Did you know that it is possible to reduce or even temporarily waive your property tax? Some local authorities offer full or partial exemptions, provided that you improve the energy performance of your home.
According to the National Union of Property Owners (UNPI), property taxes have risen by an average of 20% in France between 2018 and 2023. Faced with this increase, the high cost of energy renovations can be a double whammy for homeowners. However, a property tax exemption can ease the bill. You still need to check whether your local authority applies this measure.
For owner-occupiers and landlords
Since 2007, local authorities have been able to grant property tax exemptions ranging from 50% to 100% to owner-occupiers and landlords. This applies to both primary and secondary residences.
It comes into effect the year after the work is carried out, provided that the local authority has passed a resolution before 1 October of the previous year. Once the exemption has been granted, it can only be renewed for the same property after a period of 10 years.
What are the conditions?
The property must have been built before 1ᵉʳ January 1989. The work undertaken must represent a minimum investment of €10,000 over one year or €15,000 spread over three years. These amounts are calculated excluding labour costs and inclusive of all taxes (TTC).
What kind of work is involved?
This includes the installation of heating or hot water production systems using renewable energy, improving thermal insulation, connecting to heating or cooling networks supplied mainly by renewable energy, or removing oil tanks, etc.
The work must meet the criteria set out in article 18 bis of appendix IV of the French General Tax Code (Code général des impôts).
The property tax exemption will be temporary, for a period of three years.
How do you qualify?
To obtain this exemption, it is essential to contact your local council to check that it applies this provision. Next, a declaration on plain paper must be sent to the tax department before 1ᵉʳ January of the year in which the exemption is sought. This document must give precise information about the property, such as its completion date, and include supporting documents detailing the nature and cost of the work undertaken.
Translated with DeepL.com (free version)
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