Phasing Out France’s Infamous Residence Tax

    Jul 23, 2021 @ 09:52 AM / by Tobi Howell

    View on Eiffel Tower, Paris, France


    The end is close for France’s highly disfavored taxe d’habitation, or residence tax. The Macron administration announced in June 2021 that, by 2023, no household will pay this tax on its main residence. The gradual phasing out of the outdated 1970s system was announced in 2018. Early tax relief was given to certain households depending on their income and composition. Currently, approximately 20% of households pay this tax; they are predominantly the wealthy and highly paid. Most expatriates who have a housing rental allowance from their employer would still fall in this category.

    Taxe d’habitation is determined by the local commune, or council. The tax is collected by the central government tax authority. The calculation of the appropriate tax is notoriously complex. In simple terms, it is based on the rent that the property might be expected to achieve in the open market, with solid consideration given to the condition, size, and location of the property. AIRINC still accounts for taxe d’habitation in its rental housing data for all French locations. The Housing Team at AIRINC will continue to monitor the latest developments to French housing tax and its implications for rental allowances.

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    Topics: Housing, Expatriate Housing, Tax, France, International Tax Guide, Calculate a housing budget, Housing Assessment Tool, international, global mobility trend

    Tobi Howell

    Written by Tobi Howell

    Tobi is the manager of expatriate housing at AIRINC. As manager of the housing team since 2008, Tobi leads AIRINC’s group of housing analysts in client inquiry response, spearheads proactive global communications to clients, and directs the quarterly release of housing and utility data for hundreds of locations.