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Owners must pay property tax each year. The latter increases every year and already presents a heavy financial burden for the French. Unfortunately, this is not the only burden on the budget.
Indeed, owners must also pay another tax. Less popular than the property tax, it nonetheless remains obligatory in the context of certain works. It is therefore essential to know its existence to anticipate its impact on finances. But what is this famous and mysterious tax?
A tax that landlords should know about
If you have a real estate purchase project, it is essential to find out about the future expenses that await you. If you are familiar with property tax and housing tax, perhaps you are unaware of the existence of development tax. The latter does not concern all owners, but remains obligatory in certain cases.
The development tax is a local tax which applies when an owner carries out work to modify their property. It concerns new constructions, enlargements or extensionsas well as certain developments (installation of a swimming pool, a garage or a garden shed).
To have
Owners and tenants: pay attention to this new unexpected obligation to be fulfilled in 2025
The amount to pay for owners
The calculation of this tax that owners pay depends on several factors. Know that you must pay it, firstly, depending on the surface area of the work. If the enclosed and covered areas that the owners create are equal to or greater than 5 m² (with a minimum ceiling height of 1.80 m), then the tax applies.
Then, the amount depends on the rate that local authorities vote for. In fact, the communes, the departments and regions can freely set these rates. Since the abolition of the housing tax, local authorities have tended to think big.
-Indeed, increasing rates helps fill holes in the budget. Finally, the lump sum value is used in calculating the amount that owners must pay. The latter changes once a year according to the construction cost index (ICC).
Evolution of the tax in 2025
For years, owners have been paying a little more each year. Property taxes continue to rise. Goldthe development tax follows the same path. After a record increase in 2023 (8%)it imposed a more relative increase in 2024 (3.4%). Good news, an even more modest increase awaits owners this year. Indeed, in 2025, the increase is 1.7%.
These increases can quickly increase the bill for owners undertaking work subject to prior declaration, building permit or development permit.
To have
€1,500 fine for owners who do not sign this mandatory document since January 1st
For owners, there are solutions to reduce the bill or not to pay this tax. Thus, sIf your garden shed is less than 5 m², no authorization is essential. Ultimately, no tax applies.
The same applies if the owners reconstruct identically a building destroyed less than ten years ago following a disaster. Furthermore, certain specific types of construction can benefit from a 50% reduction.
