New Obligation for Property Owners in France: Declaration of Occupancy

A recent development in French property regulations requires all owners of residential properties to declare the occupancy of their homes. Effective from 2023, this new obligation aims to enhance transparency in the housing market. In this article, we will delve into the details of this requirement, including its scope, consequences of non-compliance, and how Eurex can help you fulfill the declaration efficiently.

The Finance Law for 2020 brought about significant changes in France, including the elimination of the residence tax on primary residences. Simultaneously, it introduced a new declarative obligation for all owners of residential properties. Commencing from 2023, property owners must declare the occupancy of their dwellings with the deadline set as June 30th, 2023. Additionally, this declaration should be updated annually if there are any changes to the property's status.

Which Properties are Affected?

This declaration requirement encompasses all residential properties, regardless of the nature of ownership or purpose. Whether it is a primary or secondary residence, a rental property, or even a vacant unit, owners must indicate the purpose of occupancy accurately.

Consequences of Non-Compliance

Failure to fulfill the declaration or providing inaccurate information may result in a tax penalty of €150 per property, as outlined in the General Tax Code. However, this penalty is not applicable if a higher penalty or surcharge is imposed for the same offense.

To streamline the declaration process, property owners are encouraged to utilize the online platform provided on impots.gouv.fr. The "Manage My Real Estate" section allows for convenient submission of the declaration, ensuring compliance with the new regulation. It is important to note that known occupancy data is pre-displayed by the tax administration, which can be updated using the secure messaging system on the taxpayer's personal space.

The introduction of the declaration of occupancy requirement in France signifies a significant step towards a more transparent housing market. As responsible property owners, it is crucial to comply with this new regulation to avoid penalties and contribute to accurate data on property occupancy.