Does a micro-entrepreneur have to pay the company Land Assessment (CFE)?
Verified 17 September 2024 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Finance
Which micro-entrepreneur should pay the CFE?
A micro-entrepreneur (or self-employed person ") must pay the company property tax (CFE) under the same conditions as any individual contractor or business.
However, the micro-entrepreneur is exempt from CFE whether it carries out certain activities, in particular:
- Artisan
- Artist-author (except software authors)
- Independent Home Seller (VDI)
- Owner who rents a furnished part of his home
- Athlete
- Farmer
- Fisherman.
Moreover, the micro-entrepreneur who has of no premises and whose annual turnover does not exceed €5,000 is exempt from CFE.
Please note
The full list of CFE exemptions is available on the dedicated card.
How do I apply for an exemption from CFE for the first year of operation?
The micro-entrepreneur is exempt from payment of the EWC in the first year of operation, regardless of the date on which the creation exercise is opened. He has nothing to pay.
In order to benefit from it, he must file a 1447-C-SD return (the so-called initial return) with the companies' tax department before 31 December of the year in which the activity began.
Initial Declaration 1447-C-SD (CFE)
Who shall I contact
Please note
The year following the year of creation (1era tax year), the micro-entrepreneur receives a reduction of 50% from its tax base to the CFE.
How is the CFE calculated?
The CFE is calculated differently depending on whether the micro-entrepreneur whether or not it has a room (or land) for the exercise of its activity.
It has a premises or land
The CFE is calculated against the rental value of immovable property subject to the property tax which he used to carry on his professional activity in the penultimate year (year N-2).
A variable rate depending on the municipality (where the micro-contractor has its principal place of business) is applied to the rental value to determine the amount of the LFC.
The amount of the tax must be paid by December 15 every year.
Example :
In calculating the 2024 EFC, the trader must take into account the commercial premises used in 2022 for the purposes of his business.
On the other hand, if the rental value of the premises is too low, the micro-entrepreneur must pay a minimum contribution. In this case, the amount of the CFE shall be determined based on turnover carried out over a period of 12 months (in year N-2).
In each tranche, the minimum CFE base and the applicable rate vary according to the municipality in which the micro-entrepreneur is domiciled. In other words, for the same turnover, 2 companies located in 2 different municipalities will not pay the same amount of CFE.
Turnover made of N-2 | Minimum CFE base due in 2024 (according to municipality) | Minimum CFE base due in 2025 (depending on the municipality) |
|---|---|---|
Enter €5,001 and €10,000 | Enter €237 and €565 | Enter €243 and €579 |
Enter €10,001 and €32,600 | Enter €237 and €1,130 | Enter €243 and €1,158 |
Enter €32,601 and €100,000 | Enter €237 and €2,374 | Enter €243 and €2,433 |
Enter €100,001 and €250,000 | Enter €237 and €3,957 | Enter €243 and €4,056 |
Enter €250,001 and €500,000 | Enter €237 and €5,652 | Enter €243 and €5,793 |
From €500,001 | Enter €237 and €7,349 | Enter €243 and €7,533 |
He practices from home or at his clients' home
If it has no premises and carry on business at home (or at the premises of its clients), the micro-entrepreneur is still liable to the CFE. In this case, the amount of the CFE shall be determined based on turnover carried out over a period of 12 months (in year N-2).
In each tranche, the minimum CFE base and the applicable rate vary according to the municipality in which the micro-entrepreneur is domiciled. In other words, for the same turnover, 2 companies located in 2 different municipalities will not pay the same amount of CFE.
Please note
The place of domicile may correspond to its dwelling place or at another place under a contract of commercial domiciliation.
Turnover made of N-2 | Minimum CFE base due in 2024 (according to municipality) | Minimum CFE base due in 2025 (depending on the municipality) |
|---|---|---|
Enter €5,001 and €10,000 | Enter €237 and €565 | Enter €243 and €579 |
Enter €10,001 and €32,600 | Enter €237 and €1,130 | Enter €243 and €1,158 |
Enter €32,601 and €100,000 | Enter €237 and €2,374 | Enter €243 and €2,433 |
Enter €100,001 and €250,000 | Enter €237 and €3,957 | Enter €243 and €4,056 |
Enter €250,001 and €500,000 | Enter €237 and €5,652 | Enter €243 and €5,793 |
From €500,001 | Enter €237 and €7,349 | Enter €243 and €7,533 |
FYI
The micro-entrepreneur shall be exempt from the minimum contribution if his annual turnover does not exceed €5,000. If the amount of its turnover has been calculated over a period of less than 12 months, this amount will be recalculated over 12 months.
FAQ
General Directorate of Public Finance