Planning Taxes 2024
17th January 2024
How much might you pay in planning taxes this year?
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Planning Taxes 2024
17th January 2024
How much might you pay in planning taxes this year?
In France, all new buildings/extensions of more than 5m2 are subject to a development tax. The amount you will pay depends on where you live and the size of the new construction.
The planning tax, called the Taxe d’aménagement (TA), is reportedly to rise by 3.4%, this year, after an increase of 8% in 2023 and 7% in 2022.
That will mean that the per m2 rate will therefore increase as follows:
- €915 outside Île-de-France (compared to €885 in 2023)
- €1037 in Île-de-France (against €1003 in 2023)
The tax has been in force since 1 March 2012 for any construction, extension or development operation on its land that requires planning permission (building permit, development permit, prior authorisation).
All buildings that are delimited by walls, covered, and that measure at least 5m2 and 1.80 m in ceiling height. Pergolas and terraces, being without walls, are not counted.
On the other hand, swimming pools, although excluded from the taxable area, are nevertheless subject to the development tax on a flat-rate basis.
To find out how much you will pay, simply multiply the taxable area of the construction created by the annual value per m2, then multiply the result by the rate voted by the local authority (municipality, department, region) concerned by the tax. Their rates will be on their websites.
For example, if your municipality (in the provinces) applies a rate of 3% and your department 2%, here is what you will pay for a 10m2 construction:
- 10 x 915 x 3% = €274.50 (municipal share)
- 10 x 915 x 2% = €183 (departmental share)
- €274.50 + €183 = €457.50 tax payable
If you live in Île-de-France, with, say, a communal rate of 4.5%, a departmental rate of 2% and a regional rate of 1% (only in Île-de-France). For a 10m2 building you will pay:
- 10 x 1037 x 4.5% = €466.65 (municipal share)
- 10 x 1037 x 2% = €207.40 (departmental share)
- 10 x 1037 x 1% = €103.70 (regional share)
- Total: €466.65 + €207.40 + €103.70 = €777.75 tax payable
Tom Easdown, a British architect based in France comments that: "The tax can sometimes be seen as a bit of a stealth tax as it is difficult to determine what the figure will be ahead of the approval. It is however balanced against the fact that there are no taxes for the submission of the application unlike countries like the UK or Germany that levy a fee."
There are sometimes other taxes to pay, which you can read about in our Guide to Planning in France.