France Property Taxes ? Avoid Excessive Taxes on Your Home ...

There are two types of

property tax in France (similar to the UK council tax). These are:

Fonciere tax. This translates as ?land tax? but in fact is a tax on real estate of any kind (land, house, outbuildings, etc.).
??Taxe d?habitation . This translates is ?dwelling tax? or ?habitation tax? and is a tax on the property # in which you live. The first tax is paid

by the owner of the property and the second by the occupier. If you own the house # in which you live, then you pay both taxes. The amount of these taxes is deterministic mined mainly by the value of the property (specifically, the notional rental value, as mined by the tax authorities deterministic). The more valuable the property then the higher the taxes.

As these are local taxes, the amounts are so affected by local rates, the two equivalent properties may have different levels of taxes, where they are located Depending On . In essence, the notional rental value is multiplied by a rate for the local commune, a rate for the local department, a local rate for the region, plus 2.5% tax added on collection by the state government. The total of these four elements is the amount of tax due. The rates used for Taxe Fonciere is different that the rates used for Taxe d?habitation, so the two tax bills have different amounts. For each of these taxes, you will receive a notice from the tax office when they are due. You can either pay in a single payment, or in installments. If you buy a property part way through the year, the notaire handling the property purchase will normally collect from your account the amount due for the tax for the remainder Fonciere of the year. Checking property taxes before buying

Each of these two taxes can be thousand of euros, so if you are looking to buy a property it is worthwhile checking on the amount of these taxes before making an offer.

Some property owners want to enhance the value of a property (through an extension, major renovation, addition of a swimming pool or outbuilding) without fully declaring the work to the tax office. In this case, the taxes are based on the old value of the property rather than the current value. When a property is sold, the tax office will often request the new buyer to Provide information (via a form sent to the buyer in the year after purchase) on the property (as tested square meters, type of heating, presence of outbuildings or swimming pool) Which it will use to recalculate the property value for tax purposes. If you complete this form honestly (and to do otherwise is a serious offense legally!), And the previous owner has not fully declared all items, then you might find that both increase taxes once the form is processed Substantially by the tax office. This was the case when we purchased our renovated farmhouse, with the result that taxes jumped by over 50% once we submitted the Form.

Even more serious, property owners may do work without building permission. When the authorities find out about this, they may require that the work be demolished (eg if it is strongly contravenes building regulations). Alternatively, if the building work is allowed to remain, you will not only have to pay tax on the additional value provided but will be liable to additional punitive tax because of the work was done without building permission. . In some cases, you may be able to secure permissions and approvals for seeking work, do but not depend on it

Consequently, prior to buying a property or making a binding offer, it is advisable to:

Check the current level of these two property taxes. Ask to see the demand for the current tax year, rather than Depending on the verbal statement of the seller.
??Check that all elements of the property have had building permission and building approval. If you do not have time to check this before signing a contract, make sure that I effect a clause is added to the contract to this. Normally there is a period of at least several weeks between the initial contract and the final contract and you can use this time for yourself or your notaire to verify this clause has been met.
??Check that any work, extensions or additions to the property have been declared to the tax authorities and is included in the current tax calculation. If you do not contract have time to do this before making an offer, Ensure that there is a clause in the initial contract and have this verified before signing the final.
??If you are planning on doing major work, consider the implication of this to your annual tax bill and evaluate Whether you wish to make the property purchase on this basis. Building Plans and Taxes As discussed above

, any work Which enhances the value of a property is likely to result in a corresponding increase in both property taxes. Consequently, if you are considering major works, you will need to budget not only for the cost of these works, but also for a corresponding increase in the annual property taxes. If you are unsure of the amount of tax increase you will be liable for, your local tax office can provided guidance.

You are required to report any investigation work to the authorities (Centre of Taxation Fonciers or Bureau de Cadastre) within 90 days of completing the work. If you live in a village or countryside, the local mayor?s office can help you with the paperwork or any questions you might have. In towns or cities you can go to the local government offices (prefecture) for assistance. Exemptions and Reductions

There are a number of conditions # in which you may be entitled to a reduction in the taxes, or even complete exemption. If any of the following apply to you, you can apply to the local tax office for an Appropriate change to the taxes:

Age-based (eg over 75)
??Low income
??On disability pension
??Premises used for agricultural, business purposes, or student lodgings
??New properties may be eligible for an exemption for the first 2 years

If you feel that you are being charged the amount is incorrect, you can apply to the local tax office to have it changed.

Source: http://www.lovefinanceinfo.com/2012/03/france-property-taxes-avoid-excessive-taxes-on-your-home/?utm_source=rss&utm_medium=rss&utm_campaign=france-property-taxes-avoid-excessive-taxes-on-your-home

hazing colton harris moore hurd hurd christopher hitchens ron paul 2012 zynga stock