Bordeaux
Taxation
Sections
Comprehensive Guide to Taxation in Bordeaux, France
Taxation in France, including Bordeaux, is governed by national laws, but there are some local nuances and practical considerations to keep in mind. Below is a detailed breakdown of the types of taxes, their rates, calculation methods, payment procedures, deadlines, and local resources to help you navigate the system effectively.
1. Types of Taxes in Bordeaux, France
A. Income Tax (Impรดt sur le Revenu)
Income tax in France is progressive, meaning the rate increases as your income rises. It applies to residents of Bordeaux and is calculated based on your worldwide income if you are a French tax resident.
Key Points:
- Tax Residency: You are considered a French tax resident if:
- Your main home (foyer) is in France.
- You spend more than 183 days in France in a calendar year.
- Your principal professional activity or economic interests are in France.
- Taxable Income: Includes salaries, pensions, rental income, investment income, and business profits.
- Tax Rates (2023):
- Up to โฌ10,777: 0% (tax-free)
- โฌ10,778 โ โฌ27,478: 11%
- โฌ27,479 โ โฌ78,570: 30%
- โฌ78,571 โ โฌ168,994: 41%
- Over โฌ168,994: 45%
- Deductions and Credits: France offers various deductions, such as for childcare, home renovations (energy efficiency), and charitable donations.
How to File:
- Online Filing: Most residents are required to file their taxes online via the French tax portal impots.gouv.fr.
- Paper Filing: Available for first-time filers or those without internet access.
- Deadlines:
- Paper filing: Typically mid-May.
- Online filing: Varies by region; for Bordeaux, it is usually late May or early June.
B. Property Tax (Taxes Fonciรจres)
Property owners in Bordeaux are subject to property tax, which is levied annually.
Key Points:
- Who Pays: Owners of real estate (houses, apartments, land) as of January 1 of the tax year.
- Calculation: Based on the "cadastral rental value" (valeur locative cadastrale) of the property, which is determined by local authorities and adjusted annually.
- Rates: Vary by municipality. In Bordeaux, the rate is set by the city council and is relatively moderate compared to other French cities.
- Exemptions: Some exemptions apply, such as for new constructions (up to 2 years) or for elderly/disabled individuals under certain conditions.
Payment:
- Due Date: Typically mid-October.
- How to Pay: Online via impots.gouv.fr, direct debit, or at local tax offices.
C. Housing Tax (Taxe d'Habitation)
This tax is being phased out for most primary residences. However, it still applies to secondary residences and high-income households.
Key Points:
- Who Pays: Residents (owners or tenants) of a property as of January 1 of the tax year.
- Calculation: Based on the cadastral rental value of the property and local rates.
- Exemptions: Most primary residences are now exempt, but secondary homes are still taxed.
Payment:
- Due Date: Typically mid-November.
- How to Pay: Same as property tax.
D. Value-Added Tax (VAT or TVA)
VAT is a consumption tax applied to goods and services in France, including Bordeaux.
Key Points:
- Standard Rate: 20%
- Reduced Rates:
- 10% for certain services (e.g., restaurants, public transport).
- 5.5% for essential goods (e.g., food, books).
- 2.1% for specific items (e.g., newspapers, some medications).
- Who Pays: Businesses collect VAT from consumers and remit it to the government.
Practical Tip:
- VAT is included in the price of most goods and services, so you wonโt need to calculate it separately.
E. Social Security Contributions (Cotisations Sociales)
If you work in Bordeaux, you will contribute to Franceโs social security system, which funds healthcare, pensions, unemployment benefits, and more.
Key Points:
- Employee Contributions: Around 20-25% of gross salary.
- Employer Contributions: Around 40-45% of gross salary.
- Self-Employed Contributions: Vary based on income and profession.
F. Other Taxes
- Wealth Tax (Impรดt sur la Fortune Immobiliรจre - IFI): Applies to individuals with real estate assets exceeding โฌ1.3 million.
- Inheritance and Gift Tax: Rates depend on the relationship between the giver and receiver and the value of the assets.
2. Payment Procedures and Deadlines
- Online Payments: The French tax portal impots.gouv.fr is the primary platform for filing and paying taxes. You can also set up direct debits or pay via bank transfer.
- Local Tax Offices: Payments can also be made at local tax offices (Trรฉsorerie) in Bordeaux.
- Deadlines: Ensure you adhere to the deadlines for each tax type to avoid penalties.
3. Local Tax Offices in Bordeaux
If you need assistance or prefer in-person support, you can visit the local tax office in Bordeaux:
- Centre des Finances Publiques de Bordeaux
- Address: 6 Rue Franรงois de Sourdis, 33000 Bordeaux, France
- Phone: +33 (0)5 56 99 33 33
- Hours: Typically open Monday to Friday, 9:00 AM to 4:00 PM (check for updates).
- Services: Assistance with tax declarations, payments, and general inquiries.
4. Online Resources
- Official Tax Portal: impots.gouv.fr
- File and pay taxes, access tax notices, and update personal information.
- France Connect: A secure platform to access government services, including tax services.
- Local Government Website: Bordeaux.fr for municipal updates and local tax rates.
5. Cultural and Practical Tips
- Language Barrier: Most tax documents and online resources are in French. Consider hiring a tax advisor or translator if you are not fluent.
- Tax Advisors: Local accountants (experts-comptables) or tax consultants can help you navigate the system, especially if you have complex finances.
- Keep Records: Retain copies of all tax filings, receipts, and correspondence for at least three years.
- Be Proactive: French tax authorities are strict about deadlines and compliance. Late payments or filings can result in penalties.
6. Summary Checklist
- Determine your tax residency status.
- Gather all necessary documents (e.g., income statements, property details).
- Register on impots.gouv.fr if you havenโt already.
- File your income tax return by the deadline (May/June).
- Pay property and housing taxes (October/November).
- Consult a local tax advisor if needed.
By understanding the French taxation system and leveraging local resources, you can ensure compliance and avoid unnecessary stress while living in Bordeaux.