Owner of a furnished property? There is a tip to know to avoid accumulating costs and it happens in your calendar.
In recent years, taxation on housing has evolved. The housing tax, for example, has been abolished for main residences since January 1, 2023. However, this tax remains in force for second homes and vacant accommodation. If your property falls into one of these categories, you risk paying a significant amount each year. The good news? There is a way to avoid this, as long as you act at the right time.
At the start of each year, the tax administration takes stock: what is the condition of your accommodation? If the property is empty, used as a second home or abandoned, you will be subject to housing tax. The amount varies depending on the location and rental value of the property, but it can quickly reach several hundred or even thousands of euros in certain areas. On the other hand, if your accommodation is rented to a person who makes it their main residence, the rule changes. Not only do you escape the tax, but it falls on the tenant – and in this case, they are generally not subject to it thanks to the recent removal. In summary, it all depends on when you bring a tenant into your property.
So what is the date to prioritize? As the government website indicates, everything depends on January 1. This key date determines the status of your accommodation for the entire tax year. If the property is empty or declared as a second home on that day, the tax will be applied to you. But if your accommodation is occupied by a tenant to make it their main residence, you avoid this charge. You will have understood, find a tenant before the end of the year and make sure that the lease starts no later than January 1st. If you rent your property on January 2, 5 or even 20, it will be up to you to pay.
Please note that this housing tax is calculated based on the cadastral rental value of the accommodation, by applying a rate voted by the local authority where the property is located. The amount of the tax is then obtained by multiplying the rental value by a tax rate. In short, we might as well tell you that the bill can be steep!