New property tax declaration in France 2023/2024 for French homeowners: step-by-step guide - FrenchEntrée

The Declaration of Occupation is a new tax declaration in France that all property owners are required to fill out starting in 2023. It records the occupancy status of their property. This report is a one-time requirement and is mandatory for all property owners in France, including owners of secondary homes and non-residents, who typically do not need to file a tax declaration in France.What is the need for this new declaration?In 2023, the Taxe d'Habitation was abolished for all primary residences. To determine who will be subject to the tax in the future, French tax authorities have established a mandatory procedure for providing information about the occupancy status of all residential properties. The Taxe d'Habitation will still apply to secondary homes and unoccupied properties, and the new declaration will help ensure the correct calculation of the tax for such properties. This document is included in Article 1418 of the General Tax Code and must be completed by all owners for each property, including parking spaces, basements, outbuildings, and more.

Who is required to fill out the d’Occupation declaration?A new tax document applies to all property owners in France, including owners of secondary homes, landlords, and real estate investors. If you own any property in France, whether you live in it, use it as a second home, rent it out, or even if you do not pay taxes in France, you are required to complete this declaration.Please note that submitting this document does not necessarily lead to the payment of income tax in France or the need to file a tax return.

Who doesn't need to fill out the form?Exceptions are made for owners of commercial real estate and businesses, such as stores or hotels, that operate on a permanent basis, as these properties are not subject to the Taxe d'Habitation since they are registered as businesses. However, this exception does not apply in cases where your property is a secondary home or temporary accommodation that is occasionally rented out and not registered as a business.

Who is supposed to fill out the form in 2024?If you have already filled out the declaration in 2023 and the status of your property has not changed, you do not need to fill out a new form. However, if you have become a new property owner and have never completed this document, you will need to do so in 2024. Also, if you have a property and did not fill out the declaration last year for any reason, you will need to do it this year (note that tax authorities were understanding of the difficulties some owners faced last year, but they may be less lenient this year, and penalties are in place for non-compliance!). If you previously filled out the form but the status of your property has changed, you are required to reflect that — for example, if you lived in your property last year but have now returned to the UK and are using it as a vacation home, or if the property was previously used as a second home and is now being rented out on a permanent basis.

Message about employment status changeNow, any changes in the "employment" status of real estate as of January 1st of each year (i.e., whether it is a primary residence or a second home) must be reported by June 30th of the same year. If there are no changes, there is no need to resubmit the declaration.

What needs to be done in 2024?If you need to fill out the d’Occupation declaration form, it must be submitted by June 30, 2024, at the latest. You will need to complete a separate document for each of your properties. This can be done online by logging into your personal account on the impots.gouv.fr website. A paper version of the form will also be available for 2024.