France has rolled out one of its most significant property tax reforms in decades, and with it comes a brand new reporting obligation that affects millions of property owners both inside and outside the country. As reported by STEP, the Society of Trust and Estate Practitioners, the French government has abolished the taxe d’habitation on primary residences while keeping it firmly in place for second homes and vacant properties. To make this two-tier system work, the tax authorities now need to know exactly how every property in France is being used.
That is where the new mandatory occupancy declaration comes in. Every owner of residential property in France, whether an individual, a company, or a non-resident investor, must now tell the French tax administration who occupies their property and on what basis. With roughly 34 million owners and around 73 million properties affected, this is a reporting exercise on a massive scale. This article breaks down what the reform means, who has to file, the deadlines involved, and the practical steps you should take to stay compliant.
What France’s New Property Tax Means for Owners
The centrepiece of the reform is the abolition of the taxe d’habitation, France’s long-standing residence tax, for main homes. From 2023 onwards, households no longer pay this charge on their primary residence, delivering a meaningful saving for millions of French taxpayers. However, the tax has not disappeared entirely. It continues to apply to second homes, holiday properties, and furnished dwellings that are not the owner’s principal residence. In addition, the taxe sur les logements vacants, a separate levy on vacant properties, remains in force in areas with housing shortages.
For property owners, the practical consequence is that the French tax administration must now distinguish between primary residences, secondary residences, rented properties, and empty homes. Previously, this distinction mattered far less because nearly everyone paid the residence tax in some form. Now, the classification of your property directly determines whether you owe tax at all. This is precisely why the government, through the Direction Générale des Finances Publiques, has introduced a compulsory declaration of occupancy that all owners must complete, regardless of whether they ultimately owe any tax.
Who Must File Under the Mandatory Reporting Rules
The scope of the new reporting requirement is deliberately broad. Every owner of residential real estate located in France is caught, and that includes several categories of owner who might assume they are exempt:
- French resident individuals who own their main home, a second home, or rental property
- Non-resident individuals, including expatriates and foreign investors with holiday homes in France
- Companies and legal entities, such as the popular SCI (société civile immobilière) structures frequently used to hold French property
- Usufruct holders and bare owners under split-ownership arrangements common in French estate planning
The declaration, known as the déclaration d’occupation, must confirm the capacity in which the property is occupied. Owners need to state whether they occupy the property themselves as a main or secondary residence, whether it is rented out (and if so, the identity of the tenants), or whether it stands vacant. According to French government figures, this obligation touches approximately 34 million property owners covering around 73 million individual premises, making it one of the largest data collection exercises the tax authority has undertaken. Guidance on the process is available through the official Service-Public.fr portal.
How the Declaration Works in Practice
Filing is done online through the “Gérer mes biens immobiliers” (Manage my real estate) service within each owner’s personal or professional account on the impots.gouv.fr website. The system pre-populates the properties registered against your name, and you simply confirm or update the occupancy details for each one. Owners who have not previously created an online tax account in France, which is often the case for non-residents, need to register first, and this can take some time to set up.
Importantly, this is not necessarily a one-off exercise. Once the initial declaration has been made, owners only need to file again when the occupancy situation changes, for example when a tenant moves out, a property is sold, or a second home becomes a main residence. That said, keeping the information accurate over time is the owner’s ongoing responsibility, and the tax authority will use the data to issue or withhold residence tax assessments each year.
Key Deadlines and Penalties for Non-Compliance
The original deadline for the first declaration was set at 30 June 2023, meaning all owners had to complete their filing before 1 July 2023. Given the sheer volume of filings and the number of owners unfamiliar with the online system, particularly non-residents, professional bodies and advisers urged clients to act early rather than risk last-minute technical bottlenecks on the government platform. Reports in outlets such as The Connexion highlighted widespread confusion among overseas owners in the run-up to the deadline.
The consequences of getting it wrong are financial. Failure to file, filing late, or submitting incomplete or inaccurate information exposes the owner to a fine of EUR 150 per property. For owners of multiple properties, or corporate structures holding entire portfolios, those penalties can multiply quickly. Beyond the fine itself, an incorrect declaration could result in the wrong tax treatment, such as a residence tax bill being issued on a property that should have been exempt, or an exemption being wrongly applied and later clawed back with interest.
| Aspect | Detail |
|---|---|
| Who must file | All owners of French residential property (individuals and entities) |
| What to declare | Occupancy status: main home, second home, rented, or vacant |
| Where to file | “Gérer mes biens immobiliers” on impots.gouv.fr |
| Initial deadline | 30 June 2023 |
| Penalty | EUR 150 per property for non-filing or inaccuracies |
| Frequency | Initial filing, then updates whenever occupancy changes |
Practical Steps to Meet Your French Tax Obligations
If you own property in France and have not yet dealt with this obligation, or if your circumstances have changed since your last filing, a structured approach will keep you on the right side of the rules. Here is a straightforward action plan:
- Create or access your online tax account at impots.gouv.fr. Non-residents without a French tax number should request one well in advance, as issuance can take several weeks.
- Review the properties listed under the “Gérer mes biens immobiliers” service and check that the details match reality, including surface area and property type.
- Confirm the occupancy status of each property: owner-occupied main residence, secondary residence, rented (with tenant details), or vacant.
- Keep supporting records, such as tenancy agreements and utility bills, in case the tax authority queries your declaration.
- Update the declaration promptly whenever tenants change, a property is sold, or the way you use the property shifts.
For owners with complex situations, professional advice is strongly worth considering. Properties held through an SCI, dismembered ownership between usufructuary and bare owner, or portfolios spanning multiple communes all raise questions about who exactly bears the filing duty. Cross-border owners also need to think about how the French rules interact with their home-country tax position. Trust and estate practitioners affiliated with STEP, along with French notaires and tax advisers, routinely assist non-residents with these filings and can handle the declaration on an owner’s behalf, which is often the safest route for anyone uncomfortable navigating a French-language government portal.
In Short
France’s abolition of the taxe d’habitation on main homes is good news for resident households, but it has come bundled with a compliance obligation that no property owner can afford to ignore. The mandatory occupancy declaration applies to every owner of French residential real estate, from local families to overseas investors and corporate structures, and covers tens of millions of properties nationwide.
With a EUR 150 fine per property for non-compliance and the risk of incorrect tax assessments, the message is clear: check your online tax account, declare the occupancy status of every property you own, and keep that information current. A small administrative effort now avoids penalties and disputes later, and ensures you only pay the French property taxes you genuinely owe.
FAQ
Do non-residents have to file the French occupancy declaration?
Yes. The obligation applies to all owners of residential property in France regardless of where they live. Non-residents must register for an online account at impots.gouv.fr if they do not already have one.
Is the taxe d’habitation completely abolished?
No. It has been abolished only for primary residences. Second homes and furnished properties that are not the owner’s main residence remain taxable, and vacant properties may attract the vacant homes tax.
What happens if I miss the deadline?
Late, missing, or inaccurate declarations can trigger a fine of EUR 150 per property, and your property may be taxed incorrectly until the situation is regularised.
Do I need to file every year?
No. After the initial declaration, you only need to file again when the occupancy situation changes, such as a new tenant, a sale, or a change in how you use the property.
Can a property held through an SCI be declared by the company?
Yes. Companies and other legal entities holding French residential property must file through their professional online tax account, and the declaration covers all properties the entity owns.
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