What is cadastral rental value in France?
Cadastral rental value: principle
Cadastral rental value represents An annual theoretical rent What could the owner of the property be perceived if he hired him. In other words, it therefore does not correspond directly to the amount that a property could be sold on the market, but rather to its ability to generate rental income.
Cadastral rental value: the base of the property tax
In order to finance the daily services it performs for its inhabitants as well as all of its development projects, the local authority is in the need to take local taxes (such as property tax). For fix the amount of these local taxesthe administration assesses each home according to their rental value.
A different rental value for each city
The rental value is Calculated by the tax administration For all housing, whether unoccupied, rented or occupied by their owners, from the elements mentioned by the taxpayer when he fills the H1 – CERFA 6650 prints for individual houses and H2 – CERFA 6652 prints for collective buildings.
How to obtain or estimate the cadastral rental value?
The cadastral rental value is calculated by the tax administration taking into account different elements.
Housing area
The administration retains The ground surface Real estate, whatever the height of the ceiling. For the calculation of this area are retained all the rooms of the accommodation, namely the living rooms (bedroom, kitchen, living room, etc.), annexes (corridors, entrance, storage, etc.), outbuildings (garages, terrace, attic, etc.).
However, adjustments can be made for some Non -habitable partssuch as unfingened basements or non-converted attic.
Comfort elements
All comfort elements are converted into a square meter and added to the ground surfacefor example 4 m2 for housing with running water, 2 m2 for gas, 3 m2 per WC, 5 m2 per bathtub, 3 m2 per sink, 2 m2 for electricity. A weighting coefficient is then applied that makes the difference between houses/apartments, recent/old accommodation, etc.
Housing category
The accommodation is classified as Eight categories, unhealthy housing on the high standing. Each category has a Price per specific square meter Applied to the area of the property to determine the rental value, on the national and local level. They are defined by parameters such as the surface, the age of the building, the type of equipment, the state of maintenance and the geographic location.
Obtain cadastral rental value
To obtain the average rental value of a property, it is possible to consult the official website of the cadastre or by requesting information from the tax administration. If you believe that the cadastral rental value is incorrect, you can request a review.
What are the upcoming changes to the cadastral rental value?
Finance law for 2020
Initially provided for 2026, the revision of the rental values provided for by the finance law for 2020 has been postponed to 2028 Under the finance law for 2023. It aims to update the basics of taxation of property taxes and the housing tax (for secondary residences) based on the rents observed in 2023.
Reform objectives
The main objective is rebalance local taxation Taking into account changes in the real estate market since the last general revision made in 1970. This update will better reflect current disparities between territories, particularly in terms of comfort, location and rental demand.
Revision terms
The revision will be based on rents noted in 2023distributed according to specific criteria:
- The accommodation will be classified into different categories, ranging from housing from low standing to that of high standing.
- The territory will be divided into homogeneous geographic areas, taking into account factors such as local attractiveness, access to services and transport and socio-economic characteristics.
Expected impact
The implementation of this reform should lead to a Revaluation of tax baseswith variable consequences depending on the territories and the types of goods. Certain areas may experience an increase in their cadastral rental value, while others could benefit from a reduction.
How is the revision of the cadastral rental value of a housing?
Periodic evolution of cadastral values
Cadastral rental values are regularly revised by the tax administration to take into account theEvolution of real estate prices and rents practiced. This revision aims to maintain consistency between cadastral rental value and the reality of the real estate market. Revisions can be:
- carried out throughout the territory at regular intervals (every six to ten years);
- Linked to local revisions due to a change in the real estate environment (eg development of new equipment, urban projects).
Criteria used for revision
Certain modifications are likely to Modify the rental value of accommodation. As such, you are required to inform the tax administration of these changes. These include:
- the implementation of new edifications;
- transformations brought to the composition of a pre -existing room and having the effect of modifying its volume or surface, such as construction additions, total or partial demolitions, the meeting or the division of premises;
- From the transition from one group of premises to another, for example, a commercial premises which becomes a residential room;
- new equipment facilities and significant improvements, but without impact on the surface;
- Large rehabilitation work, the development of attic in living rooms.
Revision notification
Once the revision has been made, the administration Notify the owners of the adjustment Cadastral rental value. This notification can take the form of an official decision or a tax notice. As a rule, the owners are informed when sending their property tax notice. This results in an adjustment of the local tax.
How to know the cadastral rental value of your property?
Each year, the tax administration revises the cadastral rental value of housing and the municipalities revise the applicable tax rate. This is why the amount of the property tax and the housing tax varies from one year to another.
Rental value assessment sheet
To find out the cadastral rental value of its accommodation, it is necessary to refer to the evaluation sheet of its property with the land tax center. It’s a document that Determines the cadastral rental value goods, in particular for built properties. It describes in detail the criteria used to calculate it and serves to justify the estimated estimate for taxation.
Challenge the cadastral rental value
You have the possibility of contesting the rental value of your accommodation by sending a complaint to the tax administration By mail, on the website taxes.gouv.fr or orally by going to the tax center. The administration has a period of six months to respond. Otherwise, the complaint is considered to be rejected.
If the dispute is rejected, the owner can Enter the competent administrative court. This referral must intervene within two months from the notification of the rejection. It is important to note that the procedure before the court is a written procedure; It is strongly recommended to be assisted or represent by a lawyer.
Why does the cadastral rental value increase?
Real estate price inflation
Increased real estate price In some regions may lead to an increase in cadastral rental values. For example, in areas where housing demand is high, rental value may increase due to the assessment of real estate and the increase in rents observed on the market.
Real estate improvements or renovations
When renovation or improvement work is carried out on a property, the cadastral rental value may increase due to theImprovement of services and the living area. This work can modify the comfort of the property and make it more attractive on the market, which results in a reassessment of its rental value.
Legislative or regulatory changes
The evolution of tax laws and evaluation rules Real estate can also influence the increase in cadastral rental value. For example, reforms or adjustments in the way in which services and equipment (such as garages or elevators) are taken into account may result in re -evaluation.
Pressure on local finances
Local authorities may increase tax rates related to property tax or other local taxes in response to financing needs. If these communities increase their tax rate to make up for budgetary deficits or finance new projects, cadastral rental value, applied to this rate, may seem to increase.
Revision of comfort coefficients
The tax administration can also adjust Comfort coefficients which are applied to the area of real estate, depending on improvements in comfort standards (for example, the addition of central heating or elevator). This can lead to an increase in rental value, especially in neighborhoods where comfort standards are evolving.
How is the cadastral rental value used to calculate the property tax?
Calculation base of the property tax
The cadastral rental value is the theoretical income that the property could generate if it was rented. This value is therefore used as a basis for calculating the property tax. For built properties (houses, apartments), it is used to assess the contributory capacity Good.
Application of the tax rate
Once the rental value is determined, it is multiplied by a tax rate set each year by local communities (municipalities, departments, etc.). These rates vary depending on the areas, and each community can decide on the applicable rate for its region.
Calculation of property tax
The amount of the property tax is therefore calculated by multiplying the cadastral rental value of the property by the applicable tax rate. The formula is as follows: Property tax = Cadastral rental value × Tax rate. For example, if the cadastral value is 10,000 euros and the 20 %rate, the property tax will be: 10,000 × 20 = 2,000 euros.
Developments and discounts
Various abatements or discounts may apply to certain categories of goods. For example, Developments for social housingor for certain properties which benefit from specific tax regimes (agricultural properties, historic monuments, etc.), can be applied before calculating the final property tax.
Property tax on non -built properties
For non -built land, the cadastral rental value is also used to calculate the property tax. However, the calculation may be different, because the Valuation criteria For non -built land may include specific elements, such as the surface, the nature of the land (agricultural, building, forestry, etc.), and its use.
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