Actual buildings

Property tax on built properties (TFPB) is payable for any construction filling the following 2 conditions :

• It is permanently fixed to the ground : the construction shall be connected to the ground in such a way that it is impossible to move it without demolishing it. This is the case if the construction is based on masonry or cement foundations or foundations. Regardless of the nature of the materials used to construct the building itself (e.g. wood, fibercement, steel-framed). On the other hand, this excludes any construction which is not fixed to the ground and which can be easily transported (e.g. cabin, kiosk, booth, fairground).
• It has the character of a real building, by reason of its nature, destination, importance, method of establishment and fixity.

Conversely, a building unfit for use (e.g., dilapidated and ruined building) that is the subject of work affecting its major work is not taxable to tax on built properties. This building will nevertheless be taxable at the real estate tax on unbuilt property (TFPNB).

The building accessories are also subject to property tax on built-up property (e.g. elevators, escalators, glazing, locks, tiles, plumbing, plumbing, sound and thermal insulation, electricity, lighting, telephone installations).

Installations equivalent to buildings

Property tax on built properties (TFPB) is also payable for following properties :

• Facilities for housing persons or property (e.g. hangars, workshops) or to store products (e.g. tanks, tanks, silos, hoppers, gas meters, water towers)
• Masonry structures having the character of genuine constructions (e.g. factory chimneys, atmospheric refrigerants, refit forms, structures supporting material means of operation)
• Soils of buildings and land forming an indispensable and immediate dependency on these buildings, with the exception of land occupied by greenhouses used for agricultural purposes. These are small spaces adjoining or serving as access or clearance to the building, such as courtyards, passages, gardens not exceeding 500 m² or parking spaces in a building complex.
• Land, cultivated or not, used for commercial or industrial advertising (billboards, billboards, etc.) and located more than 100 meters from any built-up area
• Vessels used at a fixed location and fitted out for habitation, trade or industry, even if they are only restrained by moorings (e.g. houseboat, floating lodge built and constructed, not for sailing but for use in meetings of members of a business)
• Works of art and communication channels (e.g. dams, dikes, bridges, quays, overpasses, forced pipes, railways, roads, cemented tracks), with the exception of railway tracks operated by SNCF and RATP which are subject to the real estate tax on unbuilt property (TFPNB)
• Uncultivated land used for industrial or commercial purposes : construction sites, places where goods are deposited and other places of the same nature.

Permanent exemptions

The following properties are exempt from the property tax on built property (TFPB) on a permanent basis and in all cases :

• Buildings assigned to a agricultural use, i.e. barns, stables, granaries, cellars, cellars, presses and other buildings intended either to house livestock and their keepers or to store crops. The exemption remains valid for buildings which are no longer used on a farm, provided that they are not used for any other purpose (e.g. wintering activities for caravans, camper vans or boats).
• Buildings used for the production of biogas, electricity and heat by methanisation. The exemption shall apply on condition that the methanization is carried out by one or more farmers and that it comes from at least 50%, raw materials from agricultural holdings.
• Buildings for photovoltaic electricity production, i.e. technical equipment for the production of electricity but also the buildings which are the necessary support, such as processing and delivery stations and their earthworks.
• Tools and other material means of operating industrial establishments (e.g. distillation towers, ovens, exchangers, specialized refinery steam cracking units), excluding those intended to house persons or to store products.
• Hangars belonging to rescue associations recognized as being in the public interest and used to shelter their lifeboats.

Other properties also benefit from a permanent exemption from tax, provided that the exemption is granted on the deliberation of the municipality :

• Hotels, classified premises and bed and breakfast located in Rural Revitalization Area (RRZ). The company must submit an exemption request to the Property Tax Office via the form n°6671-D-SD.
• Buildings used for the dehydration of fodder (e.g. alfalfa, beet and maize fodder), excluding those containing presses and dryers
• Accommodation less than 3 km from an establishment with an installation classified as ‘ SEVESO 3-SH’. The exemption shall be granted up to 25% or 50% of the tax.
• Dwellings located in an area of exposure to mining risks. The exemption shall be granted up to 25% or 50% of the tax.
• Dwellings within the perimeter of a technological risk prevention plan. The exemption shall be granted up to 15% or 30% of the tax.

Temporary exemptions

Exemptions temporary property tax on built property (TFPB) are numerous.

Exemption for new and similar constructions

One 2-year exemption shall apply in the following cases:

• New constructions, reconstruction or construction additions for residential use
• New constructions, reconstructions or additions of constructions other than those for residential use. In this case, the exemption shall be 40% of the tax.
• In the case of conversion of a building for agricultural use into a house or factory
• Where land is used for commercial or industrial purposes, such as construction sites, places where goods are stored and other similar sites.

To benefit from this exemption, the owner must make a declaration, informing the property tax center of the location of the property, the construction or the change in the 90 days of its realization. Where the declaration is made out of time, the exemption shall apply for the period remaining after 31 December of the following year.

Exemption for new companies

A new company that creates or buys a local for business purposes may benefit from exemption from 2 to 5 years, on the basis of the deliberation of the communities.

The conditions to be met vary depending on location of the company to be created:

• Either in a Rural Revitalization Area (RRZ)
• Either in a regional aid area (RBAZ).

The company must declare the acquisition of the premises, at the property tax center of the location of the property, in the 15 days of signature of the act. The declaration must specify the nature of the goods, their location (address and, if possible, cadastral references) and the references of the document (date, registration number, etc.). Failure to report on time shall result in the loss of the exemption for the year following the year in which it should have been entered into.

Exemption for young innovative companies (JEI)

One 7-year exemption shall apply, on the decision of the local authorities, to premises owned by young innovative companies (JEI) created until 31 December 2025. It shall cease to apply from the year following 7^e the anniversary of the creation of the company or early if the company no longer meets the conditions of the specific status.

In order to benefit from the exemption, the company must indicate this on unbound paper before 1^er January of the first year in respect of which the exemption is sought from the property tax center of the location of the premises.

Exemptions in priority areas

Companies benefit from a property tax exemption where their establishment is located in a priority area :

• 5-year exemption in the following areas:
  
  • Priority areas of city politics (QPV)
  • Employment pools to be revitalized (BER)
  • Defense Restructuring Zones (DRZs)
• 7-year exemption in the following areas:
  
  • Urban basins to be dynamized (BUD)
  • Priority Development Areas (PDZs)
• Exemption of 5 years, then 3 years degressively (75%, 50%, 25%), in the areas France ruralités revitalization (FRR), from 1^er July 2024.

In order to benefit from the exemption, the company declares the property tax office of the location of the property before 1 January of the year in respect of which the exemption takes effect. Failure to report on time shall result in the loss of the exemption for the year concerned.

Reporting obligation

Owner must report new constructions and the changes in consistency or use of the built property.

The declaration must be made within 90 days of completion, i.e. as soon as the state of progress of the works allows the property to be used effectively, even if there is still some interior work to be done (e.g. paints, wallpaper, flooring).

In the case of a paper declaration, it must be lodged, at the option, at the personal income tax department (SIP) or at property tax centre (CIF) the location of the built property.

Penalties for non-declaration

The owner or usufructuary who makes an incorrect or out-of-time declaration shall be liable to 2 types of sanctions cumulable:

• Tax fines : failure to produce a document within the prescribed time limit which must be submitted to the tax authorities shall result in the application of a fine of €150. In addition, each inaccuracy or omission in the same statement is also punishable by a fine of €15, without the total fines applicable per declaration being less than €60 not greater than €150.
• Loss of entitlement to temporary exemptions : in the case of late reporting (beyond 90 days after completion of the works), the temporary exemption of property tax applies only for the period remaining after 31 December of the following year.

Calculation of the taxable amount

Property tax on built property (TFPB) is based on the cadastral rental value of these properties. This rental value is the annual rent that the property could generate if leased.

This rental value shall be reduced by one abatement of 50% to compensate for the owner's management, insurance, depreciation, maintenance and repair costs. In other words, the property tax base is equal to 50% of the cadastral rental value taxable property.

Next, the property tax is calculated by applying to cadastral income (i.e. to the tax base) a tax rate voted by local and regional authorities.

Relief in the event of non-exploitation

The owner can benefit from a relief of tax where a building (e.g. building, site, place of deposit) for commercial or industrial use, which it operates itself, is subject to a interruption of operation.

The rebate is applicable when the non-operation fulfills the 3 following conditions :

• It is independent of the owner's control. The owner must establish precisely that a circumstance beyond his control has inevitably hindered the continuation of the exploitation (economic crisis, lack of raw materials, health, etc.).
• It has lasted for at least 3 continuous months. There would be no rebate for, for example, a building used by an industrial or commercial establishment that is unused on a regular basis every other week.
• It affects the whole of the building or a part capable of separate use.

In order to obtain the rebate, the owner must apply to the property tax center on which the building depends no later than December 31 of the year following the year in which the inexploitation has reached the minimum period required.

The relief shall be calculated from the first day of the month following the month in which the non-operation started to the last day of the month in which it ended.