Property tax on buildings: operation and possible reductions

Property tax on buildings: operation and possible reductions

This tax can be exempted or reduced for the owner of a property and his usufructuary.

the Property tax on developed land (TFPB) is a local tax aimed at property owners and beneficiaries.

What is he aiming for? Living quarters, floors, parking lots and plots of land that represent a significant and immediate dependency on buildings. Caravans and mobile huts, on the other hand, are exempt from property tax unless they are fixed with masonry fasteners.

The method for calculating the TFPB

Its basis is established for the whole year in the commune where the property is located and according to the circumstances on January 1st of the tax year. The tax is calculated from the cadastral value and the rates that the respective municipality has agreed.

The cadastral income is the tax base of the property tax, it corresponds to the cadastral rental value from which a 50% reduction is deducted.

TFPB: what exemptions and reductions?

Total Liberation

Total exemption from this tax can be obtained under one of the following criteria:

  • the person occupying the home receives the Solidarity Allowance for the Elderly (Aspa) or the Disability Allowance (Asi) or the Disabled Adult Allowance (AAH);
  • She is 75 years old on January 1 of the tax year.

In terms of income, the reference tax income of the tax assessment is below the limits set by Article 1417-I of the General Tax Code in order to be eligible for exemption.

Two-year exemption

New buildings, conversions or extensions are not subject to any property tax liability two years after their completion.

  • full exemption if the property is assigned to housing, primary or secondary residence;
  • partly if the building is used for another purpose (industry, trade, etc.)

Three-year exemption

Local authorities can grant a full or partial property tax exemption for a period of three years when energy works are carried out.

Accommodation must have been completed before January 1, 1989 to benefit. And the amount of costs must be above:

  • EUR 10,000 per dwelling in the year before the first year of application of the exemption;
  • 15,000 euros per accommodation if the expenses were incurred in the three years preceding the year in which the exemption applies.

Automatic relief

If the person concerned is over 65 and under 75 on January 1st of the tax year and the reference tax income (RFR) does not exceed the income limits established in Article 1417-I of the Tax Code, a reduction of 100 euros on the TFPB of the main residence is automatically applied .

Upper limit based on income

In order to benefit from a tax reduction of more than 50% of their income, they must not exceed the income limits set by Article 1417-II of the General Tax Code.

The case of the vacant apartments

If there are vacancies, two types of premises are affected:

  • vacant dwellings normally intended for rent;
  • unused industrial and commercial premises previously occupied by the property taxpayer.

It must have been uninhabited for at least three months and the application must be submitted to the tax office.