French General Tax Code
In forceI. - New constructions allocated to the principal dwelling and financed to the extent of more than 50% by means of loans assisted by the State, as provided for in Articles L. 301-1 et seq. of the Construction and Housing Code, are exempt from property tax on built properties for a period of fifteen years from the year following that of their completion.
The exemption applies to the construction of new social rental housing, within the meaning of 1° of the I of article 278 sexies, allocated to the principal dwelling, when more than 50% is financed by a regulated loan, within the meaning of 2° of the same I. This threshold is lowered to 30% when these homes have been the subject of a transfer of property rights under the conditions mentioned in 1° of B of II of the same article 278 sexies. In Guadeloupe, French Guiana, Martinique, Mayotte and La Réunion, the exemption applies to the construction of new homes for rental purposes and allocated to the main residence when they are financed to the tune of more than 50% using a loan provided for in the article R. 372-1 of the Construction and Housing Code. For constructions financed under the conditions set out in articles D. 331-14 to R. 331-16 or articles D. 372-9 to D. 372-12 of the Construction and Housing Code, the financing condition is assessed by taking into account subsidies paid by the State, the National Agency for Urban Renewal, local authorities and public establishments for inter-communal cooperation, as well as subsidies or loans granted under the participation of employers in the construction effort.
However, the duration of the exemption is reduced to ten years for home-ownership housing for the completion of which no loan application was submitted before 31 December 1983.
This exemption does not apply to housing financed by means of the repayable interest-free advance provided for by Article D. 317-1 of the Construction and Housing Code.
I bis. - For the housing constructions mentioned in the second paragraph of I, the duration of the exemption is extended to twenty years when these constructions meet energy and environmental performance criteria higher than those provided for in Title VII of Book I of the Construction and Housing Code.
To benefit from this period of exemption, the person liable for the tax must attach to the declaration provided for by article 1406 a certificate drawn up at departmental level by the administration responsible for equipment stating that the construction complies with the energy and environmental performance criteria.
The technical definition of these criteria, the content as well as the procedures for issuing the certificate are set by decree in the Conseil d'Etat.
I ter. - For the housing constructions mentioned in the second paragraph of I, the duration of the exemption is extended to twenty-five years, when they benefit from a decision to grant a subsidy or assisted loan taken between 1 July 2004 and 31 December 2026.
The duration of the exemption mentioned in I bis is extended to thirty years for constructions that benefit from a decision to grant a subsidy or assisted loan taken between 1 July 2004 and 31 December 2026.
I quater. - The construction of new housing for rental purposes and allocated to the principal dwelling belonging to the association mentioned in article L. 313-34 du code de la construction et de l'habitation or to non-trading property companies in which this association holds the majority of the shares when they are financed to the extent of more than 50% by subsidies paid under the participation of employers in the construction effort and when they benefit from the provisions of the second sentence of the last paragraph of A of II of article 278 sexies. The exemption period is extended to twenty-five years for buildings that benefit from a decision to grant a subsidy taken between 1 March 2007 and 31 December 2018.
II. - For home-ownership housing located in a group of buildings or a property complex subject to the safeguard measures provided for in Articles L. 615-1 to L. 615-5 of the French Construction and Housing Code, the exemption period referred to in I is extended by five years.
Before 31 December each year, the commission referred to in article L. 615-1 of the Code de la construction et de l'habitation shall send the competent authority of the State in which the housing is located a list of housing units and their owners that meet the conditions mentioned in the first paragraph.
III. - The construction of new dwellings allocated to the principal dwelling that are the subject of a rent-to-own contract pursuant to the loi n° 84-595 du 12 juillet 1984 defining lease-to-own property are exempt from property tax on built properties for a period of fifteen years from the year following that of their completion when they are the subject, under conditions set by decree, of an agreement and an approval decision taken by the State representative in the département. The exemption is maintained for the remaining period when the tenant-owner exercises the option, where applicable until the date on which the home is sold, or when the home is the subject of a new rent-to-own contract that complies with the same conditions as the previous contract, or when it is re-let as the subject of an agreement provided for in the article L. 353-2 of the French Construction and Housing Code.
IV. - Upon deliberation by the communes and public establishments for inter-communal cooperation with their own tax status, taken under the conditions provided for in article 1639 A bis, rehabilitated old housing used as a main residence and covered by a rent-to-own contract in application of law no. 84-595 of 12 July 1984 defining rent-to-own property is exempt from property tax on built properties for a period of fifteen years from the year following completion of the rehabilitation work when it is covered, under conditions set by decree, by an agreement and an approval decision taken by the State representative in the department. The exemption is maintained for the remaining period when the tenant-acquirer exercises the option, where applicable until the date on which the home is sold, or when the home is the subject of a new rent-to-own contract that complies with the same conditions as the previous contract, or when it is re-rented as the subject of an agreement provided for in article L. 353-2 of the Construction and Housing Code.
