French citizens abroad will not be exempted from the housing tax

French citizens abroad will not be affected by the reform of the taxe d'habitation wanted by Emmanuel Macron.

The Ministry of Economy and Finance confirmed this in an answer to a written question from the French Senator Robert del Picchia (Les Républicains), published in the Senate JO on January 4.

The reform, enacted by the 2018 finance law

The reform, enacted by the finance law 2018. Provides for the phasing out of the tax by 2020 for approximately 80% of taxpayers. Beginning this year, eligible households will receive relief on their primary residence of 30 %. Then 65 % in 2019 and 100% in 2020. Eligible households are those below a certain threshold of reference tax income (27,000 euros for a single person without children. 43,000 euros for a couple without children. 49,000 for a couple with one child).

In his question, Senator del Picchia had pointed out that some French citizens abroad retained a "residence in France as a link with their country". Because it is considered a second home. They "are not eligible for this exemption, even if their worldwide income is below the announced thresholds". And to recall that the real estate income of French citizens outside France is already "subject to the generalized social contribution (CSG-CRDS)". Which will experience an increase.

How to avoid the taxe d'habitation

"The housing tax is established in the name of the persons who have, in any capacity whatsoever. The disposal or the enjoyment of the furnished premises assigned to the dwellingThe ministry replied. Persons who do not have their tax residence in France but have one or more dwellings there are therefore liable for the tax". However, it specifies that French taxpayers abroad can benefit from "basic relief"if their family resides in a "permanent in the dwelling located in France".

Hélène Conway-Mouret, PS senator for the French abroad and former minister in charge of the French abroad under François Hollande, regrets this decision which she sees as a "additional sanction". "We constantly meet French people who say that they are going to sell what they have in France because the taxes are too high", explains the one who signed a report in 2015 to facilitate the return of French expatriates. "It cuts the physical link with the country. It's not a mandatory link. Sometimes, it's because of an inheritance. The families are happy to go back there if they return to France. It is an essential element. When you are forced to sell your property, it is twice as difficult to return."