Property tax and development tax for businesses in France
As owner of premises or developer of works in France, an EU company may owe property tax and development tax. Here is how they work and what to declare.
Two taxes linked to real estate
The property tax on built properties (taxe foncière) is an annual tax owed by the owner of a building. The development tax (taxe d’aménagement) is a one-off tax linked to a construction, reconstruction, extension or change of use that requires planning permission.
They are separate from CFE, which hits the operator, but often rely on the same premises and land-registry data.
Property tax: who pays and how it is calculated
It is due on 1 January by the owner (or holder of an equivalent right such as usufruct) of constructions fixed to the ground that are genuine buildings: commercial, industrial or professional premises, warehouses, industrial installations, car parks, commercial or industrial land.
The base is the cadastral rental value reduced by a flat 50% allowance for costs. It is multiplied by the rates voted by the municipality and other local authorities. A household-waste collection tax may be added.
Exemptions
- temporary two-year exemption for new constructions, reconstructions and additions, in principle from 1 January following completion;
- specific exemptions (young innovative companies, rescued businesses in difficulty, certain agricultural buildings) under conditions.
A tenant is not legally liable, but the property tax is often re-invoiced by the landlord: check your lease.
Development tax: taxable event and calculation
The person liable is the beneficiary of the building permit. The amount results from the formula taxable surface × flat value per sq m × rate. The flat value is set each year (€892 per sq m in 2026 outside Île-de-France, €1,011 in Île-de-France). The municipal rate is in principle between 1% and 5%, or higher in certain areas; the département applies a rate capped at 2.5%; Île-de-France adds a regional share.
Exemptions exist (very small constructions, reconstruction after a disaster, certain agricultural buildings, public services, etc.).
Returns and deadlines
Sources: property tax on economie.gouv.fr and development tax on Service-Public Entreprendre (in French).
Common mistakes
- Not declaring completion or an extension, which forfeits the exemption or triggers a catch-up.
- Paying property tax on an inaccurate surface area or category.
- Ignoring the re-invoicing clause in the lease.
- Confusing development tax with other planning contributions.
- Missing the claim deadline: see penalties and interest and claims.
How Hanoutax helps
Hanoutax, a tax mandatary acting under a written mandate, can prepare and file on your behalf the returns linked to your premises and constructions, check bases and notices, monitor deadlines and prepare correction or relief requests. The scope is set by the power of attorney with the tax authorities.
FAQ
Does a tenant pay property tax?
The legal taxpayer is the owner, but the lease may provide for re-invoicing to the tenant.
When must I declare a new construction?
Within 90 days of completion of the works.
Is a new building exempt from property tax?
In principle for two years from 1 January following completion, under conditions; the declaration is needed to benefit.
How is development tax calculated?
Taxable surface × flat value per sq m × municipal and département rate (and regional rate in Île-de-France).
Can development tax be paid in instalments?
Yes, above €1,500 it is generally split into two payments.
Does Hanoutax also handle building permits?
No. We deal with tax filing aspects, not planning permissions.
Informational content, which does not constitute legal advice. The rules that apply depend on your situation.
Premises or works in France to declare?
See also