Additional declaration requirement for owners of French property

Update 10/07/2023: The deadline was postponed to 31/07.

Spring is in the country, and so we are looking forward even more than ever to the sunny summer months. But of course, with the Belgian climate, you can never be sure. A second stay abroad is therefore a hot topic for many Belgians looking for some sun. France remains a popular destination, although it does require a lot of administrative formalities. This year, for example, an additional declaration must be made as part of the assessment of the taxe d'habitation.

Who should file the return?

Every owner of a French property intended for residential use must file this declaration. It does not matter if you are a French resident or not, or if the property is held privately or through a (Belgian or French) company. The declaration obligation rests on the full owner(s), the usufructuary(s), the undivided owner(s) and the French SCI. The shareholders of the SCI therefore do not have to file the declaration themselves.

What is the purpose of this declaration?

The new declaration requirement was introduced following the abolition of taxe d'habitation for principal residences beginning in 2023. For second residences and for homes rented to third parties, the taxe d'habitation therefore due. The French Administration thus introduces this declaration requirement in order to determine which properties should be subject to the taxe d'habitation or the vacancy tax (taxe sur les logements vacants).

What information should be included in this return?

The information to be communicated varies from situation to situation:

• How is the property occupied? Do you live there yourself, or have third parties moved in?
• What is the nature of the occupancy? Is it a primary residence, a second residence, a rental property, a property made available for free, a vacant property...
• What is the capacity of the residents? Natural person or a corporation?
• What are the start and end dates of occupancy (or vacancy)?

If there is a seasonal rental, additional information must also be provided on when the rental period will begin, and whether you will take care of the operation yourself or use an external manager.

How and by when to submit?

The declaration must before July 31, 2023 be filed through the personal or professional account on the French tax authorities' website (www.impots.gouv.fr). Those who do not yet have an account can easily create one through the French government's own website. This is only a one-time declaration. Only if the notified situation changes, a new declaration must be submitted.

Sanction?

If no, a late or incorrect declaration is filed, a fine of 150 euros per house may be imposed. And, of course, the declaration must still be filed.

Don't forget the other obligations as well!

So sunny France beckons, but don't forget that holding French real estate thus involves some formalities. In addition to this declaration requirement, the 3% tax should not be overlooked. If you want to know more about this tax, be sure to read our earlier article.