment

The site impots.gouv.fr accepts payment by bank card or one-off debit. The interface is in French only, an obstacle for some of our English-speaking clients. First-time login requires creating a personal account with your tax number, your notice number and your reference tax income (shown on your latest French tax notice).

The case of non-SEPA accounts

If your only bank account is in the United States, Asia or the Middle East, an international transfer to the French Treasury is technically possible but impractical (transfer fees, delays, currency risk). The recommended solution is to maintain a French bank account even after leaving France, which is what we systematically advise our clients when buying as a foreign national.

Is property tax deductible from rental income?

Yes: under the regime reel (itemised) system, property tax is fully deductible from rental income, and the TEOM is recoverable from the tenant. If your Parisian apartment is rented out, property tax therefore reduces your taxable base. It reduces the net taxable income. The TEOM, however, is recoverable from the tenant as part of recoverable service charges defined by the 1987 decree.

For a non-resident owner receiving rental income in France, property tax is factored into the overall calculation of the real return on investment. On a 50 sqm apartment rented at 1,400 euros/month in the 11th arrondissement (average price: 10,800 euros/sqm), property tax of 800-1,200 euros represents 5 to 7% of the 16,800 euro gross annual rent, a modest but necessary item to include.

How much does owning a Paris property cost each year?

Between 1 and 2% of the property’s value per year, including property tax, secondary residence tax, co-ownership charges, insurance and management fees. Property tax is therefore just one element of the annual cost of owning a Parisian property. For a non-resident owner, the full picture includes property tax (500 to 4,000 euros), secondary residence tax (if applicable, 800 to 3,000 euros), co-ownership charges (2,000 to 8,000 euros depending on the building and services), home insurance (200 to 600 euros), and management fees if the property is rented (6 to 10% of rents). The total typically represents 1 to 2% of the property’s value per year, a level of ownership costs that remains competitive internationally.

At Home Select, we support our clients well beyond the transaction: our 16 property hunters have developed since 2011 a network of property managers, accountants and tax advisors who master the specificities of non-resident ownership. The year-end checklist for foreign owners that we detail in another guide completes this annual tax overview.

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