Property tax can be a heavy financial load for homeowners, but certain exemptions and reductions may alleviate this burden. Eligible individuals, including recipients of specific allowances and seniors, can qualify for total or partial exemptions based on income limits. Additional opportunities for tax relief include temporary exemptions for new constructions and reductions for energy renovations. Homeowners must complete necessary forms and meet specific criteria to take advantage of these benefits.
Understanding Property Tax Reductions for Homeowners
Property tax is a significant financial obligation for homeowners, and many seek ways to reduce this burden. Today, we aim to clarify whether a reduction in property tax is feasible for certain individuals.
Who is Eligible for Property Tax Exemptions?
Yes, some homeowners can receive either a total or partial exemption from property tax. Notably, those who are recipients of the Supplementary Disability Allowance (ASI) or the Solidarity Allowance for the Elderly (Aspa) can qualify for an exemption without income restrictions.
Additionally, individuals aged over 75 and those receiving the Allowance for Disabled Adults (AAH) may also be eligible, albeit with specific income criteria. The income limit for determining eligibility is based on the reference tax income from the year prior to the property tax assessment.
For homeowners to qualify for a property tax exemption in 2025, their reference tax income (RFR) for 2024 must be below 12,704 euros for one part of the family quotient. Each additional half-part allows for an increase of 3,393 euros. For instance, a retired couple with two parts should not exceed an RFR of 19,490 euros.
If your RFR surpasses this limit, you might still qualify for a cap on your property tax. This mechanism ensures that property taxes do not exceed 50% of your household income. To initiate this process, complete form n°2041-DPTF-SD. For this cap to apply, the RFR for 2024 must be under 29,874 euros for one part, with additional allowances for extra half-parts.
Moreover, individuals between the ages of 65 and 75 as of January 1 of the fiscal year can benefit from a flat-rate reduction of 100 euros on their property tax. This is available to households that meet the same income criteria as required for total exemptions.
Additional Opportunities for Property Tax Reductions
If you’re investing in new construction or have purchased a property off-plan (VEFA), you could receive a temporary exemption from property tax for the first two years after the construction is completed. To take advantage of this, you must submit form H1 (for individual houses) or H2 (for apartments in collective buildings) to your local tax office within 90 days of the completion date.
Additionally, many municipalities offer reductions in local taxes for up to three to five years due to energy renovation efforts. For example, properties completed before January 1, 1989, that undergo energy-saving renovations (boilers, insulation, etc.) exceeding 10,000 euros in the previous year or 15,000 euros in the past three years may qualify for a three-year partial exemption. Conversely, new homes completed since January 1, 2009, that meet high energy performance standards can receive a five-year exemption.
To obtain these reductions, homeowners must submit a request to their property tax office, including the property’s address, completion date, and proof of incurred expenses.