Selecting a language will automatically trigger the translation of the page content.

Business Property Assessment (CFE)

Verified 01 janvier 2020 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Finance

Covid-19: exceptional measures to assist undertakings

Businesses and self-employed workers in difficulty during the period of the coronavirus epidemic can apply for the deferral or remission of payment of their maturities of certain taxes ..

It is possible to modulate payment of CVAE deposits ..

Companies in certain sectors may benefit from a CFE reduction..

The business property tax (EFC) is one of the 2 components of the territorial economic contribution (TEC) with the business value-added tax (EVC). Unlike the professional tax, which is based on the main rules, the CFE is based solely on property subject to the property tax. This tax is due in each municipality where the company has premises and land.

General case

The CFE must be paid by companies and individuals who habitually exercise a self-employed activity.. This is regardless of their legal status, the nature of their activity, their taxation system and their nationality.

  Please note : undertakings with a turnover or revenue not exceeding €5,000 are exempt from CFE.

The activity taxable to the CFE must be carried out in France and fulfill all of the following conditions:

  • It must be of a habitual character
  • It must be exercised in a professional capacity
  • It must be self-employed (this means that employees are not covered by the CFE)

Rental and sub-letting of bare buildings for residential use are not covered by the CFE if they are not part of a professional activity.

Other rental or sub-leasing activities are covered by the CFE when they have at least a turnover or gross tax-free revenue €100,000..

The CFE does not also apply to the furnished rental of certain units which are part of the owner's main residence.

Buildings and non-built properties fall within the scope of the CFE, unless certain undertakings are granted permanent or temporary exemption.

CFE exemptions may be permanent or temporary.

Permanent exemption

The following organizations and individuals are permanently exempt from EFC, subject to a number of conditions:

  • Territorial authorities, public institutions and State bodies
  • Large seaports, self-contained ports, and ports managed by territorial governments, public institutions or mixed-economy companies (except pleasure ports)
  • Agricultural operators, certain employers' groups and certain GIE
  • Some agricultural cooperatives and their unions
  • Artisans working for individuals or on their behalf with materials belonging to them, whether or not they have a sign or a shop, when they only use the apprentice(s) competition aged up to 20 years at the beginning of the apprenticeship
  • Drivers of taxis or ambulances, owners or tenants of 1 or 2 cars, of 7 places maximum (not counting the place of the driver), that they drive or manage themselves, provided that the 2 cars are not in service at the same time and that they respect the statutory rates
  • Cooperatives and unions of cooperatives of craftsmen, as well as cooperative societies and unions of cooperative societies of boatmen, cooperative societies of maritime
  • Some fishermen, small-scale fishing companies and marine registrants
  • Cooperative and Participatory Societies (Scop)
  • Independent Home Sellers (VDIs), for their total gross remuneration less than €6,787
  • Private institutions of first and second degree under contract with the State and higher education under agreement or recognized as having a public utility
  • Faculty of Arts, Science and Recreational Arts and primary teachers who teach personally, either at their home or at the home of their students, or in a non-teaching and non-special-purpose room
  • Painters, sculptors, engravers and designers considered artists and selling only the product of their art
  • Photographers authors, for their activity relating to the realization of photographs and the assignment of their works of art or copyright
  • Authors, composers, choreographers, copyrighted translators, and certain categories of entertainers (live performances)
  • Lyrical and dramatic artists
  • Independent record stores (primarily engaged in the retail sale of phonograms)
  • Retail establishments with the independent reference bookshop label or, for those not bearing the label, with a premises freely accessible to the public and a retail activity representing at least 50% turnover
  • Midwives and sick-guards (except in the nursing profession)
  • Doctors and health workers opening a secondary office in a medical desert or in a commune of less than 2000 inhabitants
  • Sportsmen and women for the sole practice of a sport
  • Certain press activities, such as specialist press broadcasters, exempt from full duty
  • HLM organizations and landlords or tenants renting or subletting a part of their personal dwelling on an occasional basis at a reasonable price (or furnished, provided the dwelling is the principal residence of the subtenant)
  • Operators of classified tourist furniture or bed and breakfast (unless otherwise decided by the municipality), provided that these premises are part of their personal dwelling (main or secondary residence outside the rental periods) and do not constitute the principal or secondary dwelling of the tenant
  • Companies for their activity of producing biogas, electricity and heat through methanization
  • Social activities (except mutuals, their unions, and provident institutions)
  • Municipal credit unions

Temporary Exemption

The following individuals and organizations may be eligible for the temporary exemption from EFC when they meet certain conditions:

  • Lawyers who have completed the theoretical and practical training course of at least 18 months, certified by the Certificate of Qualification for the Profession of Lawyer (CAPA), and are self-employed, either individually or in a group
  • New companies
  • Enterprises in regional aid zones
  • Enterprises located in small and medium-sized enterprise investment aid zones
  • Enterprises in rural revitalization areas
  • Sensitive urban areas (SUZs) or city policy priority areas (QPVs)
  • First generation free urban areas
  • Second generation urban free zones
  • Free urban-territory third generation entrepreneurs
  • Doctors, paramedics and veterinarians
  • Innovative young enterprises and young university enterprises (JEIU)
  • Companies located in Corsica
  • Companies in the employment basins to be revitalized (BER)
  • Companies located in Defense Restructuring Zones (DRAs)
  • Companies located in the free activity zones (FZs) in Guadeloupe, French Guiana, Martinique, La Réunion or Mayotte

The following 2 types of undertakings can also benefit from the temporary exemption of CFE:

  • Enterprises created in urban basins to be boosted (BUD) between 1to January 2018 and December 31, 2020 that are exempt from income or corporate taxes
  • Companies created in neighboring municipalities in BUD between 1to January 2019 and December 31, 2020 that are exempt from income or corporate taxes

The application for temporary exemption from the CFE is made using the form cerfa n°10694*21.

Temporary exemption from business property tax (CFE)

Cerfa n° 10694*21 - Ministry of Finance
Other number : 1465-SD

For enterprises benefiting from temporary exemption for certain operations carried out in the context of spatial planning.

Trade unions

Trade unions are no longer exempt from CFE for their activities related to the study and defense of the rights and interests of their members.

The rate of the CFE is fixed by the municipality or theEPCI in whose territory the person liable has taxable property.

The CFE is calculated on the rental value of real estate subject to the property tax that the company used for its professional activity during the year N-2. P

Example :

For the contribution due in 2019, the property used in 2017 is taken into account.

The rental value of business premises is determined by a fee schedule in which the premises for professional or commercial use are classified according to their physical characteristics or use.

For example, large-scale stores, places of sale, places of storage.

So the back of a commercial space, used for the storage of goods, does not have the same value as the main part dedicated to welcoming customers.

The determination of this value generally takes into account the average of the rental prices charged during a given period.

The rental value of industrial buildings and land is determined by a method called accountant based on the cost of capital assets (land, land, buildings, land facilities).

However, from 2020, where the value of technical installations, materials and tools in buildings or on land and intended for the activity does not exceed an amount of €500,000, such buildings and land are not of an industrial character. Their rental value will then be determined as that of professional premises.

Reducing tax base

For the calculation of the CFE, the land bases of industrial establishments are reduced by 30%..

The tax base is also reduced in other cases, including:

  • From 50% for new enterprises, the year following the year of establishment
  • As a proportion of downtime for certain seasonal activities (e.g. restaurants, cafes)
  • From 75% for a craftsman who employs 1 employee, 50% for 2 employees 25% for 3 employees (excluding apprentices), if the remuneration of the work (profit, wages paid and social contributions) represents more than 50% total turnover including VAT
  • In case of establishment in Corsica (reduction of 25% on the share received by communes or groupings of communes with own taxation)

Minimum contribution

Where the rental value is very low, a minimum flat-rate contribution shall be established on the basis of a base fixed by the decision of the municipality or the EPCI. The scale of this flat-rate contribution shall be adjusted annually.

This amount must be within a range that varies depending on the amount of turnover or tax-free revenue that the company earned in year N-2.

Minimum CFE base scale based on turnover or revenue

Revenue or revenue

Minimum base (CFE due under 2020)

Until €10,000

Between €223 and €531

Between €10,001 and €32,600

Between €223 and €1061

Between €32,601 and €100,000

Between €223 and €2229

Between €100,001 and €250,000

Between €223 and €3716

Between €250,001 and €500,000

Between €223 and €5307

From €500,001

Between €223 and €6901

Corporations and individuals who have to pay the CFE are not required to report their tax bases each year to this assessment.

But a 1447-M declaration must be filed before 2e working day after 1to May by undertakings which:

  • Apply for an exemption (land use planning, live or cinematographic undertakings, GAME/JEI, Label LIR or competitiveness cluster, for example)
  • Wish to indicate a change in the consistency or the surface of goods subject to the CFE/IFER:
    • Increase or decrease in the area of the premises
    • Change in the number of employees (tax credit, artisan reduction...)
    • Change in tax element (power or number of facilities)
    • Exceeding the €100,000 (bare rent)
    • Termination or closure of installation or establishment

Change Return for Business Property Assessment (CFE) and Lump Sum Tax on Network Enterprises

Cerfa n° 14031#09 - Ministry of Finance
Other number : 1447-M-SD

An institution that has to pay the CFE no longer receives tax and deposit notices by mail. He must consult the online tax account..

Payment of the CFE is made in 2 slices..

One deposit equal to 50 % of the amount of the EFC assessed in respect of the previous year must be paid before 15 June of the current year.

The taxpayer must not pay a deposit if the amount of the CFE was less than €3,000..

The balance of the CFE must be settled by 15 December of each year, less any advance payment. Therefore, the entire CFE must be paid if a deposit has not been paid.

  FYI : where the CFE payment or levy deadline coincides with a Saturday, a Sunday or a holiday, the deadline shall be extended to 1toworking day next.

Payment must be made in a dematerialized manner. The taxpayer has the option of:

  • Payment via Internet online tax account
  • Monthly fee (membership available until 30 June)
  • Debit on maturity (membership possible until 30 November for payment of balance)

The taxpayer may obtain a reduction in the EFC due if the taxpayer plans to cease operations during the year or if the taxpayer's tax base is likely to be reduced by at least 25% compared to the previous year. To obtain this reduction, he must submit a written, dated and signed declaration to the public accountant in charge of the cashing of the CFE, at least 15 days before the due date of the deposit.

  Warning : a company which has paid an annual contribution in excess of €3,000 and who is not monthly must make a deposit before 15 June.. This deposit is equivalent to 50% the amount received in the previous year.

New business

The CFE must be paid by companies and individuals who habitually exercise a self-employed activity.. This is regardless of their legal status, the nature of their activity, their taxation system and their nationality.

  Please note : undertakings with a turnover or revenue not exceeding €5,000 are exempt from CFE.

The activity taxable to the CFE must be carried out in France and fulfill all three conditions:

  • It must be of a habitual character
  • It must be exercised in a professional capacity
  • It must not give rise to the payment of a salary

Rental and sub-letting of bare buildings for residential use and furnished rentals are covered by the CFE.

However, the rental or sub-rental of bare residential buildings is not subject to the CFE when they generate gross tax-free revenues or a turnover less than €100,000..

The CFE does not also apply to the furnished rental of certain units which are part of the owner's main residence.

Buildings and non-built properties fall within the scope of the CFE, unless certain undertakings are granted permanent or temporary exemption.

CFE exemptions may be permanent or temporary.

Permanent exemption

The following organizations and individuals are permanently exempt from EFC, subject to a number of conditions:

  • Territorial authorities, public institutions and State bodies
  • Large seaports, self-contained ports, and ports managed by territorial governments, public institutions or mixed-economy companies (except pleasure ports)
  • Agricultural operators, certain employers' groups and certain GIE
  • Some agricultural cooperatives and their unions
  • Artisans working for individuals or on their behalf with materials belonging to them, whether or not they have a sign or a shop, when they only use the apprentice(s) competition aged up to 20 years at the beginning of the apprenticeship
  • Drivers of taxis or ambulances, owners or tenants of 1 or 2 cars, of 7 places maximum (not counting the place of the driver), that they drive or manage themselves, provided that the 2 cars are not in service at the same time and that they respect the statutory rates
  • Cooperatives and unions of cooperatives of craftsmen, as well as cooperative societies and unions of cooperative societies of boatmen, cooperative societies of maritime
  • Some fishermen, small-scale fishing companies and marine registrants
  • Cooperative and Participatory Societies (Scop)
  • Independent Home Sellers (VDIs), for their total gross remuneration less than €6,787
  • Private institutions of first and second degree under contract with the State and higher education under agreement or recognized as having a public utility
  • Faculty of Arts, Science and Recreational Arts and primary teachers who teach personally, either at their home or at the home of their students, or in a non-teaching and non-special-purpose room
  • Painters, sculptors, engravers and designers considered artists and selling only the product of their art
  • Photographers authors, for their activity relating to the realization of photographs and the assignment of their works of art or copyright
  • Authors, composers, choreographers, copyrighted translators, and certain categories of entertainers (live performances)
  • Lyrical and dramatic artists
  • Independent record stores (primarily engaged in the retail sale of phonograms)
  • Retail establishments with the independent reference bookshop label or, for those not bearing the label, with a premises freely accessible to the public and a retail activity representing at least 50% turnover
  • Midwives and sick-guards (except in the nursing profession)
  • Doctors and health workers opening a secondary office in a medical desert or in a commune of less than 2000 inhabitants
  • Sportsmen and women for the sole practice of a sport
  • Certain press activities, such as specialist press broadcasters, exempt from full duty
  • HLM organizations and landlords or tenants renting or subletting a part of their personal dwelling on an occasional basis at a reasonable price (or furnished, provided the dwelling is the principal residence of the subtenant)
  • Operators of classified tourist furniture or bed and breakfast (unless otherwise decided by the municipality), provided that these premises are part of their personal dwelling (main or secondary residence outside the rental periods) and do not constitute the principal or secondary dwelling of the tenant
  • Companies for their activity of producing biogas, electricity and heat through methanization
  • Social activities (except mutuals, their unions, and provident institutions)
  • Municipal credit unions

Temporary Exemption

The following individuals and organizations may be eligible for the temporary exemption from EFC when they meet certain conditions:

  • Lawyers who have completed the theoretical and practical training course of at least 18 months, certified by the Certificate of Qualification for the Profession of Lawyer (CAPA), and are self-employed, either individually or in a group
  • New companies
  • Enterprises in regional aid zones
  • Enterprises located in small and medium-sized enterprise investment aid zones
  • Enterprises in rural revitalization areas
  • Sensitive urban areas (SUZs) or city policy priority areas (QPVs)
  • First generation free urban areas
  • Second generation urban free zones
  • Free urban-territory third generation entrepreneurs
  • Doctors, paramedics and veterinarians
  • Innovative young enterprises and young university enterprises (JEIU)
  • Companies located in Corsica
  • Companies in the employment basins to be revitalized (BER)
  • Companies located in Defense Restructuring Zones (DRAs)
  • Companies located in the free activity zones (FZs) in Guadeloupe, French Guiana, Martinique, La Réunion or Mayotte

The following 2 types of undertakings can also benefit from the temporary exemption of CFE:

  • Enterprises created in urban basins to be boosted (BUD) between 1to January 2018 and December 31, 2020 that are exempt from income or corporate taxes
  • Companies created in neighboring municipalities in BUD between 1to January 2019 and December 31, 2020 that are exempt from income or corporate taxes

The application for temporary exemption from the CFE is made using the form cerfa n°10694*21.

Temporary exemption from business property tax (CFE)

Cerfa n° 10694*21 - Ministry of Finance
Other number : 1465-SD

For enterprises benefiting from temporary exemption for certain operations carried out in the context of spatial planning.

Trade unions

Trade unions are no longer exempt from CFE for their activities related to the study and defense of the rights and interests of their members.

The rate of the CFE is fixed by the municipality or theEPCI in whose territory the person liable has taxable property.

The CFE is calculated on the rental value of real estate subject to the property tax that the company used for its professional activity during the year N-2. For example, for the contribution due in 2019, it is the property used in 2017 that is taken into account.

The rental value of business premises is determined by a fee schedule in which the premises for professional or commercial use are classified according to their physical characteristics or use.

For example, large-scale stores, places of sale, places of storage.

So the back of a commercial space, used for the storage of goods, does not have the same value as the main part dedicated to welcoming customers.

The determination of this value generally takes into account the average of the rental prices charged during a given period.

The rental value of industrial buildings and land is determined by a method called accountant based on the cost of capital assets (land, land, buildings, land facilities).

However, from 2020, where the value of technical installations, materials and tools in buildings or on land and intended for the activity does not exceed an amount of €500,000, such buildings and land are not of an industrial character. Their rental value will then be determined as that of professional premises.

Reducing tax base

For the calculation of the CFE, the land bases of industrial establishments are reduced by 30%..

The tax base is also reduced in other cases, including:

  • From 50% for new enterprises, the year following the year of establishment
  • As a proportion of downtime for certain seasonal activities (e.g. restaurants, cafes)
  • From 75% for a craftsman who employs 1 employee, 50% for 2 employees 25% for 3 employees (excluding apprentices), if the remuneration of the work (profit, wages paid and social contributions) represents more than 50% total turnover including VAT
  • In case of establishment in Corsica (reduction of 25% on the share received by communes or groupings of communes with own taxation)

Minimum contribution

Where the rental value is very low, a minimum flat-rate contribution shall be established on the basis of a base fixed by the decision of the municipality or the EPCI. The scale of this flat-rate contribution shall be adjusted annually.

This amount must be within a range that varies depending on the company's turnover or tax-free revenues.

Minimum CFE base scale based on turnover or revenue

Revenue or revenue

Minimum base (CFE due under 2020)

Until €10,000

Between €223 and €531

Between €10,001 and €32,600

Between €223 and €1061

Between €32,601 and €100,000

Between €223 and €2229

Between €100,001 and €250,000

Between €223 and €3716

Between €250,001 and €500,000

Between €223 and €5307

From €500,001

Between €223 and €6901

Corporations and individuals who have to pay the CFE are not required to report their tax bases each year to this assessment.

But a 1447-M declaration must be filed before 2e next business day 1to May by undertakings which:

  • Apply for an exemption (land use planning, live or cinematographic undertakings, GAME/JEI, Label LIR or competitiveness cluster, for example)
  • Wish to indicate a change in the consistency or the surface of goods subject to the CFE/IFER:
    • Increase or decrease in the area of the premises
    • Change in the number of employees (tax credit, artisan reduction...)
    • Change in tax element (power or number of facilities)
    • Exceeding the €100,000 (bare rent)
    • Termination or closure of installation or establishment

Change Return for Business Property Assessment (CFE) and Lump Sum Tax on Network Enterprises

Cerfa n° 14031#09 - Ministry of Finance
Other number : 1447-M-SD

Since the CFE is due by the companies which carry on their activity in 1to In January of the year, newly created enterprises (including new micro-entrepreneurs) are not subject to the CFE during the year of their creation.

Then, at the 1re tax year, they get a 50 per cent reduction in the tax base.

The business originator or transferor must file the 1447-C-SD return before 31 December of the new or resumed year so that the tax elements for the following year are established.

This concerns:

  • Establishment or takeover of an establishment during the year (unless it is a total transfer of the professional activity in the same municipality)
  • Change of operator during the year or on 1to January of the following year

If the sale of the business takes place during the year, the transferor must pay the CFE for the whole year. He must declare the change of operator before December 31.

If change takes effect on 1to in january of the following year, the new operator is taxed on the basis of the activity of his predecessor. He must make the declaration before December 31 of the year of assignment.

Initial declaration for the property tax of enterprises (CFE) and the flat tax on network enterprises (IFER)

Cerfa n° 14187*10 - Ministry of Finance
Other number : 1447-C-SD

Institutions that must pay the CFE no longer receive tax and deposit notices by mail. They should consult them on the online tax account..

Payment of the CFE is made in 2 installments.

One deposit equal to 50 % of the amount of the EFC assessed in respect of the previous year must be paid before 15 June of the current year.

The taxpayer must not pay a deposit if the amount of the CFE was less than €3,000..

The balance of the CFE must be settled by 15 December of each year, less any advance payment. Therefore, the entire CFE must be paid on that date if a deposit has not been paid.

Payment must be made in a dematerialized manner. The taxpayer has the option of:

  • Payment on the Internet through the online tax account
  • The monthly fee (membership possible until 30 June)
  • Debit at maturity (membership possible until 30 November for payment of balance)

The taxpayer may obtain a reduction in the EFC due if the taxpayer plans to cease operations during the year or if the taxpayer's tax base is likely to be reduced by at least 25% compared to the previous year. To obtain this reduction, he must submit a written, dated and signed declaration to the public accountant in charge of the cashing of the CFE, at least 15 days before the due date of the deposit.

  FYI : where the CFE payment or levy deadline coincides with a Saturday, a Sunday or a holiday, the deadline shall be extended to 1toworking day next.