We have already mentioned that the prospect of dealing with unfamiliar systems in an unfamiliar language can be extremely daunting to some people. Tax systems are notoriously difficult to fathom in your own country so below we’ve highlighted the main taxes you will encounter if you own a property in France along with a brief explanation of how they apply.

Taxe fonciere
This is a tax on the property itself – the equivalent to rates. It is paid by the owner of the property and applies even if they don’t live there. The taxe fonciere is split between the building itself and the land and the amount paid varies greatly depending on the location and size of the property. And the final point to note is that any new property is exempt from this tax for the first two years. 

Taxe d'habitation
Or literally a residential tax. Similar to the Council Tax in the UK and paid by the person living in a property at the start of each year irrespective of whether they own or rent the dwelling. or tenant. Owner occupiers therefore pay taxe d'habitation and taxe fonciere.

Taxe professionelle
As the name suggests this translates as professional tax and is payable only if you want to to work from your French home.

Impot sur la fortune
This is a wealth tax which rarely affects first time buyers in France as the couple's annual income has to exceed €720,000.

Impot sur les plus-values
The French version of Capital Gains Tax is payable on the profit you make when you sell your property and is paid at the rate of 16.5%. However, after five years of owning the property, the rate falls by 10% in each subsequent year. So, after 10 years you pay this tax at 8.75% - 50% of the original - and after 15 years you become exempt.

If the annual amount of rent you receive is less than €76,300 then you qualify for a 72% tax deduction and the balance is taxed at the standard rate of 25%.

There may be a small bill or refund depending on the difference between what you paid in France and what you would have paid in the UK.

General tax
TVA ( VAT) is payable on most things in France and the current rate is 19.6%.