As summer draws to a close in the South of France, the arrival of autumn often feels rather abrupt. No sooner has summer ended than we find ourselves diving straight into the local tax season… writes Tracy Leonetti, founder of LBS in France. Read more about that below.
With the change in seasons, life at LBS HQ quickly returns to its usual rhythm as we prepare for our monthly Ask Us Anything webinar. Amid the flurry of activity, it’s easy for new regulations to go unnoticed, so we remain committed to sharing key updates that may affect your property affairs before the end of the year.
FURNISHED RENTAL CHANGES
Significant changes are coming for furnished rentals in 2025, both in terms of paperwork and taxation.
By May 20, 2026, all furnished tourist accommodation rentals must be registered online. Property owners renting out such accommodations will be required to provide proof that the property is their primary residence, such as a tax notice showing the address of the accommodation. These rules stem from the law of November 19, 2024, which updated the obligations for furnished rentals.
For those with furnished rentals under the micro-BIC tax system, new fiscal rules take effect in 2025.
For unclassified furnished tourist accommodation rentals:
- The turnover threshold for qualifying for the micro-BIC regime is lowered from €77,700 to €15,000.
- The tax reduction rate associated with this micro bic regime is reduced from 50% to 30%.
For classified furnished tourist rentals and guest rooms:
- The turnover threshold for qualifying for the micro-BIC regime is lowered from €188,700 to €77,700.
- The tax reduction rate associated with this micro bic-regime is reduced from 71% to 50%.
If you are affected by these changes, you can find further details on the official Service Public website.
THE PROPERTY TAX
The taxe foncière, or property tax, applies to both residential and commercial real estate. Its calculation depends on the type of property — specifically whether it includes permanent buildings — and the revenue collected helps fund local community services.
Types of Property Tax
- Taxe foncière sur les propriétés bâties (Tax on built properties): applies to permanent buildings such as houses and apartments, as well as related structures like garages, pools, and gardens.
- Taxe foncière sur les propriétés non bâties (Tax on non-built properties): applies to land without permanent buildings, for example, land with caravans, mobile homes, or agricultural structures like barns.
Who Is Liable for the Property Tax?
The person who owns the property on January 1st of the year in which the tax bill is issued is responsible for paying the taxe foncière.
Exceptions to Liability
Usufruct holders: When a property is occupied by individuals who hold a usufruit (a long-term or lifetime right to use or rent out a home), these occupants are responsible for paying the property tax.
Exemptions for New Builds
Some towns offer a two-year exemption from the property tax for new constructions. To qualify, you must declare your new build within 90 days of completing the work. It’s best to confirm eligibility and compliance with your builder or constructor.
Additional Obligations
Even if you qualify for an exemption, you are still required to pay waste collection charges (ordures ménagères).
When and How to Pay
Bills are issued in September, and payment is due by October 15th. If you pay online, the amount will be debited from your account ten days later. Alternatively, you can opt for ten monthly instalments from January to October.
You can view your taxe foncière in your personal space on www.impots.gouv.fr.
BANKING CHANGES
No more recipient errors! Another financial update that you might have missed.
From October 9, 2025, banks and payment institutions will be required to inform clients if the beneficiary’s name and IBAN provided for a transfer do not match the recipient’s official bank account information.
This new European regulation aims to protect users from fraudulent IBAN use and transfer errors. One of its key requirements is that banks must offer a Verification of Payee (VoP) service: before executing a transfer, the payer’s bank will check if the recipient’s name matches the provided IBAN. If it doesn’t, the bank will alert you.
LBS advice: Before making a bank transfer, double-check that the beneficiary’s name, account number, and bank details exactly match their official account information to avoid any delays.
At the end of the day, France, like all countries, regularly updates its regulations — and for busy individuals, it can be hard to keep up. To stay informed about the latest changes, we invite you to subscribe to the LBS newsletter via our website.
At LBS in France, I help individuals and families make informed decisions, manage administrative documentation, and navigate the complexities of French administration with confidence and clarity.
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