Forest and Real Estate Tax
French forests are included in the real estate tax base, as was already the case for wealth tax, and can benefit from an exemption of up to ¾ of their value, under certain conditions.
French forest and real estate tax: what are the conditions for exemptions?
- At the request of the taxpayer, the Departmental Department of Territories (DDT) issues a certificate attesting that timber and forests are likely to present one of the guarantees of sustainable management provided by the Forest Code. This certificate must be produced at the time of the deposit of the IFI declaration and for which the benefit of these provisions is requested for the first time. This certificate must be established for less than 6 months. This certificate must then be renewed every 10 years, and accompanied by an assessment of the implementation of the sustainable management document.
- A sustainable management document for 30 years should be applied to woods and forests benefiting from the partial exemption. This undertaking is drawn up on free paper and also mentions the goods which are the subject of the partial exemption. It is attached to the IFI declaration on the occasion of the subscription of the declaration which mentions for the first time goods likely to benefit from the reduced taxation.
What consequences in case of non-compliance with the thirty-year commitment?
- In the event of non-compliance with the thirty-year commitment, the taxpayer will have to pay the real estate tax supplement due in respect of each of the years for which the exemption was granted and an additional right equal to 30%, 20% and 10% of the reduction granted depending on whether the breach is established before the expiry of the tenth, twentieth or thirtieth year pursuant to Article 1840 G of the General Tax French Code. To this will be added a delay interest.
- However, if the breach of commitment relates only to a part of the property having benefited from the partial exemption, then the reminder of the supplement and the supplement of duties shall be made proportionally to the area in question in relation to the total area of the property. having benefited from the exemption, in application of III of article 1840 G of the CGI.
Frequently asked questions
- I own an apartment that is not my principal residence. I put it on sale in order to acquire my principal residence. Can I benefit from a tax exemption on real estate capital gains knowing that I am not the owner of my main home?
- I buy a property for which the mandate of sale provides that the payment of real estate agency commission is the responsibility of the seller. Why is this commission included in the base for calculating notaire fees?
- I am a tenant of my principal residence and owner of my second home. I want to sell it so I can buy a new home that I will assign to my main home. This residence is worth 300.000 €, but I still have 100.000 € of credit to refund. [...]
- I am a partner of an SCI that was incorporated in 1950 for a period of 50 years. No extension has been made at the end of the term, but SCI is still active today. Is it possible to regularize a posteriori?