French Property Taxes for US Owners: Taxe Foncière, IFI and What Selling Costs

French property taxes for foreigners run on one principle that catches Americans out anyway: the bills follow the property, not the person. Buy an apartment in Nice and never spend a night in it, and you still owe an annual tax to the commune, an annual declaration to the tax office, and a share of the gain the day you sell. None of that turns on your visa or your residence. Some of it turns on your passport, and not in your favor. This article is for informational purposes only and is not tax or legal advice; consult a qualified cross-border tax professional before making any filing decision.

Does being American change what you pay on a French property?

On the annual bills, no. On the sale, it can, in up to three ways, because the main reliefs in French property taxation are written for residents of the European Economic Area and Switzerland, and a US citizen on US Social Security is in neither group.

The first difference is the social levy. A non-resident who is affiliated to a compulsory social security scheme in an EEA country or Switzerland pays only the 7.5 percent prélèvement de solidarité, the residual levy left once CSG and CRDS drop away, on a French property gain. Everyone else pays the full rate, which service-public puts at 17.2 percent for a property gain in 2026. On a 200,000 euro taxable gain that gap is 19,400 euros, decided by which social security system you happen to be in.

The second is the 150,000 euro exemption. France lets a non-resident who lived in the country for at least two years in a row, at any time before the sale, exempt up to 150,000 euros of net taxable gain on one French home. The law (article 150 U, II-2° of the tax code) reserves it to nationals of an EU or EEA state, so a Belgian who spent two years in Lyon qualifies on the face of the text. An American is not shut out for good: the tax administration also admits nationals of other states who can invoke a non-discrimination clause of a tax treaty and who are in the same situation as a French national would be (BOFiP BOI-RFPI-PVINR-10-20, paragraph 270). The France-US treaty has such a clause in its Article 25, so an American who lived in France may qualify, but it is judged case by case and has to be confirmed before the sale. The relief is for an individual selling a home: the same page says it does not apply to a gain made by a company or partnership, even when its members meet the conditions, so the sale of shares in an SCI is a different question.

The third is the representative. A seller resident outside the EU and EEA whose sale price passes 150,000 euros has to appoint an accredited tax representative in France, at their own cost, before the notaire can complete the sale. An EU seller in the same office, on the same day, at the same price, does not.

Which of the three lands on you turns on your affiliation, residence and nationality on the day you sell. A US retiree usually collects the full social levy and the representative, and has to check the 150,000 euro exemption. Find out which ones your sale triggers.

The four bills, who sends them, and when they land

Three annual taxes can reach a French property, and a fourth reaches large holdings. Every one of them is settled on your situation on 1 January, which is the date to watch when you buy, sell, furnish or empty a property near the turn of the year.

There is no fifth line for non-residents. None of the bills above is set by your nationality: they turn on who owns the property on 1 January and, for the IFI, on where your tax domicile sits. What differs for an American owner is not the rate. It is how hard these bills are to receive and to pay from abroad.

Taxe foncière: the bill every owner gets

The taxe foncière is owed by whoever owns the building on 1 January of the tax year, and service-public is explicit that it is still owed when the property is let to a tenant. It arrives with the taxe d’enlèvement des ordures ménagères on the same avis. The refuse tax is recoverable from a tenant as part of the recoverable charges; the taxe foncière is not.

What happens if you sell in March

The owner on 1 January pays the whole year, and the tax office does not care that the property changed hands in May. The avis arrives in September in the seller’s name, and the seller pays all of it. What happens in practice is a private arrangement at the notaire’s office on signing day: buyer and seller split the year pro rata on the basis of the last known bill, and the buyer reimburses the seller in advance. That agreement binds the two of them and nobody else. If it is not written into the acte, there is nothing to enforce later, and an American seller who has already left the country is chasing a stranger for a few hundred euros.

Why nobody can quote your bill before you buy

The base is half the valeur locative cadastrale, a theoretical annual rent the tax administration attributes to the property, revalued each year. The rates on top are voted by the commune and the intercommunal body, which is why two similar houses forty minutes apart can carry bills that differ by a factor of two. The number that matters is on the seller’s last avis, and asking for a copy of it before you sign is the cheapest due diligence in the whole purchase. It belongs on the same list as the diagnostics when you are buying property in France as an American.

Paying it from a US bank account

This is the part that surprises owners who kept everything in the United States. Service-public sets out the payment options for the 2026 taxe foncière and closes with a condition that rules most of them out for a US-only household: the account you pay from has to be domiciled in the SEPA zone. A Chase or Schwab account is not. In practice, owners without a French or European account end up paying by international transfer, which is slower and easier to get wrong than a direct debit, and a late payment carries a 10 percent surcharge under articles 1730 to 1731B of the tax code. If you plan to hold the property for years, opening a French account as a US citizen is less about convenience than about not missing an October deadline from six time zones away.

The second-home tax and the 60 percent surcharge on top of it

The taxe d’habitation was abolished on main residences on 1 January 2023, and it survives in full on second homes. If your French property is furnished and it is not your main residence, you owe it for the whole year based on the situation on 1 January, whether you were there for six months or six days. If the second home is a Paris apartment, buying an apartment in Paris as an American covers the Paris rules on renting it to tourists.

Second homes get no abattements at all, and communes in a zone tendue may vote a majoration of 5 to 60 percent on their share of the tax (article 1407 ter of the tax code). Those are the areas where the taxe sur les logements vacants applies: dense urban areas of more than 50,000 inhabitants with a marked imbalance between housing supply and demand, and, since 2024, communes with a high proportion of homes that are not main residences. That second category is what pulled in the coastal and mountain towns where Americans most often buy a holiday place. The majoration is not automatic. It needs a vote of the municipal council, so the only reliable way to know is the seller’s avis or the mairie.

A furnished second home and an unfurnished empty one are not taxed the same way, and the difference is easy to miss. Until the 2026 tax year, an unfurnished home left empty can fall under the taxe sur les logements vacants in the areas described above, or under the taxe d’habitation sur les logements vacants in communes that voted it. From the 2027 tax year the finance law for 2026 replaces both with one tax, the taxe sur la vacance des locaux d’habitation. Article 1406 bis of the tax code makes it due on a home that has been vacant on 1 January for at least one year in a commune with a marked imbalance between housing supply and demand, and for at least two years elsewhere, and it excludes a home occupied for more than 90 consecutive days in the reference period. So an unfurnished home does not necessarily escape every local tax other than the taxe foncière.

Three grounds excuse you from the majoration, and they are narrow: your work obliges you to live near the second home rather than at your main residence, your former main residence became a second home when you moved into a long-term care establishment, or the property cannot be lived in for reasons outside your control. Claims go to the Service des impôts des particuliers where the property sits.

The annual declaration foreign owners rarely hear about

Every owner of residential premises in France has to file a déclaration d’occupation, and service-public sets the penalty at 150 euros per property for a missing or inaccurate one. It is filed in the Gérer mes biens immobiliers section of your impots.gouv.fr account, and it is due before 1 July whenever the property has never been declared or anything about its occupation has changed.

What you declare is what the place is used for: main residence, second home, vacant, or occupied by someone else. If a tenant or a family member lives there, you have to identify them by name, first name, date of birth, and country, département and commune of birth. That last field is the one that stalls American owners, because it is not information a US lease ever collects.

The trap is structural rather than complicated. This declaration is how the tax office decides whether to send you a taxe d’habitation bill, so it applies to owners who have no French income, no French tax return, and sometimes no impots.gouv.fr account at all. Nothing in the purchase process prompts it. Owners who cannot file online can write to or visit the Service des impôts des particuliers of the place where the property sits, which stays responsible for local taxes even for non-residents.

Where the IFI starts and why most owners never reach it

The impôt sur la fortune immobilière applies when a household’s net taxable real estate passes 1,300,000 euros on 1 January, a figure service-public restates for 2026 in its fiche on who and what the IFI covers. If your tax domicile is abroad, only French property counts, held directly or through a company for the part of its value that is real estate, so a house in Colorado is outside the calculation entirely. If your tax domicile is in France, property in France and in the United States both count, with one exception for new arrivals: someone who was not tax-resident in France in the five calendar years before moving their tax domicile there is taxed only on French property until 31 December of the fifth year after the year of arrival (article 964 of the tax code). A main residence is valued after a 30 percent reduction, but only a home the owner lives in as a main residence gets it (article 973), so a non-resident’s second home in France does not. Debts tied to the property come off the total, which is why an apartment worth 1,500,000 euros with 300,000 euros of mortgage left on it does not create a liability.

One detail is worth carrying over from the annual bills: the taxe foncière due on a taxable property is a deductible debt for IFI purposes, and the taxe d’habitation is not, because it falls on the occupant rather than the owner. The décote and the finer points are covered in our guide to the IFI and the five-year grace period, so only the arithmetic is repeated here.

The tax is computed on the market value of the taxable real estate on 1 January, less the deductible debts. Under article 977 nothing is taxed up to 800,000 euros, the part between 800,000 and 1,300,000 euros is taxed at 0.50 percent, the part from there to 2,570,000 euros at 0.70 percent, and higher bands run from 1 to 1.50 percent. Before any reduction, net taxable real estate of 2,000,000 euros gives an IFI of 7,400 euros: 2,500 on the first band and 4,900 on the second. It is declared on form 2042-IFI, filed with the income tax return, or on its own with form 2042-IFI-COV when you file no personal income tax return, as service-public explains.

What France takes when you sell

A French property gain is taxed at a flat 19 percent income tax plus 17.2 percent social levies, so 36.2 percent of the taxable gain, and service-public confirms non-residents are taxed on the same basis as residents. The notaire does the work: they calculate the gain, file the declaration, and pay the tax to the land registry office before you see the proceeds.

The surtax above 50,000 euros

A taxable gain above 50,000 euros attracts an extra tax of 2 to 6 percent (article 1609 nonies G of the tax code), scaled by the size of the gain and calculated by the notaire on form 2048-IMM-SD. It does not apply to exempt sales or to building land. It is computed on the gain after the holding-period reductions, which is why a long-held property can clear the threshold on paper and never pay it.

The 22-year and 30-year clocks

Holding period reduces the taxable gain, on two separate schedules that run at different speeds. Nothing happens for the first five years.

The consequence is that a property sold at 25 years pays no French income tax on the gain and still pays social levies on 45 percent of it. Full French exemption arrives only at 30 years.

Before the reductions, the gain itself can be reduced. The acquisition price can be increased by the purchase costs, either at their real justified amount or at a flat 7.5 percent of the price, and by works, either justified or at a flat 15 percent of the purchase price once the property has been held more than five years. On an old house bought for 300,000 euros, the flat allowances alone remove 67,500 euros from the gain without a single receipt.

The tax representative you have to hire

If you live outside the EU and EEA and your sale price passes 150,000 euros, you must appoint a représentant fiscal accrédité before the sale completes, and the notaire cannot release funds without their signature on the gain declaration. The representative guarantees the French tax to the administration and charges for carrying that risk, usually as a share of the sale price; impots.gouv.fr lists who may act as a representative and how accreditation is granted, and that is where to check the going terms before you sign a mandate. What lifts the obligation is where you are domiciled, not which passport you hold: the automatic dispensation goes to a seller domiciled, established or constituted in an EU or EEA state that has the right assistance agreements with France, which today means the EU plus Iceland and Norway. A US resident never qualifies on that ground, whatever their nationality. The other automatic cases are a sale price of 150,000 euros or less, assessed per seller, and a gain already exempt from both income tax and social levies because of the holding period. The tax administration’s own doctrine adds a case that the impots.gouv.fr summary leaves out, the sale of the home that was your main residence in France, so ask your notaire to check it against the current BOFiP text before you hire anyone. One point on the threshold: in an indivision it is measured against each co-owner’s share, but a married or PACS couple taxed together counts as a single seller, so the whole price is what is tested.

The exemptions you can still reach

Two are worth knowing. Selling your actual main residence in France is fully exempt, with no holding period and no cap. And a non-resident selling the home that was their main residence in France can be exempt from the levy on non-residents under article 244 bis A of the tax code, on conditions that all have to be met together. The home must have been your main residence in France on the date you moved your tax domicile abroad. The sale must happen no later than 31 December of the year following that move, so a departure in 2026 means a sale completed by 31 December 2027. And the home must not have been made available to anyone, free or paid, between the move and the sale. The article also sets a condition on where you move: an EU member state, or a state that has signed with France both an administrative assistance convention against tax fraud and a mutual assistance convention on tax recovery, and that is not a non-cooperative state. It names no country, so an American cannot assume the condition is met. You also lose this exemption if you already used the 150,000 euro one.

That window is short. An American who moves back to Boston in June 2026 and rents the Paris flat out for a year while deciding what to do has spent the exemption without knowing it existed. This is one to confirm on your own facts before you plan a sale around it.

This is the point where the sequencing matters more than the rules. The order of a departure, a letting and a sale can move the French bill by tens of thousands of euros, and none of it can be fixed after the acte is signed. A 30-minute consulting call with Maxime sets out the order to do things in for your situation, as general information and practical sequencing rather than an individual legal or tax opinion, which is cheap next to a one-year exemption window you find out about in retrospect.

What changes if you rent the place out

Letting a French property is where 2026 quietly split into two regimes. The loi de financement de la sécurité sociale for 2026 raised the CSG on most capital income from 9.2 to 10.6 percent, and service-public’s fiche on social levies sets out which categories moved and which did not. For a non-resident owner, unfurnished rental income stays at 17.2 percent in social levies. Furnished letting outside professional status now sits at 18.6 percent. Property gains stayed at 17.2 percent.

That 1.4 point gap is small on its own and it lands on top of a set of differences that were already there. Furnished letting is taxed as business income rather than property income, it carries its own accounting, and since 15 February 2025 the depreciation deducted under the non-professional furnished regime is added back into the acquisition price when the property is sold, which enlarges the gain. Americans arriving with a US short-let mental model tend to reach for the furnished option first, because it is what a vacation rental looks like at home.

How the taxe foncière counts against rent depends on the regime. For a bare letting taxed under the real regime, the taxe foncière is deductible from property income, but the refuse tax is not, because the tax administration lists it among the taxes that fall on the occupant (BOFiP BOI-RFPI-BASE-20-50). Under the micro-foncier regime the flat 30 percent allowance is deemed to cover all the costs of the property, so nothing more can be deducted (BOFiP BOI-RFPI-DECLA-10). The rent itself stays taxable in France when you are a non-resident: article 197 A of the tax code sets a minimum rate of 20 percent on income up to the top of the second bracket of the scale and 30 percent above it, unless you can show that the rate on your worldwide income would be lower.

Two administrative consequences follow. The refuse tax becomes recoverable from the tenant, so ask for it rather than absorbing it. And the occupancy declaration has to name the tenant, which means collecting their birth commune at the start of the lease rather than the following June. Rental income also brings you into the French filing system, which is a different exercise from the annual property bills and is covered in our walkthrough of your first French income tax return.

What the IRS does with the same property

The United States taxes its citizens on the same property, and the two systems do not line up. Between them sits the France-US tax treaty of 31 August 1994. Its Article 6 lets France tax the rental income from French real property, and its Article 13 lets France tax the gain on selling it, while Article 24 sets out how each country relieves the double taxation that results (IRS technical explanation of the treaty). How that relief works depends on the kind of income and on US rules, which this guide does not analyse. Three points decide most American outcomes.

The taxe foncière is not the deduction a US property tax bill would be. Topic 503, last reviewed on 24 September 2026, lists the deductible categories as state, local and foreign income taxes (or state and local general sales taxes), state and local real property taxes, and state and local personal property taxes. Foreign income taxes sit in the first category. Foreign real property taxes do not appear at all. The same page also puts service charges for water, sewer and trash collection in the non-deductible list, which is where the refuse tax sits in any event.

The 19 percent and the social levies on a sale are a different matter, because those are income taxes, and foreign income taxes can be taken as a credit or a deduction. Most Americans take the credit on Form 1116, in the passive basket, against the US tax on the same gain.

The exclusion on a home sale can apply here too. IRS Topic 701 allows up to 250,000 dollars of gain to be excluded, or 500,000 dollars on a joint return, where you meet an ownership test of 24 months out of the five years before the sale and a use test of 24 months as your main home in the same period. The tests are written around your main home and the time you owned and lived in it. Publication 523 carries the full eligibility rules, and it is the page to read rather than to assume.

The mismatch that costs the most is the holding-period one. France clears income tax on a gain at 22 years and social levies at 30. The United States has no equivalent. A stone house bought in 1994 and sold in 2026 is entirely free of French tax on the gain and entirely taxable in the United States, with no French tax paid to credit against it. Currency compounds it: the gain is computed in dollars, so three decades of euro movement sits inside a number that has nothing to do with the French calculation. If you are weighing this against a US property, the US side of a home sale runs on its own rules.

What to do before the next 1 January

Pull the seller’s last taxe foncière avis and your Gérer mes biens immobiliers page, in that order. The first tells you what the property actually costs to hold. The second tells you whether the tax office thinks it is a main residence, a second home or vacant, which is what decides the second bill.

Most owners can run the annual side alone. The bills are computed for you, the declaration takes twenty minutes once you have an account, and the only real risks are a missed October deadline and a stale occupancy status. The sale is different. Once a representative, a departure date, a letting period and a US return are all in play at once, the decisions interact and they are close to irreversible after signing.

If you are within two years of selling, or you have just left France with a property still in your name, book a consulting call. Thirty minutes with Maxime, 249 dollars, covering the order to do things in and what it costs on both sides.

FAQ

What happens if I miss the taxe foncière deadline?

A late payment carries a 10 percent surcharge under articles 1730 to 1731B of the code général des impôts. For 2026 the online deadline is 20 October at midnight, and 15 October for any other payment method, which is only available if the bill is 300 euros or less. Filing a complaint about the bill does not postpone the payment.

Do I owe anything if the property sits empty all year?

Yes. The taxe foncière is owed whatever the property is used for. If it is furnished and not your main residence, the taxe d’habitation on second homes applies for the whole year on the basis of 1 January, even when you only use it for part of it. Service-public notes that the vacant housing taxes target unfurnished premises instead.

Do I need a French tax number to file the occupancy declaration?

The declaration is filed in your personal space on impots.gouv.fr, which means an account and a numéro fiscal. Owners who cannot file online may do it by post or at the counter of the tax office covering the property. For local taxes, impots.gouv.fr says they remain the sole competence of the Service des impôts des particuliers of the place where the property is located, even for non-residents.

Can I use flat allowances instead of keeping renovation receipts?

Yes, within limits. On a sale, the acquisition price can be raised by a flat 7.5 percent of the purchase price for acquisition costs, and by a flat 15 percent for works once the property has been owned more than five years, with no receipts required. If your real documented spend is higher, use the real figures instead. You choose per item, not once for the whole calculation.

Can an American ever get the reduced 7.5 percent social rate?

Only through affiliation, not nationality. The reduced rate applies to people covered by a compulsory social security scheme in an EEA state or Switzerland, so a US citizen working in Germany and insured there can qualify while a US citizen on Medicare cannot. The claim needs a signed statement of your position and supporting evidence if the tax office asks.