If you rent out a furnished property in France, you are subject to certain tax obligations, including the Cotisation Foncière des Entreprises (CFE). This local business tax applies to all furnished rental landlords, whether operating under the Micro-BIC, Réel Simplifié, or SCI à l’IS regimes.
Understanding how CFE is calculated, when it applies, and how to declare and pay it is essential to ensuring compliance and avoiding unnecessary penalties. In this guide, we will break down everything you need to know about CFE for LMNP and LMP landlords in France, from registering your rental activity to paying your tax on time.
The Cotisation Foncière des Entreprises (CFE) is a local tax introduced by the 2010 Finance Act. It is part of the Contribution Économique Territoriale (CET) alongside the CVAE (Contribution on Business Value Added).
This tax is mandatory for all furnished rental property owners starting from their second year of activity (under certain conditions). After declaring your furnished rental activity via the P0i form, you will receive a 751 SD form by mail. This document collects information necessary for calculating your CFE, which is based on the annual rental income generated by your property.
To comply with this tax obligation, you must create a professional account on the French tax website impots.gouv.fr. In November, you will typically receive an additional form (1447-C-SD), which allows the authorities to determine the precise amount of CFE you owe.
Since CFE is linked to your SIREN number, it is essential to register your activity and obtain your SIRET number before setting up your professional tax account on impots.gouv.fr.
To create your professional tax account, follow these steps:
The CFE payment deadline is December 15 each year. However, there are several payment options available:
Ensuring your CFE payment is made on time is crucial to avoid any penalties or late fees.
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