English
FrançaisI have a leaseback studio in Paris. When I bought it I was assured that I would not have to pay Taxe Professionnelle or indeed any other taxes! In the 2 years of ownership I have paid 1800 euros in Taxe Professionnelle, 500 euros in Taxes Fonciere plus various amounts for VAT and maintenance on the common areas of the building.
Our accountants, the french tax administration and everybody else I have asked say that these taxes must be paid. Has anyone else had a similar experience?
This is the latest reply from the french tax authority:
With the documents you sent to us and that have been transmitted to the Recette élargie des Impôts de Saint Germain en Laye Nord, I am sorry to inform you that we have received a negative answer from that service, stated like this:
"In response to your fax, I must rectify the telephone answer that I made you very quickly: In fact, any renter (be it professional or non professional) is subject to a minimal professional tax in the city of his activity."
Robert
Has anyone else had a similar experience?
If there are any leaseback owners out there that are paying Taxe Professionnelle, I can confirm that this tax is NOT payable by private owners of leaseback properties.
I have paid this tax for three years and following a court decision in April this year in which the French courts said that taxe professionnelle must be paid by the management company and not the owner, I have received a part refund for the taxes paid by me.
Q.E.D Indeed!
Following the Court case take by Jean -louis Le Boulc'h who is a Avocat in France.
you as the owner has not to pay Taxe professionnelle.
Below is a extract from Investissement Conseil Fevrier 2007 which you should forward on to your accountant, this is what the Ministre in France said
(JOAN N° 92787 28 November 2006)
"La haute juridiction administrative a considéré que pas redevable de la taxe professionnelle le donneur à bail, propriétaire ou locataire, dont l'action se limite à fournir un logement garni de meubles aà un preneur, locataire ou sous -locataire. Dans cette hypothése, l'activité professionnelle, qui implique la mise en oeuvre de moyens matériels ou intellectuels, est exercée par le preneur lui-méme, qui dispose du localen vue de la sous-louer à des tiers et pour son proprecompte. A ce titre, le preneur à bail est , seul, redevable de la taxe professionelle. Des instructions ont été données aux services afin que les litiges en cour soient réglés conformément à cette solution, à laquelle l'administration a décidé de se conformer"
Up till now I have not been asked to pay this Taxe Professionelle and I hope I never am asked to pay it. My leaseback is not in Paris but in Torcy which is a town near Paris.However, every quarter shortly after the rent has been paid into my account I receive a bill from the rentor for r Releve Individuel de corpropriete - fonds de roulement et provisions which amount to 41.17 euros.to be paid to the rentor. I was not told about these charges either. A reader on this website advised me that I could ask for recuperation of these costs from the manager. I wrote to the manager about 4 weeks ago registered post with a copy of the receipt for the bills and ofcourse I am not surprised but I have heard nothing about the refund and no response to my letter anna smith38667.0026967593
MCCOS wrote: about taxe professionnelle.....
It is not common for leaseback owners to pay this. It is at the
discretion of the local authorities and can be charged particularly if
it is a business type leaseback in a large city.
Sorry , but I think you have to pay the taxe prof.
to reduce the amount, you need to buy several lease back in the SAME
commune...eg. I bought 2 lease back in Courbevoie La Defense, West of
Paris, and I pay only ONE tax prof., not TWO. About 360 euro per
year.
Enquiring at the Hotel de Ville, they say to me, that I pay only ONE
tax.prof. even if you own 2, 3 or more lease back in the same
commune.
Now I am looking to buy more lease back properties in Courbevoie, but
there is no more lease back properties for sale there...in Courbevoie...
I just check up : Article 58-I de la loi 65-997 du 29 novembre 1965:
it said: *about exemption of the Taxe Professionnelle:
Article 58-I de la loi 65-997 du 29 novembre 1965
Article qui dispense de taxe professionnelle les propriétaires qui louent des locaux faisant partie de leur habitation et
classés “meublés de tourisme”.
I am worry about the term: "faisant partie de leur habitation".
seamus weubles de toursime are not residence de tourisme - they are two different things
that should say meubles
meubles de tourisme are defined by the fact that owners must live on the site and rent out part of it i.e like a gite.
residence de tourisme can be charged tax professionelle but as mentioned earlier it is entirely based on whether the commune choose to claim it - currently only 20% of regions do bother to collect it
others things to note are that if you or your rental company are charged taxe dhabitation then you cant be charged taxe professionelle