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Development tax (TA)

Verified 01 janvier 2022 - Directorate of Legal and Administrative Information (Prime Minister), Ministry of city planning

The development fee shall apply to all transactions subject to city planning authorisation: construction, reconstruction and extension of buildings, development and installation of all kinds. It shall also apply to destination changes agricultural premises. It is due by the beneficiary of the authorisation to build or build or by the person responsible for an illegal construction.

General case

The development tax is a single tax composed of 2 parts:

  • A communal or intercommunal part
  • A departmental share

Each share is established by the deliberation of the local authority: city council and departmental council.

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A municipality with a local city planning plan (PLU) or land use plan (POS)

The communal or intercommunal part of the development tax shall be instituted ex officio by deliberation.

It may, however, be decided by deliberation of the local authority to waive the perception of the communal or intercommunal part.

Urban or metropolis

The intercommunal part of the development fee shall be instituted ex officio by deliberation.

It may, however, be decided by deliberation to waive the collection of the intercommunal share.

  Please note : in the communes of the Metropole de Lyon, the departmental share of the development tax is established by deliberation of the Metropole Council.

Other

The communal or intercommunal part shall be established by the decision of the municipal council or the legislative body of the grouping of communes.

The deliberation that imposes or waives or removes the tax shall be valid for a minimum period of 3 years. The deliberation must be taken before November 30 to apply on November 1to January of the following year.

The amount of tax is calculated on the basis of the lump sum value according to the following formula:

(taxable area x lump sum value x municipal or intermunicipal rate) + (taxable area x lump sum value x departmental rate)

The amount of the development fee depends on the nature of the project.

Constructions

Taxable area constructs match the sum of closed and covered surfaces calculated from interior of the façades. Surfaces below a ceiling height of 1.80 m and hoppers, stairs and lifts are deducted.

The taxable surface is made up of all parts of a building when they exceed 1.80 m in height under ceiling. It is also composed of its annexes, such as garden shelters.

An unenclosed building (a pergola, an arbour for example) or an uncovered facility, such as a terrace, are not included in the taxable surface. However, a closed and covered veranda is taxable.

  FYI : the conversion of an existing building or garage into a living room is not subject to development tax.

A lump sum value is assigned per m² of taxable area. It shall be reviewed annually on the basis ofICC.

  • 2017: €705
  • 2018: €726
  • 2019: €753
  • 2020: €759
  • 2021: €767
  • 2022: €820

Facilities

Facilities or installations are subject to development tax on the basis of a flat-rate fee per location.

Flat values for the categories of installations and installations subject to the TA

Type of fitting or installation

Flat Value

Tent pitch, caravan and mobile leisure residence on a campground or natural camping area

€3,000 by location

Light-weight leisure dwelling

€10 000 by location

Swimming pool

€200 per m

Wind turbine over 12 m

€3,000 by wind

Photovoltaic panel on the ground

€10 per m² of panel area

Outdoor parking area

From €2,000 to €5 000 by location (as determined by the territorial community)

Heat-generating solar thermal panels and parking areas for 2-wheelers are not taxed.

Tax rate

The rate of the communal or intercommunal and departmental shares shall be fixed by deliberation before 30 November of each year for entry into force on 1to January of the following year.

The deliberation is valid for a period of 1 year.

It shall be automatically renewed for the following year if a new debate has not been adopted before 30 November.

The communal part or intercommunal is between 1% and 5%.

It can be worn up to 20% by reasoned deliberation.

This is the case where new construction makes it necessary to carry out substantial road or network works or to create general public facilities.

In the absence of a deliberation setting the rate of the communal or intercommunal share of the development tax, the tax shall be imposed ex officio in the communes with PLU or POS. Rate set default 1%.

  Please note : the rate may vary according to the areas of the municipality. If construction or development is carried out in locations with different rates, the lowest rate applies.

The departmental share is uniform throughout the department.

Its establishment is the subject of a deliberation by the departmental council (or the assembly of Corsica).

The rate of the departmental share shall be 2.5%.

Slaughterings and exemptions

Certain types of construction and development may be subject to the following reductions or exemptions:

  • Dropping 50%on the lump sum
  • Ex officio exemption of the communal or intercommunal part and TA departmental
  • Ex officio exemption of the communal or intercommunal part
  • Optional Exemption: the territorial may exempt, in whole or in part, certain constructions of the municipal, departmental or regional part on a percentage of their surface. The deliberation must be taken no later than 30 November for application on 1to next January.

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Construction up to 5 m²

Any construction up to 5 m² is automatically exempted from the communal or intercommunal part and departmental development tax.

Housing and annexe

The First 100 m² of a room and its annexes for main residential use have a 50%on the lump sum.

One assisted living or accommodation with a reduced rate ofVAT shall be subject to the same allowance.

One housing or social housing financed by a government assisted rental loan (PLA-I) and very social rental housing (LLTS) are automatically exempted from the municipal or intermunicipal share and the departmental share of the TA.

The following constructions may be exempted on an optional basis:

  • Area of a principal-use premises financed by a zero-rate loan which does not benefit from the 50% for the first 100 m² (within 50%)
  • Social housing with reduced VAT
  • Garden shelter, dovecote and dovecote subject to prior declaration (even removable garden shelter is taxable)

Reconstruction

The reconstruction of a building destroyed or demolished by expert or administrative decision for less than 10 years following a natural disaster is exempt from the municipal or intercommunal part of the TA.

The exemption applies, upon request of the taxpayer, to the total amount of tax that did not last expire on the date of the claim.

This exemption also applies to the post-disaster reconstruction of a similar building on another piece of land.

The original land must be recognised as extremely dangerous and classified as unconstructible.

  Warning : you must show that the compensation for damages does not include the amount of the development tax normally payable on reconstructions.

Classified building

A building classified as a historical monument or listed in the supplementary inventory may be subject to an optional exemption.

Industrial, craft or commercial premises

One industrial or craft premises and its annexes have a 50%on the lump sum and may be subject to an optional exemption.

One warehouse or hangar closed to the public that is the subject of a commercial operation shall receive a 50%on the lump sum.

One retail with a sales area of less than 400 m² or multi-professional healthcare home may be subject to an optional exemption.

Parking

One commercially operated indoor parking shall receive a 50%on the lump sum.

An annexe surface for parking of social housing with PLS, PLS, PSLA loans may be exempted on an optional basis.

A surface of indoor parking of buildings other than individual houses may also be subject to an optional exemption.

Farm

The following constructions are automatically exempted from the communal or intercommunal part and the departmental part of the TA:

  • Production greenhouse
  • Production and storage space for agricultural products
  • Premises for crops, animals and agricultural equipment
  • Processing and packaging premises for farm products

Equestrian Centre

The area of a premises used for equestrian activities (rides and storage facilities) is automatically exempted from the communal or intercommunal part and the departmental part of the TA.

Development required by a Risk Prevention Plan (PPR)

A development prescribed by a PPR is automatically exempted from the communal or intercommunal part and the departmental part of the TA.

Public Service

A building used for a public service or for public purposes is automatically exempted from the municipal or intermunicipal share and the departmental share of the VAT.

Special area and perimeter

A construction or development carried out in a particular area or perimeter is automatically exempted from the municipal or intercommunal part of the TA. These areas or perimeters are:

  • Perimeter of National Interest Transaction (NAO)
  • Urban Partnership Project Perimeter (PUP)
  • Concerted Design Area (CAZ)

When filing a building permit, building permit or prior declaration of work, the applicant must complete a declaration of the elements necessary for the calculation of taxes. This is on the permit or work report. An information sheet is also provided.

The amount of the VAT is established by the departmental directorate of the territories (DDT). It shall be sent to the beneficiary of the city planning authorisation by a single letter at the latest 6 months after the authorisation has been issued.

Depending on the case, the tax is payable at the rate applicable on the following date:

  • Issuance of building or development permit
  • Issuance of amending permit
  • Birth of a tacit permit to build or develop
  • Decision not to oppose a prior declaration
  • Notice of completion of construction without authorisation or infringement

When the TA amount is less than €1,500, the collection document shall be issued within 12 months of the date of issue of the authorisation. It is paid at once.

When the amount of the TA is greater than €1,500, it is paid in 2 equal fractions. Collections are issued 12 and 24 months after the authorisation has been issued.

The payment deadline is 15 of 2e month following the date of issue.

In the event of non-payment, the administration shall have a period of 5 years from the date of issue of the collection document to bring an action for the recovery of the claim.

The administration can claim the tax until December 31 of the 4e year following the year of issue of the authorisation or decision. This period extends until 31 December of the 6e year after completion in case of construction or development without authorisation or infringement.

In Ile-de-France

The development tax is a single tax composed of 3 parts:

  • A communal or intercommunal part
  • A departmental share
  • Regional

Each share is established by the deliberation of the local authority: City of Paris and the Ile-de-France Regional Council.

The deliberation to institute or waive the TA is valid for 3 years. It must be taken before 30 November for application on 1to January of the following year.

The amount of the tax is calculated as follows:

(taxable area x lump sum value x municipal or intermunicipal rate) + (taxable area x lump sum value x departmental rate) + (taxable area x lump sum value x regional rate)

The amount of the development fee depends on the nature of the project.

Constructions

Taxable area constructs match the sum of closed and covered surfaces calculated from interior of the façades. Surfaces below a ceiling height of 1.80 m and hoppers, stairs and lifts are deducted.

The taxable surface consists of all parts of a building, as long as they exceed 1,80m in height under ceiling, and annexes, such as garden shelters.

An unenclosed building (a pergola, an arbour for example) or an uncovered facility, such as a terrace, are not included in the taxable surface. However, a closed and covered veranda is taxable.

  FYI : the conversion of an existing building or garage into a living room is not subject to development tax.

A lump sum value is assigned per m² of taxable area. It shall be reviewed annually on the basis ofICC.

  • 2017: €799
  • 2018: €823
  • 2019: €854
  • 2020: €860
  • 2021: €870
  • 2022: €929

Facilities

Facilities or installations are subject to development tax on the basis of a flat-rate fee per location.

Flat values for the categories of installations and installations subject to the TA

Type of fitting or installation

Flat Value

Tent pitch, caravan and mobile leisure residence on a campground or natural camping area

€3,000 by location

Light-weight leisure dwelling

€10 000 by location

Swimming pool

€200 per m

Wind turbine over 12 m

€3,000 by wind

Photovoltaic panel on the ground

€10 per m² of panel area

Outdoor parking area

of €2,000 to €5 000 by location (as determined by the territorial community)

  Please note : solar thermal panels that produce heat are not taxed. Parking areas for 2 wheels are also not taxed.

Tax rate

The rate of the communal or intercommunal, departmental or regional shares in the Île de France shall be fixed by deliberation before 30 November of each year for entry into force on 1to January of the following year.

The deliberation is valid for a period of 1 year.

It shall be automatically renewed for the following year if a new debate has not been adopted before 30 November.

The communal part or intercommunal is between 1% and 5%.

It can be worn up to 20% by reasoned deliberation.

This is the case where new construction makes it necessary to carry out substantial road or network works or to create general public facilities.

  Please note : the rate may vary according to the areas of the municipality. If construction or development is carried out in locations with different rates, the lowest rate applies.

The departmental share is uniform throughout the department. Its establishment is the subject of a deliberation by the City of Paris.

The rate of the departmental share shall be 2.5%.

The regional share rate is the subject of a deliberation by the Conseil régional d’Île-de-France. It can be different from department to department.

The regional is capped at 1%.

Slaughterings and exemptions

Certain types of construction and development may be subject to the following reductions or exemptions:

  • Dropping 50%on the lump sum
  • Ex officio exemption of the communal or intercommunal part and TA departmental
  • Optional Exemption: the territorial may exempt, in whole or in part, certain constructions of the municipal, departmental or regional part on a percentage of their surface. The deliberation must be taken no later than 30 November for application on 1to next January.

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Construction up to 5 m²

Any construction up to 5 m² is automatically exempted from the communal or intercommunal part and departmental development tax.

Housing and annexe

The First 100 m² of a room and its annexes for main residential use have a 50%on the lump sum.

One assisted living or accommodation with a reduced rate ofVAT shall also be subject to the same allowance.

One housing or social housing financed by a government assisted rental loan (PLA-I) and very social rental housing (LLTS) are automatically exempted from the municipal or intermunicipal share and the departmental share of the TA.

The following constructions may be exempted on an optional basis:

  • Area of a principal-use premises financed by a zero-rate loan which does not benefit from the 50% for the first 100 m² (within 50%)
  • Social housing with reduced VAT
  • Garden shelter, dovecote and dovecote subject to prior declaration (even removable garden shelter is taxable)

Reconstruction

The same reconstruction of a building destroyed or demolished by expert or administrative decision for less than 10 years following a natural disaster is exempt from the municipal or inter-municipal share and TA department.

The exemption applies, upon request of the taxpayer, to the total amount of tax that did not last expire on the date of the claim.

This exemption also applies to the post-disaster reconstruction of a similar building on another piece of land.

The original land must be recognised as extremely dangerous and classified as unconstructible.

  Warning : you must show that the compensation for damages does not include the amount of the development tax normally payable on reconstructions.

Classified building

A building classified as a historical monument or listed in the supplementary inventory may be subject to an optional exemption.

Industrial, craft or commercial premises

One industrial or craft premises and its annexes have a 50%on the lump sum and may be subject to an optional exemption.

One warehouse or hangar closed to the public that is the subject of a commercial operation shall receive a 50%on the lump sum.

One retail with a sales area of less than 400 m² and multi-professional healthcare home may be subject to an optional exemption.

Parking

One commercially operated indoor parking shall receive a 50%on the lump sum.

An annexe surface for parking of social housing with PLS, PLS, PSLA loans may be exempted on an optional basis.

A surface of indoor parking of buildings other than individual houses may also be subject to an optional exemption.

Farm

The following constructions are automatically exempted from the communal or intercommunal part and the departmental part of the TA:

  • Production greenhouse
  • Production and storage space for agricultural products
  • Premises for crops, animals and agricultural equipment
  • Processing and packaging premises for farm products

Equestrian Centre

The area of a premises used for equestrian activities (rides and storage facilities) is automatically exempted from the communal or intercommunal part and the departmental part of the TA.

Development required by a Risk Prevention Plan (PPR)

A development prescribed by a PPR is automatically exempted from the communal or intercommunal part and the departmental part of the TA.

Public Service

A building used for a public service or for public purposes is automatically exempted from the municipal or intermunicipal share and the departmental share of the VAT.

Special area and perimeter

A construction or development carried out in a particular area or perimeter is automatically exempted from the municipal or intercommunal share and TA department. These areas or perimeters are:

  • Perimeter of National Interest Transaction (NAO)
  • Urban Partnership Project Perimeter (PUP)
  • Concerted Design Area (CAZ)

When filing a building permit, building permit or prior declaration of work, the applicant must complete a declaration of the elements necessary for the calculation of taxes.

This is on the permit or work report.

An information sheet is also provided.

The amount of the TA is established by the Departmental Directorate of the Territories (DRIEA). It shall be sent to the beneficiary of the city planning authorisation by a single letter at the latest 6 months after the authorisation has been issued.

Depending on the case, the tax is payable at the rate applicable on the following date:

  • Issuance of building or development permit
  • Issuance of amending permit
  • Birth of a tacit permit to build or develop
  • Decision not to oppose a prior declaration
  • Notice of completion of construction without authorisation or infringement

When the TA amount is less than €1,500, the collection document shall be issued within 12 months of the date of issue of the authorisation. It is paid at once.

When the amount of the TA is greater than €1,500, it is paid in 2 equal fractions. Collections are issued 12 and 24 months after the authorisation has been issued.

The payment deadline is 15 of 2e month following the date of issue.

In the event of non-payment, the administration shall have a period of 5 years from the date of issue of the collection document to bring an action for the recovery of the claim.

The administration can claim the tax until December 31 of the 4e year following the year of issue of the authorisation or decision. This period extends until 31 December of the 6e year after completion in case of construction or development without authorisation or infringement.