Property tax: you can benefit from an exemption under certain conditions

modified: 2022-12-23 18:49:02

Be aware that by carrying out work to reduce your ecological footprint, you will be entitled to an exemption from property tax.

  Property tax: you can benefit from an exemption under certain conditions

After an increase in 2022, the property tax will increase further in 2023 and for years to come. There is, however, a little-known way to escape it. Simply carry out work on a dwelling completed before 1989 . Your community can grant you a tax exemption or deduction after energy renovations. Granted under certain conditions, we tell you all about this property tax exemption.

How does this property tax exemption work?

The Tax Code lists several situations which give the right to an exemption from this property tax. In other words, if the conditions are met, the owner does not pay the property tax .

On the other hand, the granting of this advantage depends on each territory . According to the site, “this exemption (50 or 100%) must be voted on by deliberation of the Territorial Communities before October 1 of a year to be applicable on January 1 of the following year. »

Clear, if your community territory voted for this provision last October, you will be able to obtain the deduction or exemption from January 2023 .

“For 2023, just over 450 municipalities are concerned. To check if this is the case for yours, contact your town hall or your public finance center. (…) Most of the municipalities concerned opt for a total exemption from property tax, but some are content to grant an exemption of only 50%, ”explains the site Que Choisir.

What type of property tax is it?

The there are two types of property tax :

  • The property tax on built properties (TFPB)
  • The property tax on unbuilt properties (TFPNB)

The property tax targeted by these energy renovations concerns the first, i.e. the TFPB. This last, is in fact a tax paid every year by the owners of a building for industrial, commercial or professional use. It can be a property rented, loaned, unoccupied, occupied as a second home, or other. The amount of this property tax varies by state , the location, the surface and the use of the accommodation.

What are the steps to benefit from the exemption from the TFPB

To qualify for the property tax exemption, your home must be completed “before January 1, 1989”. In addition, the work must be carried out by professionals. These are the same works made them eligible for the energy transition tax credit (CITE).

The list of eligible devices and materials is in article 18 bis of annex IV of the General Tax Code . But the work generally focuses on:

  • Boiler change,
  • The change of heating mode,
  • thermal insulation,
  • replacement of windows,
  • Etc.

For that, you should at least do :

  • Or an expense of 10,000 euros during the year preceding the exemption,
  • That is an expenditure of 15,000 euros during the 3 years preceding the exemption.

Once the work is complete, you will need to go to the tax department of the location of the assets to file a declaration. But you can also send this request on the website .

This request must provide information on plain paper:

  • The identification elements of your property and its delivery date
  • Evidence of the nature and amount of your expenses.

How long does this property tax exemption last?

The exemption starts from the year following the total expenses and filing the application on the website . This tax benefit is valid for 3 to 5 years depending on the case.

If you carry out such work in 2023, you will get an exemption on your TFPB in 2024, 2025 and 2026. They just have to end and pay in the same year and provided that the application is filed before December 31, 2023. This means that if you delay submitting your application or do not finish the work only in 2024, you will not be exempt until 2025 . On the other hand, the tax service warned that this procedure “cannot be renewed within ten years of the end of the exemption. »

That's not all. New home owners can also benefit from a 40% exemption , 90% or 100% of the TFPB for two years. According to Que Choisir, local authorities can even grant an exemption of 50% to 10% of property tax from a period of more than 5 years for “new housing whose level of energy performance is higher than that imposed by the regulations. »

Source : Quechoisir