Tax: declare your property assets by 30 June!

The requirement for each taxpayer to declare all property assets they own is a new measure introduced in 2023. By 30 June at the latest, all owners must complete the process online.

At the end of April, the tax authority indicated it had received a declaration for 14 million properties, out of approximately 70 million held in the country. If you are a property owner, do not miss this requirement, as penalties are предусмотрены for late filers!

Why this new requirement?

With the removal of the council tax on properties occupied as a primary residence, the Direction Générale des Finances Publiques (DGFiP) needs a new tool to identify properties still liable for tax: secondary homes and vacant properties.

Individuals and companies, whether in joint ownership, with a life interest or through a property investment company (SCI), are all required to declare this year, and this will need to be renewed or updated annually.

The content of the declaration

For each property owned, you must indicate on your tax return how it is occupied (primary or secondary residence), whether it is vacant, occupied rent-free, or let to a third party. In the latter two cases, the occupant’s identity must be provided, except in the case of seasonal or short-term lets. For permanent lettings, the rent excluding charges and the occupation period of the property (lease start and end dates) must be specified.

It is also necessary to indicate the characteristics of each property, and the surface area calculation differs somewhat from usual practice: the data initially collected is that from notaires, who count all enclosed spaces: the kitchen and bathroom become separate rooms in this case. The total floor area is also required, which should be understood as the floor space rather than that obtained according to the Carrez law specifications.

How to declare your property assets?

Simply logging into your personal (or professional) area on the official tax website gives access to the “Manage my property assets” option. The situation to consider is that of 1 January 2023.

Although the data already known by the tax authority is pre-displayed, as with the income tax return, it is not possible to make the necessary corrections directly, if applicable. A message must be sent to the tax office, via the site’s internal messaging system or by any other means.

The risks in case of delay

While the fine currently предусмотрены is not heavy (£150), the sanctions remain unclear and could evolve if the requirement is not sufficiently followed.

However, the current trend is rather towards tolerance, and the tax authority even specifies that a failure may be exempt from sanction if the declarant encountered genuine difficulties. Each case will be assessed on its merits, through a personalised exchange with the tax office.

It is expected that the majority of delays will arise from the inability to quickly correct inaccurate information, particularly regarding the number of rooms and the surface area. The best course of action is then to contest the pre-filled information via a message, but to validate the declaration nonetheless. The tax office will make the corrections and you will be released from the obligation. There will be time to contact them again later if an incorrect tax assessment is received.