The Accredited Tax Representative for Non-Residents

The taxe communale forfaitaire is a tax on the disposal, for payment, of bare land that has been reclassified as buildable
Article 1529 of the French Tax Code (CGI)

The amended finance bill for 2006 introduced a fixed-rate tax on the sale of land that has been reclassified as buildable.

We would draw your attention to the fact:
• that this tax is applicable even if the sale is exempt for length of ownership,
• and that it is obligatory for persons liable for the tax and that are domiciled outside France to appoint a tax representative.

Scope of the tax
This is a tax on the first disposal for payment of bare land that has become buildable since being classified in an urban zone, a zone to be urbanised, or a buildable zone.
It is introduced by resolution adopted by the municipal council or by the deliberating organ of the union of councils, when such organ is competent for drawing up local town planning documents.

Persons concerned by this tax
The tax applies to disposals by :
- individuals and companies liable for tax on income under the fiscal system of capital gains made on property by private individuals;
- persons domiciled outside France (individuals or companies) liable for payment under the conditions provided under Article 244bis A of the same Code.

Exemptions
The tax does not apply to the following cases:
- land that constitutes an adjoining and necessary dependence of the seller's principal residence on the day of the sale, or of a non-resident's home in France (if the grouped sale of the residence and adjoining land satisfies the conditions of exemption from capital gains tax);
- land classified in a buildable zone for more than 18 years ;
- land that is sold at less than 3 times its purchase price ;
- land for which a declaration of public interest has been decreed (expropriation) ;
- operations of land consolidation ;
- sales at a price below 15,000 Euros;
- sales signed before 31 December 2007 to a body responsible for social housing or to a municipal council for the purposes of assigning the land to a body responsible for social housing.

Calculating the tax
The tax is equal to 10% of the difference between the sales price and the purchase price, converted to current value based on the latest consumer price index published by INSEE.
If the purchase price is unknown, the tax is equal to 10% of the sales price reduced by one third.
The price means the actual price as stated in the deed, increased by the charges and indemnitites mentioned in Article 683 I §2 of the French Tax Code (CGI). It is reduced by the amount of VAT paid and the costs defined by decree that were borne by the seller in connection with this sale (supporting documents required).

Important
The tax is due by the seller and is payable in addition to the capital gains tax, if any. When the land being sold has been owned by the tax payer for more than 15 years, the exemption from capital gains tax is still valid and only the tax on the sale of reclassified land is due, subject to the exemptions mentioned above.

Tax Representative
It is obligatory to appoint a tax representative if the tax payer is domiciled outside France (except for individuals where the sales price is less than 150,000 Euros).

 

Select a French department
in the drop-down menu below
to find the list of councils
that have introduced this tax.

Council decisions
List of councils that have introduced the tax, and date of effect

Source : http://www.collectivites-locales.gouv.fr
(last site update: july 2016)
List not exhaustive, subject to verification
with the council concerned, because of the time
taken to publish the municipal council decisions.

Download the list of councils

Legislation concerning the Tax on the sale of reclassified land
- 8M-1-12 - 15 february 2012
- Section 1529 of the French Tax Code (CGI) (version applicable up to 28/9/2009)
- Article 1529 of the CGI (version applicable from 28/09/2009)
- Article 317 B Appendix II of the CGI
- Article 38-I of law 2009-323 of 25 March 2009
- Explanatory note by SARF

 

 

 

 

 

 

 

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