Property taxes in France: Full guide for Americans

Buying property in France as an American comes with beautiful views and a rich culture, but also some serious tax responsibilities. Regardless of whether or not you actually live in your property, you'll have to pay property taxes in France.

The French tax system includes several levies you should know about: taxe foncière (the main property tax), taxe d'habitation (for second homes), and wealth tax for high-value properties. Plus, if you rent out your French property or sell it later, you'll face additional income and capital gains taxes.

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Table of contents
What are property taxes in France? What types of property taxes are there in France? How are property taxes calculated in France? How to pay property taxes in France? Are there any property tax exemptions in France? Penalties for not complying with property tax rules in France Frequently asked questions

What are property taxes in France?

Property taxes in France are mandatory payments that fund local government services like roads, schools, and municipal facilities. These taxes apply to anyone who owns real estate in France, including foreign nationals who don't live there year-round.

💡 As an American property owner in France, you'll typically be responsible for several types of taxes:¹
Taxe foncière on the property itself Taxe d'habitation if it's your second home The IFI wealth tax for expensive properties Income tax on any rental earnings Capital gains tax if you sell

If you're considering moving to France and are confused by all the different taxes you'll have to pay, get in touch with your local French tax authorities to figure out which taxes apply to your situation.

Property taxes in France by regions

French property tax rates aren't set nationally. They're decided locally. Each year, towns, départements, and regional cooperation groups vote on their tax rates.²

This means that your tax bill can vary a lot depending on where your French real estate is located.

What types of property taxes are there in France?

Taxe Foncière

Nearly every property owner in France pays is taxe foncière.

Your local tax office (Centre des Impôts Fonciers) calculates this annual tax based on a theoretical rental value of your property. It's based not on what you could rent it for today, but on rental values in a 1970 index, adjusted over time.¹

The tax assessment happens on January 1st, so whoever owns the property on that date gets the bill for the entire year.¹

Taxe d’Habitation

Taxe d'habitation only applies to properties that aren't your main residence. If you're an American with a vacation home in France, you'll likely pay this tax alongside your taxe foncière.

The calculation works similarly to taxe foncière and is based on that same theoretical rental value system. There are also a few different exemptions and thresholds that can adjust your final bill.

Wealth tax

France's property wealth tax, called Impôt sur la Fortune Immobilière (IFI), targets people with substantial property portfolios. You'll face this tax if your real estate assets are worth 1.3 million EUR or more.¹

The system starts assessing properties valued at 800,000 EUR and above, but you only owe tax once your total portfolio hits the 1.3 million EUR threshold.¹

Tax rates start at 0.5% for properties worth up to 1.3 million EUR and climb progressively to 1.5% for portfolios worth 10 million EUR or more.¹

⚠️ If you're a non-resident in France, your tax obligations will typically only include your French properties. If you're a French resident for tax purposes, you'll get assessed on your worldwide real estate holdings.

However, this doesn't happen right away. Once you become a French tax resident, you get a 5-year grace period where only your French properties count toward IFI calculations.¹

Rental income taxes

If you rent out your French property, that income gets taxed similarly to regular earnings.

French income tax is progressive, and it starts at 11% for annual income above 11,294 EUR. For high earners making over 177,106 EUR, it's a whopping 45%, plus an additional social charge of 17.2%.¹

Furnished rental properties also face a business tax called CFE (Cotisation Foncière des Entreprises). This annual tax applies to anyone running furnished rentals as a business activity, and it's calculated based on the property's rental value.

Small-scale landlords earning under 5,000 EUR annually can usually claim an exemption, and unfurnished holiday rentals don't trigger CFE charges.¹

Capital gains tax

Selling your main home in France typically won't cost you capital gains tax because primary residences are exempt. Sometimes, it's possible to qualify for this exemption if you moved out within the past 12 months, depending on your situation.¹

Investment properties and second homes are subject to capital gains tax, though. It applies to any profit above your original purchase price at a standard rate of 19%, plus social charges of 17.2%.¹

Large gains trigger additional surcharges, with 2% extra for gains over 50,000 EUR and 6% for gains exceeding 260,000 EUR. Total capital gains tax maxes out at 42.2%.¹

How are property taxes calculated in France?

For taxe foncière, you'll typically find an estimate in property listings when you're house hunting. The average works out to roughly 10 EUR to 20 EUR per square meter annually, with French homeowners paying an average of 298 EUR.¹

Taxe d'habitation follows a similar calculation method.

Wealth tax (IFI) uses a progressive bracket system with rates ranging from 0% to 1.5%. Even though you only start paying once your property portfolio exceeds 1.3 million EUR, the calculation begins at 800,000 EUR. Here's what to expect:

Property value	Tax rate³
Under 800,000 EUR	0%
800,000 EUR to 1,300,000 EUR	0.5%
1,300,000 EUR to 2,570,000 EUR	0.7%
2,570,000 EUR to 5,000,000 EUR	1%
5,000,000 EUR to 10,000,000 EUR	1.25%
Over 10,000,000 EUR	1.5%

The progressive structure means you only pay the higher rates on the portion of your portfolio that falls within each bracket, not on the entire value.

How to pay property taxes in France?

The French tax authorities recommend using their online payment system through your personal account to make sure that the payments reach the correct department.⁴

For amounts over 300 EUR, you must pay online through impots.gouv.fr or their mobile app using any bank account within the Single European Payment Area (SEPA), which includes the 27 EU countries plus the UK, Iceland, Norway, Switzerland, and other European nations.⁴

For 300 EUR or less, you can pay online, by check from a French bank, or by bank card/cash at participating tobacco shops if your tax notice includes a QR code.⁴

Local taxes like taxe foncière are handled by your regional tax department with similar payment options available. You can still use the impots.gouv.fr system.

Are there any property tax exemptions in France?

Yes, there are a few different ways to reduce your French property tax burden. For example:¹

• Residents over 75 who live in their primary residence and meet income requirements or receive certain state benefits don't pay taxe foncière
• New construction typically gets a 2-year exemption from property taxes
• Second-home owners with children can claim housing tax relief, with deductions of 10% to 15% for each dependent child

Other deductions and relief opportunities may exist depending on your situation, and it's a good idea to ask a French tax professional to help you identify exemptions you might qualify for.

Penalties for not complying with property tax rules in France

Late filing of French tax returns triggers penalties, and these penalties are based on how delayed your submission is and other factors:⁵

• 10% if you file before receiving a formal notice from the tax authorities
• 20% if you file within 30 days of receiving formal notice
• 40% if you fail to file within 30 days of formal notice
• 80% if tax authorities discover undeclared work or illegal activity

You may also face late interest charges on unpaid tax bills.

Even if you don't owe French income tax, you must still file a declaration to receive a notice of non-taxation. However, you won't face penalties for filing this declaration late.

Frequently asked questions

What property taxes do I have to pay in France as a US citizen?

As an American property owner in France, you'll pay the same taxes as any other foreign national. This includes taxe foncière (the main annual property tax), taxe d'habitation if your French property is your second home, and potentially the wealth tax (IFI) if your portfolio exceeds 1.3 million EUR.¹

You'll also face income tax on any rental earnings and capital gains tax when you sell, unless it's your primary residence.

Is there an annual property tax in France?

Yes, France has annual property taxes. Taxe foncière is paid every year by all property owners, typically averaging 10 EUR to 20 EUR per square meter.¹ Second home owners also pay taxe d'habitation annually.

Can I live in France permanently if I buy a house?

No, buying a property in France doesn't automatically give you residency rights and allow you to live there long-term. You'll still need to apply for the appropriate visa or residency permit based on your circumstances, such as through work or marriage. There is no France Golden Visa program through real estate.

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Sources

1. Chase Buchanan - Property Tax in France
2. Embassy of France in the United States - French Local Taxes
3. FranceTaxLaw - What Is French Wealth Tax?
4. French Government - Methods of Payment
5. Property Tax International - French Property Tax

Sources checked 09/19/2025