General Taxes in France

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General Taxes in France

This section provides information on some of the general taxes that must be paid by residents and/or home owners in France. This does not cover income tax.

Tax in France is collected by the department of the Trésor Public to pay for public services. The main taxes include:

• Property Taxes - taxe foncière and taxe d'habitation
• VAT (Value Added Tax)
• Wealth Tax
• Stamp duty

The French tax authorities (Direction Générale des Impôts) have published a 105 page document in English called The French Tax System, which explains all French taxation due by residents of France. This includes details on income taxes (corporation tax, social charges and the tax on income), property tax (registration taxes, wealth tax and more), direct taxes (business tax and residence tax - taxe professionelle and taxe d'habitation) and taxes on expenditure such as value added tax (TVA).

• For the document The French Tax System: Click here (PDF in English) or here (PDF in French)

Stamp Duty

Stamp duty on notarised deeds was abolished in January 2006. However, stamp duty must be paid on certain games of chance such as the lottery.

It must also be paid for certain administrative documents, for example residence permit (Carte de séjour) applications and renewals in the form of a timbre fiscal. These can be bought from certain bars (bar tabacs) and from tax offices.

VAT - Value Added Tax in France

VAT (Taxe sur la valeur ajoutée - TVA) is a consumption tax paid on certain goods and services purchased in France and is included in the sale price of these goods and services.

There are four rates of VAT in France:

• 19.6 percent: This is the standard rate
• 7 percent: This applies to books, restaurants, transport, renovation/improvement works, press publications and certain medical drugs
• 5.5 percent: This applies to food, water and non alcoholic beverages, special equipment for the disabled and school canteens
• 2.1 percent: Special rate - applies to medical drugs reimbursed by the French social security