New reporting obligations for real estate owners in 2023
As property owners will be exempt from the council tax on their main residence from January 2023, the French tax authorities have decided to impose a new obligation on property owners to declare their occupancy, in order to identify households liable for council tax and/or tax on vacant dwellings.
Content of the reporting obligation for landlords
From January 1, 2023 and up to and including June 30, 2023, the French Finance Act no. 2019-1479 of December 28, 2019, codified in article 1418, I of the General Tax Code, stipulates that all owners, private individuals and companies, of residential property are required to declare information relating to their premises to the tax authorities.
This obligation must be fulfilled only once, and for each premises, unless the situation changes. For owners whose main residence is equipped with Internet access, the declaration must be made electronically via the tax authorities’ website – https://www.impots.gouv.fr/accueil – failing which, the tax authorities must be informed of the absence of such access, in accordance with article 1418, II of the French General Tax Code. Owners must log on to their personal or professional space with their tax number and password, and then complete the procedure via :
– For private individuals, the “Real estate” tab, then “Declare”,
– For professionals, in particular non-trading property companies, the “Procedures” tab, then “Manage my properties”.
Occupancy data known to the tax authorities is pre-displayed, but may be modified, particularly in the event of a change in situation.
All property owners are required to provide the following information:
– How the premises are occupied: personally or by a third party,
– The nature of occupancy: principal residence, secondary residence, rented premises, premises occupied free of charge, or vacant premises.
For rented property, the declaration must specify :
– The type of rental: empty or furnished, seasonal rental, social housing, housing subject to the 1948 Law (housing built before September 1, 1948 in or near certain municipalities with more than 10,000 inhabitants),
– Tenant’s identity: surname, first name, date and place of birth for natural persons; name and SIREN number for legal entities,
– Period of occupancy: beginning and end of the period of occupancy.
For seasonal rentals, the following information must be provided:
– The start of the seasonal rental period,
– How the property is managed (by the owner or by a management company),
– SIREN number of the owner or, if applicable, of the manager.
– Any classification as a furnished tourist accommodation.
Conversely, information on the amount of monthly rent excluding charges remains optional.
This information will be used by the tax authorities to establish the council tax on second homes and rental accommodation, the tax on vacant premises and the council tax on vacant accommodation.
In the case of new owners of a built-up property, it is possible that the said property will not appear in the owner’s personal account. This is because the deed drawn up by the notary must first be published with the land registry so that the owner can be identified. This means that no declaration needs to be made to the Direction générale des finances publiques, as it will automatically be made in the owner’s personal account once the property has been published.
Penalties for failure to declare
Article 1770 terdecies of the French General Tax Code provides for penalties in the event of failure to file a declaration, or in the event of an error, omission or incomplete declaration. Owners are liable to a fixed fine of 150 euros per premises.
Should you have any questions or difficulties, the lawyers at AGN are available to provide you with information and support.
Our lawyers are available to answer all your questions and advise you. Our meetings can be held in person or by videoconference. You can make an appointment directly online at www.agn-avocats.com.
AGN AVOCATS – Tax
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