Everything you need to know about the 2020 housing tax

The deadline for paying your 2020 housing tax is approaching. It is set for November 16 if you are not using a digital payment method. For those using a digital payment method, you have until November 21. With the latest 2018 reforms, many questions may arise. This week, your Welkeys concierge service provides an update on this tax.

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What is the housing tax?

The housing tax is a local tax. It applies to furnished premises used as a primary residence. Its amount varies depending on the size of the occupied property, its location, and its amenities. The personal situation of the owner or tenant as of January 1 is also taken into account.

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There is no declaration to file for the housing tax. You will receive your tax notice during the last quarter of the year. It can be viewed in your personal account on the tax website.

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If you own a television, you must also pay the audiovisual license fee. The amount will be notified to you on the same document.

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You have three options for paying your housing tax:

• pay online on the tax website or via the app, opt for payment at the due date, or choose monthly direct debit.

What are the reforms for the housing tax in 2020?

The 2018 Finance Act brought about many changes in the application of this tax. In 2020, it is estimated that 80% of French households are exempt from the housing tax. To benefit from this exemption, you must not be living in a common-law partnership or a shared apartment. In addition, there is a maximum income threshold.

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For other households, the tax relief will be gradual. The amount will decrease year after year. You can estimate your situation using a simulator provided by the government.

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By 2023, no French household should have to pay housing tax on their primary residence. For more information on the 2018 Finance Act, you can visit the website of the Ministry of the Economy, Finance and Recovery.

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If you own and/or rent out a secondary residence, the gradual abolition of the housing tax does not apply to this property. If you pay the tax for your primary residence, it may be subject to a surcharge.

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Who will pay the housing tax in November 2020?

The person liable for the housing tax can be the owner, the tenant, or a free occupant.

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If the owner rents out their primary residence seasonally, they are liable for the housing tax. If you rent out a secondary residence as a seasonal rental, you are also liable for the housing tax. In both cases, it is considered that the owner can enjoy their property during the year.

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If you rent out a property that you never occupy for several months of the year, you may be exempt from the housing tax. You must have taken the necessary steps to put it back on the rental market by January 1.‍

In the case of a medium-term annual rental, the tenant is liable for the housing tax. They must meet two conditions: be a tenant on January 1 and still be subject to the housing tax in 2020. Indeed, the owner will not be able to enjoy their property. The latter may, however, be liable for the CFE (territorial economic contribution).

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Welkeys, an all-inclusive service

Short on time to manage a property you want to offer as a seasonal rental? Your Welkeys concierge service is here to help. From creating the listing to cleaning, we manage your property from A to Z. Furthermore, we stay informed about legislation to provide you with the best possible support. Visit our website to get started.