Cost of ownership in France

cost of ownership Alongside purchase costs, it's important that you understand how much owning a property in France will cost you per year.

Make sure you can afford these costs before you put an offer in on a French property!

Ongoing Taxes

Once you become the owner of a property in France, there are several annual taxes for which you are likely to be liable. You will definitely be required to pay two local taxes. The first is the land tax (taxe fonciere) and the second is taxe d’habitation (habitation tax). These two local taxes equate broadly to Council Tax in the UK.

Land Tax (taxe foncière)

The more land a property has, the more land tax will be payable. Rates for taxe foncière vary depending on region, type of location and how much land the property has. As a guide, for a typical €350,000 four-bedroom house with four hectares of land in the Charente it would be circa €1,600 per year.

A local refuse tax is also often charged together with the taxe fonciere.

Habitation Tax (taxe d'habitation)

Unlike the taxe fonciere calculation of taxe d’habitation is more complex and specific to the occupier, and includes a notional rental value for the property multiplied by the tax rate fixed in the municipality. As a guide, taxe d’habitation is rarely more than taxe foncière.

The taxe d’habitation is payable by whoever owns of or occupies a property on January 1^st each year and so for many buyers this won’t actually become your responsibility until January 1^st of the year following the purchase.

Tax residency status

Owners in France should decide whether they are going to be a tax resident in France or the UK. It is best to seek specialist advice on this.

FAQs: Cost of Ownership in France

Do you pay council tax in France?

France does not have “council tax” as in the UK, but it has two main property taxes. These are taxe foncière (land/property ownership tax, paid by the owner) and taxe d’habitation (residence tax, traditionally paid by the occupier). The taxe d’habitation has been abolished for most primary residences but still applies to second homes.

How much is council tax in France?

The cost varies by location, as rates are set by local councils (communes). On average, taxe foncière can range from a few hundred euros to several thousand per year depending on the property’s size, location, and rental value. Second-home owners should also budget for taxe d’habitation if applicable.

What property taxes do homeowners pay in France?

Homeowners must pay taxe foncière annually. If the property is a second home, they will also pay taxe d’habitation. Additionally, there may be waste collection fees (taxe d’enlèvement des ordures ménagères) included in the bill.

What are the ongoing costs of owning a home in France?

Beyond taxes, owners should budget for utilities (electricity, water, internet), insurance, maintenance, and service charges if buying in an apartment block or managed community. Renovations and repairs can also add to long-term costs, especially for older rural properties.

How much are buying costs when purchasing a property in France?

Buyers usually pay between 7% and 10% of the purchase price in additional costs. This includes notary fees, stamp duty, and registration taxes. Agency fees may or may not be included in the advertised price (FAI – frais d’agence inclus), so always check.

Is property ownership in France more expensive than in the UK?

In many cases, annual property taxes in France are lower than UK council tax. However, buying costs at the point of purchase are generally higher in France, and second-home owners may face extra charges.

Are there regional differences in property tax in France?

Yes. Local councils set their own rates, so taxe foncière and taxe d’habitation vary widely across France. Popular rural areas often have lower taxes, while properties in cities or prime tourist destinations may attract higher bills.

Do second-home owners pay more tax in France?

Yes. Second homes are still subject to taxe d’habitation, and in some areas with high demand, a surcharge is applied. Owners should also consider income tax on rental earnings if they let out their property.