The French government has imposed a new obligation on all property owners, whether individuals or legal entities, to declare their real estate assets on the website Impots.gouv.fr in the “Manage my real estate” section by June 30th, 2023. All properties must be declared, whether they are occupied as primary or secondary residences, rented empty or furnished, occupied for free, or vacant. This requirement applies to all properties, including basements, garages, and parking spaces. Failure to comply with the new obligation will result in a fine of €150 per undeclared property. The government’s objective is to determine the status of each property and whether it is vacant, allowing them to levy taxes more accurately.

The inquisition is intensifying. It is no longer enough to subject real estate assets to wealth tax, to impose heavier taxes on income from property than on financial income (for the wealthiest taxpayers, the rate can reach 62.8%, including social security contributions).

The landlord must identify the occupants

If a property is rented, the landlord must indicate the identity of the occupants, while for vacant properties, the owner must state when it became vacant. For seasonal rentals, the owner must provide details about the start of the rental period and the management arrangements of the property. However, landlords are not required to declare the rental amount or property value.

The declaration will help identify vacant properties and allow their owners to be taxed accordingly if they are located in a municipality with over 50,000 inhabitants identified as having a significant imbalance between the supply and demand for housing. In 2022, the tax amount is equal to 17% of the rental value for the first year of vacancy, then 34% of the rent amount for subsequent years.

According to the Direction Générale des Finances Publiques (DGFIP), there are around 73 million properties in France for residential use, with 34 million owners. The government justifies this new requirement as necessary for identifying the status of each property to determine who should pay the housing tax following the removal of the tax for primary residences.

The question remains whether we have entered a new era, given that traditional reasoning believed that higher interest rates would curtail inflation by triggering a recession. However, inflation has continued to rise, and the price has surprisingly increased, making it challenging for central banks to contain inflation. Despite the challenging inflation rate, the economy is still performing well globally, with countries like the US, Germany and China showing signs of growth.

Flat-rate for undeclared assets

The declaration does not have to be renewed every year. It only needs to be corrected in the event of a change in circumstances. In case of omission or error, owners will be subject to a flat-rate fine of 150 euros per undeclared premises. The administration justifies this new obligation by the need to know the status of the accommodation in order to determine who still has to pay the residence tax since it was abolished for primary residences. According to the Directorate-General of Public Finances (DGFIP), there are 73 million residential premises in France, for around 34 million owners.

The declaration will also make it possible to identify vacant properties and apply the tax of the same name to their owners if the property is located in a municipality with more than 50,000 inhabitants identified as having a strong imbalance between supply and demand for housing. For 2022, its amount is equal to 17% of the rental value if it is the first year of vacancy, then 34% of the rent amount for subsequent years.

Support number

If you have any questions or difficulties filling out the declaration, you can contact the assistance number for individual users at 0 809 401 401 (non-premium rate number) or the tax service via secure messaging or the contact details listed in the “Contact and Appointments” section.