1. Increase in Property Tax in 2024
2. Impact on Real Estate Investments
3. Payment Deadlines

In France, the population is preparing for the payment of property tax, which is significantly increasing this year. A minimum increase of 3.9% arises from the adjustment of cadastral rental values to account for inflation.

Increase in Property Tax in 2024

In 2024, the property tax has significantly increased. The minimum rise is 3.9%, which is due to the revision of cadastral rental values to account for inflation. This taxable base is used to calculate the amount of the tax and sees its value reevaluated this year. As highlighted by the General Directorate of Public Finances (DGFiP): “Between 2023 and 2024, municipalities largely maintained their local direct tax rates.” For 14.1% of the population, the property tax on built properties (TFPB) has therefore increased. This trend is particularly marked in small municipalities! In localities with less than 10,000 inhabitants, this increase affects 20.5% of the residents. This accentuates the tax pressure on property owners in these areas. Important note: This increase is not homogeneous. Each municipality has voted its own tax rate, explaining the disparities in property tax from one region to another. Local public services, largely financed by this tax, therefore see their budget strengthened, but this translates to an additional cost for taxpayers.

Impact on Real Estate Investments

For real estate investors, the increase in property tax in 2024 poses a real challenge. With a minimum increase of 3.9%, this new burden could indeed reduce the net returns of rental properties. This situation is particularly noticeable against the backdrop of continued tightening of tax policies on real estate.

Payment Deadlines

The deadline for payment for online transactions is set for Sunday, October 20, 2024. For those who prefer to use other payment methods, the deadline is Tuesday, October 15.

The increase in property tax in 2024 reflects a broader reality of tax pressure on real estate. The impact of this rise on homeowners and real estate investors is evident, especially in small municipalities and in light of changes in tax policy.