Property Owners Could Be Exempt from Land Tax for 5 Years – Find Out How!

The National Observatory of Property Taxes reports that property tax has surged by an average of 32.9% between 2013 and 2023, a rise that is four times that of rent increases and twice that of inflation. The highest increases were observed in cities located in Savoie, Haute-Corse, Pyrénées-Orientales, and Essonne over the past decade.

In terms of major cities, Paris leads with the highest increase at 83% over ten years, primarily due to the rise in the municipal rate in 2023 and an increase in rental value assessments. Paris is followed by Strasbourg with a 52% increase, Limoges at 51.8%, Grenoble at 49.5%, and Nantes at 48%. Consequently, property owners are facing higher taxes, but some may qualify for a complete or partial exemption from property tax if their property has undergone energy-saving renovations and is located in a municipality that offers this incentive.

To be eligible, the property must have been completed before January 1, 1989, and undergone energy-saving improvements, or it must have been completed after January 1, 2009, with energy performance levels exceeding those required by law. Additionally, the total expenditure on these improvements must be at least 10,000 euros in the year before the exemption applies or 15,000 euros over the three years prior. Eligible improvements include the installation of thermal insulation materials, heat pumps, dual-flow ventilation systems, or heating and hot water systems that use solar energy. The exemption period is 3 years for properties built before January 1, 1989, and 5 years for those built after January 1, 2009.

To take advantage of this exemption, property owners must submit a declaration on plain paper that includes the completion date of the property, the nature and amount of the expenses, to the local tax office, and do so within 90 days after the completion of the improvements. If approved, the tax exemption will apply in the year following the payment for the improvements. Note that starting in 2025, this exemption will only apply to properties older than 10 years.