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Are premises for professional use subject to the residential tax?

Verified 19 février 2021 - Legal and Administrative Information Directorate (Prime Minister)

The residential tax is the tax you pay when you occupy a dwelling and its outbuildings (garage, parking area, etc.) either as an owner or as a tenant. This tax is also paid by companies, associations and private organisations that occupy furnished premises not subject to corporate property tax (EPC).

General case

Business premises are not subject to the residential tax if they comply with the following 3 conditions:

  • The premises have a separate entrance to the house
  • The premises are subject to business property assessment (CFE)
  • The layout of the premises does not allow them to be used as a dwelling

The residential tax is calculated by the tax department on the basis of the annual rent that the owner of a property can collect if he rents it.

The amount payable may be reduced or eliminated entirely for family expenses, low income or disability.

The rate of the housing tax is different from one municipality to another.

Tourist accommodation

Presumably, premises for professional use are not subject to residential tax if they comply with the following 3 conditions:

  • The premises have a separate entrance to the house
  • The premises are subject to business property assessment (CFE)
  • The layout of the premises does not allow them to be used as a dwelling

However, premises for professional use which are part of the personal dwelling of the self-employed (bed and breakfast, for example) are taxable at the housing tax even if they are subject to the CFE.

On deliberations, the communes of the guest rooms, furnished with tourism and rural gites located in Rural Revitalisation Areas (RBAs) may grant a residential tax exemption. The owners of these units will not have to pay the tax.

To qualify, you must send to the Public Finance Centre Declaration No. 1205-GD-SD, together with the justifications for the allocation of the premises. This shipment must be made by 31 December of each year in order to benefit from the exemption in the following year.

Apply for exemption from the residential tax for guest rooms and tourist accommodation located in rural revitalisation area (RBA)

Cerfa n° 13567*02 - Ministry of Finance
Other number : 1205-GD

The residential tax is calculated by the tax department on the basis of the annual rent that the owner of a property can collect if he rents it.

The amount payable may be reduced or eliminated entirely for family expenses, low income or disability.

The rate of the housing tax is different from one municipality to another.

  Warning : the return is for one year only.