Two years ago, the increase was 8%. This year, it will be less, but this still risks impacting the budgets of many French people.
Most property owners must pay taxes, such as property tax, which often represents a significant financial burden. This obligation can even become a source of annoyance for some, especially when the amounts increase from one year to the next. Unfortunately, some owners don’t just have property taxes to pay. They must also face other compulsory levies, such as the development tax.
This tax is a tax that homeowners must pay when they build, rebuild or expand their home. It also applies to projects such as the installation of a swimming pool, a garden shed or a garage. Its amount is calculated based on the surface area created, the type of construction and the rates set by local authorities. It is paid once or twice during the year, depending on its amount. This is also revalued each year on January 1, taking into account the latest construction cost index (ICC).
In 2023, the development tax has increased by 8%, last year it was 3.4% and this year it is increasing once again to 1.7%. The owners concerned are those who intend to carry out major development work requiring a building permit, a development permit or a prior declaration of work. Moreover, “the development tax is due for any creation of enclosed and covered floor space whose surface area is greater than 5 m² and with a ceiling height greater than or equal to 1.80 meters, including attics and cellars”details the website of the Ministry of the Economy. Depending on the work carried out, certain owners can therefore escape this tax or at least benefit from a reduction. For example, if the construction is a small garden shed with an area of 5 m² or less, and it is not subject to prior authorization, then the owner is not subject to the tax.
Likewise for “identical reconstructions of a building destroyed less than 10 years ago” following a disaster, “constructions and developments prescribed by a risk prevention plan under certain conditions”specify the authorities. Other specific constructions can also make it possible to obtain a 50% reduction. In all cases, it is better to find out before the project so as not to have unpleasant surprises…
