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Council tax

The Council Tax ot « taxe d’habitation » in French is due by the person who has free use of a habitable property on January 1 each year. If your holiday rental is also your second home, you will be liable for the « taxe d’habitation ». However, if the rental property is purely a rental investment and you never use it personally, you should not be liable for this tax. You will be subject to the « Cotisation foncière de l’entreprise » (CFE) instead by virtue of the commercial character of renting furnished property (this tax partially replaces the former “taxe professionnelle”). It is possible to be subject to both the “taxe d’habitation” and the CFE for the same property in the same year, particularly for a seasonal let. The tax administration sees no problem in apparently taxing the same property twice.