New build habitation tax - exemptions?

Hi there,

I have read a fair bit from numerous sources on line, but wanted to clarify my understanding. We built a new house (signed off October 2017 last year). I understand tax foncier is exempt for the first 2 years? But that habitation tax will still apply. We started to furnish the house in November and was able to stay for the first time on holiday then (it being a holiday home) as we reside currently in the Uk and are hoping to move there now later this year.

We have now received a bill for 2017 habitation tax in excess of €1200 euros

Are there expmtions or reductions for habitation tax at all?

Many thanks Emma

Hi Emma… and welcome to the Forum… we are a friendly lot and someone will chime in with a definitive response, I am sure…

Personally, I do not think there is any leeway for Homes once they are furnished… the owners become liable to pay the Habitation tax. French residents can be exempt according to income levels, but folk living abroad do not get any such exemption… sorry.

and with regard to Taxe Fonciere… I think you have to complete a special form within 90 days of the build being signed-off… in order to benefit from the 2 year exoneration…

I must say that your bill for Habitation (in excess of €1200 ) seems a little steep… but without details of the size of your new home… that is just a guess on my part.

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Normally taxe d’hab is charged to those who occupy the property on 1st Jan of that year (occupy doesn’t necessarily mean physically there). So curious as to why you’ve been charge for whole year if the place wasn’t capable of occupation until Oct…but no doubt someone will be along soon with the explanation.

As for the cost of it - are you perhaps in one of the areas that already has a 20% surcharge on second homes?

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I can’t find anything on taxe d’habitation , but this link explains the tax fonciere exemption

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Hi there

Thankyou for your reply. From reading up its does seem, as you say that if it’s habitable/furnished the new built aspect is irrelevant. We had ignorantly assumed both taxes for the house were expect for the first 2 years. It is quite a large property and with no reductions applied given our circumstances it may have to be something we accept. We have written to the sender if the bill to clarify the calculation.

It may be once we live there we can benefit from some reduction but given its our ‘second home’ at the moment and how they take a photo as of the 1.1.18 and look back seems we are liable for the full year of 2017. :frowning: I’ll keep you all updated and thankyou once again for your help and advice.

Emma x

Hi Emma
I would definitely query this ! It may be that new builds are treated differently but normally you only pay tax d’habitation if you are resident in the property as of 01.01. So if you move in in March 2017, you won’t be charged for 2017, the person who owned / rented the property before you will be liable and this is why when properties are sold, the taxes are often divvied up between buyer and seller. Hope this makes sense! X

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Hi Catherine, has it always been that taxe d’habitation is not paid unless you live in the property, ? we had a maison secondaire( now sold ) which we used for a few weeks a year only and we moved to another area to live permanently.

Certainly, in our area, the Mairie checks carefully that a property is empty of all furnishings, when/if the Owner seeks to Not be charged THab…

Also, it is no use emptying it out for 1st Jan and moving it all back-in a while later in the year…yes, folk have tried that dodge …and, in some instances, have been charged with “fraudulently seeking to avoid paying legitimate tax” (rough translation)

Sorry, I should have been clearer ! Resident or owner will have to pay - if the house is uninhabitable (i.e as in this case, not finished) then that is a different matter.

Ah! I understand ,I was just about to write off for a rebate :grin::blush:

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