Created and implemented in 1974 by the reform of local direct taxation, the housing tax replaces the old contribution on movable property resulting from revolutionary legislation. The residence tax is therefore a local tax which concerns both the owners and the tenants of a dwelling. Considered as a direct tax, the housing tax is feared by all real estate investors. Preparing to pay this local tax avoids any unpleasant surprises. A better control of your expenses allows a better profitability. This is why your Bordeaux concierge is there to guide you through the various subtleties of the housing tax.
What is council tax
The housing tax is a local tax levied by local authorities, such as municipalities, intermunicipalities and departments. It is historically based on dwellings occupied as a main residence, as a secondary residence or as a rental. This fee is part of the local taxes in the same way as the property tax on built and unbuilt properties.
Used to finance local public services, the housing tax is often misunderstood by owners who are reluctant to pay it. Only, it is a sum donated to public services to invest in infrastructure that directly benefits the inhabitants. This includes services such as public lighting, roads, waste collection, maintenance of green spaces, cultural, sports and leisure facilities, as well as other infrastructure and services offered by local authorities.
This tax varies depending on your area of residence. Indeed, each municipality has the power to set the rate of housing tax according to its projects. This means that the amount of the tax may be subject to very large variations from one city to another, depending on the needs and choices of each local authority. It is therefore essential for owners and real estate investors to pay attention to the housing tax of the city envisaged before making the decision to buy.
How is council tax calculated?
In general, the housing tax is calculated using the cadastral rental value of the accommodation and by applying a tax rate set by the municipality. Your Cannes concierge will explain what you need to know depending on your situation.
For a main residence
The housing tax for a main residence is calculated using the cadastral rental value of the accommodation, which represents an estimate of the theoretical annual rental value of the accommodation. This rental value is determined by the tax services according to various criteria such as the living area, the characteristics of the accommodation, its location, etc.
This rental value is then multiplied by the tax rate set by the municipality in which the accommodation is located. Attention, this rate varies from one municipality to another, but it is also possible to find different rates according to the sections of the municipality.
Allowances may be applied to the rental value to take into account the situation of taxpayers. These allowances are determined according to criteria such as the composition of the tax household, income, family situation, etc. They make it possible to reduce the tax base and therefore the amount of housing tax to be paid.
Good news in 2023: the housing tax is abolished for all main residences!
For a secondary residence
The calculation of the residence tax for a secondary residence is similar to that of a principal residence. The cadastral rental value is also used, but the tax rate may be different. In general, the tax rate for secondary residences is often higher than that applied to principal residences. This is because secondary properties are considered a luxury and do not benefit from the same allowances as primary residences.
The residence tax is therefore more expensive for a second home than for a main accommodation.
Good to know: Exemption from housing tax is possible if you leave your main residence for a specialized establishment (such as a long-term medical care center or a retirement home). This exemption concerns your main residence, but also your second homes!
For a rental
When a dwelling is rented, the housing tax is normally payable by the tenant, unless the rental contract provides that the owner assumes responsibility for it. In the latter case, the calculation of the housing tax is similar to that of a principal residence. The landlord then has the option of passing on this tax to the amount of the rent.
It is important to note that each municipality can set its own rules concerning the distribution of the housing tax between the owner and the tenant. It is therefore essential to refer to the rental agreement and the laws in force in the specific municipality to know the tax responsibilities of each party.
Your concierge service in Bordeaux helps you make your accommodation profitable
The strength of our YourHostHelper franchise is to offer our rental management services throughout France thanks to an extensive concierge network. Each of our concierge services has unparalleled expertise coupled with highly developed knowledge of the field. This is why we are able to faithfully support our owners according to their preferred sector.
Your Bordeaux Concierge accompanies you for your short-term rental investments. Come and talk with us about your investment project to obtain precise and reliable information concerning the housing tax in force in the district of your choice. We offer premium rental management services for all of our landlords to increase their rental income while allowing them to delegate the time-consuming tasks of a rental. Generate interesting income thanks to Airbnb rental and your concierge service in Bordeaux.
The housing tax is a tax obligation to which all owners and tenants of accommodation are subject. Understanding how it is calculated for a main residence, a secondary residence or a rental is essential to avoid unpleasant surprises. Your Bordeaux concierge is at your disposal to assist you in these procedures and help you make your accommodation profitable by setting up effective rental management.
