Scope of the 3% annual tax on buildings

The annual tax of 3% concerns legal entities (legal persons, bodies, trusts or comparable institutions) that hold in France on 1^er January 2023, directly or indirectly:

• one or more buildings;
• rights in rem in immovable property (usufruct, right of use, etc.).

Businesses or other legal entities in which the State is involved and groupings (economic interest groups, trade unions, etc.) fall within the scope of this levy.

Exempted entities

The tax at 3 % of the market value of immovable property or immovable property rights held by legal entities shall not apply to:

• international organizations and sovereign states (as well as their political and territorial subdivisions, and comparable legal persons, bodies, trusts or institutions that they control predominantly);
• legal entities whose real estate assets represent less than 50% of the assets held in France directly or through legal entities;
• legal entities whose shares and other rights are the subject of significant and regular negotiations on a regulated market, and to legal persons whose share capital is wholly or indirectly held by such entities.

Legal entities which have their registered office in France, in a Member State of the European Union or in a Member State of the European Union or in a Member State of the country or territory which has concluded an administrative assistance agreement with France to combat tax fraud and tax evasion or in a State which has concluded a treaty with France enabling them to benefit from the same treatment as entities having their registered office in France :

• of which the share real property or immovable property held in France is less than € 100 000 or less than 5 % of the market value of such real property or immovable property;
• established for the purpose of administering pension schemes, their groupings, and legal entities recognized as being in the public interest or whose management is not self-interested and whose activity or financing justifies the ownership of immovable property or immovable property rights;
• which take the form of a Predominantly Real Estate Investment business with Variable Capital (SPPICAV) or Real Estate Investment Funds, and legal entities subject to equivalent regulation in the State in which they are established;
• notifying each year or undertaking to communicate, within 2 months of the date of acquisition of the immovable, right or interest, to the tax authorities the situation and value of the immovable property held on 1^er january 2023 or the identity and address of all shareholders, partners or other members who hold more than 1 % of the shares, shares or other rights (and the number of shares, shares or other rights held by each of them).

Finally, a partial exemption is granted to legal entities reporting annually by 15 May the situation and value of the buildings held on 1^er january 2023 or the identity and address of all shareholders, partners or other members who hold more than 1 % of the shares, shares or other rights (and the number of shares, shares or other rights held by each of them). This shall be proportionate to the number of shares or other rights held on 1^er January 2023 by shareholders, partners or other members whose identity and address have been declared to the tax authorities.

How do I declare and pay this tax?

The declaration and payment of this tax are made online. The deadline for making the remote declaration and payment is set at May 15, 2023 inclusive.

The declaration shall include the place of location, the consistency and market value of the immovable property and immovable property rights held at 1^er January 2023. It is performed on the form n°2746-SD. The print must be remotely declared on impots.gouv.fr.

As for the telepayment, it is also made on impots.gouv.fr from your professional space. If you do not have one, it is necessary to have a SIREN number and to subscribe to the teleprocedure services.