Beware of unpleasant surprises at the end of the year.
Watch your wallet, a new bill is coming to all tenants in France. If real estate taxation now weighs exclusively on owners, renting a property does not mean being completely exempt from some charges after the abolition of house tax. You still have to plan it into your spending.
A few weeks ago all the owners received an important tax document: the tax bill. If most people simply look at the total amount to be paid to the tax authorities, written in large format on the first page, all those who have a property rented for the year must focus on the second part of the document. Page n°2 details the calculation of this local tax and allows you to understand which part of the total is paid to which community. Among these elements, one is the responsibility of the tenant.
In the center of all columns, the tax affects only local residents. This is the tax on domestic waste, which can also be indicated under the name “TEOM”. This is in the fifth column. The amount to read is the one indicated on the “2024 Contribution” line.
This is not regulated at national level: generally the intermunicipal authorities decide on the tariff applied. Consequently, the amount varies from a few dozen to several hundred euros per home, depending on the property and the city in which it is located.
If the property tax must be paid in full by the owner, it is up to the tenant to pay the TEOM. The owner can then request a refund of the amount. Now that the exact amounts are known, many tenants should be forced by their landlord to pay them this debt in addition to their monthly rent.
However, everything depends on what the rental contract provides: either the owner is expected to request receipt or payment of the real estate tax, or this is already provided for in the rent, in which case the recovery will take place. in case of insufficient supply on the anniversary date of the rental agreement.
Regardless, tenants should remember to include this expense in their budget. Because, like everything else, the tax has obviously also increased again. It is difficult to make a precise estimate given the volatility of the tax. However, for those who paid it in 2023, there should be an increase of around 4-5% compared to the last amount.
Interview between Time.news Editor (T.E.) and Real Estate Tax Expert (R.E.T.E.)
T.E.: Good morning, and thank you for joining us today. As the end of the year approaches, many of our readers may be unaware of changes in real estate taxation in France, especially concerning tenants. Can you explain what’s going on?
R.E.T.E.: Good morning! Absolutely, it’s critical for tenants to be aware of these changes. With the recent abolition of the house tax in France, many tenants believe they are exempt from real estate taxes. However, that’s not entirely the case. While the house tax mainly affected property owners, tenants are still liable for specific local expenses linked to the property.
T.E.: That’s interesting. Could you elaborate on what these specific charges might be and how they impact tenants?
R.E.T.E.: Of course. When tenants receive their rental agreements, it’s vital they understand that while they don’t pay the house tax directly, their rental agreement may include provisions where they’re responsible for certain local taxes, which are itemized in the owners’ tax bills. If you look at the second page of that tax document, it breaks down the total amount owed and specifies taxes for which tenants could be liable. It’s critical information that tenants need to consider when budgeting.
T.E.: So, if a tenant is planning their finances for the new year, what should they keep in mind regarding these potential costs?
R.E.T.E.: Very good point. Tenants should factor in these additional local charges into their monthly budget, as this can lead to unexpected expenses. If they haven’t accounted for these potential costs, they might face some unpleasant surprises. It’s always wise for tenants to communicate openly with their landlords about these charges to ensure they are fully informed.
T.E.: Communication does play a key role, doesn’t it? Are there any legal obligations for landlords to clearly outline these taxes in the rental agreements?
R.E.T.E.: Yes, landlords are legally obligated to provide transparency regarding all charges related to the property. They should make it clear in the lease what aspect of the local taxes the tenant is responsible for. This ensures that both parties are on the same page and helps avoid disputes later on.
T.E.: With various municipalities imposing different local charges, how can tenants educate themselves about what to expect?
R.E.T.E.: I advise tenants to research the specific tax rates and items listed in their local government’s property tax documentation. Many municipalities provide detailed guides on their websites, and there are also tenant advocacy associations which can offer insights and support. Understanding the specifics of local taxation will empower tenants to budget effectively.
T.E.: Lastly, what advice would you offer to tenants who might be newly aware of these potential charges?
R.E.T.E.: I would encourage them to engage in proactive discussions with their landlords, review their lease agreements carefully, and always keep an eye on the local government announcements regarding tax changes. Being informed and prepared will make a significant difference in managing their finances.
T.E.: Thank you for your valuable insights today! It’s crucial for tenants to stay informed, especially as we head into a new year with these financial changes looming.
R.E.T.E.: Thank you for having me! I hope this information helps tenants prepare better for what’s ahead.