MBA France

Taxes in France


 

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In France, taxes are the funding that sustains a modern democratic society, where education is free and health care is accessible to all. Taxes are seen as a way to give everyone the same chances by supplying the same tools necessary to improve themselves. French people see paying taxes as paying for beneficial services. All French families, no matter their income level, receive some type of government allowance.

The below list is not exhaustive, you might run into other local taxes, but this should give you an idea of the different taxes that a French resident must pay:
Sales Tax: French sales tax or the TVA (taxe sur la valeur ajoutée) is 19.6%. Sales tax in France is figured the price of a product. If you see something marked at 10 Euros, that is what you will pay, not 10 euros plus 19.6%.

Television Tax: Every owner of a television in France must pay a yearly tax (redevance audio-visuelle), this last year it was around 115 euros. The money this tax raises is used in part to fund the four public television channels, France2, France3, France5 and Arté.

Habitation Tax: Each housing unit in France must pay a habitation tax (taxe d'habitation). It dose not matter if you own the property or not, if you live in it you pay the tax. This tax is calculated locally by a land registrar and commission, it does not have much relation to rent cost but to size, location and family situation.

Rental Income Tax: Whether you reside in France or not, you will be liable for tax on any rental income earned from your French property. This is levied at regular income tax rates.

Property Tax: All property owners in France must pay a yearly property tax (taxe foncière). This is much like property taxes in the States as the tax amount is calculated as a percentage of the value of the property.

Transfer Tax: A transfer tax of 7.5% is levied on the sale of real estate. For new properties, this can be less than 1%.

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Money & Finance in France
MBA France