Since October 2021, Bercy has launched the new “Innovative Land” program. Because to increase controls, the administration is now helped by… technology. By having AI analyze data from aerial images of maps from the National Geographic Institute and public satellite images, then comparing them to the declarations made, the tax services can identify anomalies and send a tax agent to check suspicious land.
A conclusive process, if we are to believe its 2023 activity report published on June 11: the DGFiP reveals that its services were able to uncover 140,000 undeclared swimming pools last year, and thus recover an additional 40 million euros in property tax for local authorities.
On the strength of these results, Thomas Cazenave, Minister for Public Accounts, announced on March 20 that he wanted to step up the hunt for undeclared buildings. “We have started the work, and we will be able to deploy it during the coming year,” he warned. The administration will now target garden sheds, garages and verandas.
What the law says ?
In France, the law imposes certain declaration obligations for the construction or modification of one’s property (verandas, garden sheds, garages, etc.).
– If the floor area is less than 5 m², no prior declaration or building permit is required, unless your municipality imposes specific rules.
– If the floor area is between 5 m² and 20 m² (or 40 m² in urban areas covered by a local town planning plan (PLU) or a town planning document in lieu thereof), the mandatory prior declaration of works. CERFA form n°13703*07 must be completed and submitted to the town hall.
– If the floor area is greater than 20 m² (or 40 m² in urban areas covered by a PLU), building permit is mandatory. CERFA form n°13406*07 must be completed and submitted to the town hall.
Please note that in addition to these prior declarations and building permit applications, you must declare to the tax authorities the work carried out on your real estate during the past year, in addition to the traditional income declaration.
How much are the taxes for a conservatory or garden shed?
The construction of a veranda or garden shed will result in two separate payments: on the one hand, at the time of prior declaration, you will be required to pay a development tax. On the other hand, since the presence of a veranda or garden shed increases the cadastral rental value of a property, expect to see the amount of your property tax increase.
The development tax applies to construction, reconstruction and extension operations of buildings and installations that require planning permission (i.e. garden sheds and verandas larger than 5 m²). It is calculated based on the taxable surface area of the construction (sometimes different from the total surface area) and the fixed value per square metre, multiplied by rates set by local authorities.
The taxable area is the sum of the floor areas (closed and covered) whose ceiling height is greater than 1.80 meters.
For 2024, the flat rate value is 886 euros per square meter in Île-de-France and 820 euros per square meter in other regions.
The development tax rate includes a municipal or inter-municipal share and a departmental share. In general, the municipal rate varies between 1% and 5%, while the departmental rate is generally set at 1.5%. There may also be a regional share for the Île-de-France set at 1%. To find out the rate that applies to you, contact your town hall.
Calculation examples
If you are building a 20 m² veranda in the South West, and the rates applicable in your municipality are 3% for the municipal share and 1.5% for the departmental share, the calculation is as follows:
Certain constructions may benefit from partial or total exemptions or reductions. This is particularly the case for garden sheds of less than 5 m², temporary constructions (less than 3 months) or reconstructions after disasters.
What are the risks of not declaring your garden shed or veranda?
In the event of an inspection, the consequences of failing to declare a garden shed or veranda may be administrative, financial and legal.
At the administrative level, the authorities may ask you to regularize your situation by filing a prior declaration of works or a building permit, depending on the case. You will then have to provide all the necessary documents to obtain the building permit. If the works are already underway, the town hall can order their immediate cessation until the situation is regularized.
At the judicial level, the town hall can initiate legal proceedings for violations of the town planning code. You could be summoned before the criminal court for having carried out work without authorization. In the event of a conviction, the court may order the demolition of the undeclared work and the restoration of the premises. This measure is often applied when the construction harms the environment or respects town planning rules.
On a financial level, according to article L480-4 of the Town Planning Code, you risk a fine which can range from 1,200 euros to 6,000 euros per square meter of undeclared constructed area. The amount of the fine is set by the criminal court depending on the seriousness of the offense and the circumstances. You will also be liable for the development tax, calculated on the basis of the undeclared surface area. In addition to this fee, late payment penalties may apply.
Consequences may also arise when reselling your property: the notary will systematically check the conformity of the constructions. An undeclared veranda or garden shed could delay or complicate the sale, or even reduce the value of the property. The purchaser of the property may also turn against you for hidden defects if the non-declaration causes difficulties after the purchase, which may give rise to claims for damages, even well after the property is no longer in your possession.
