3% tax on market value

The tax on the market value of property owned directly or indirectly in France by any French or foreign legal entity, whether incorporated or unincorporated, is provided for by Articles 990 D, 990 E, 990 F and 990 G of the French General Tax Code.
Its rate is 3% and it is set on the basis of the market value of property and property rights owned in France with a number of exemption options.
Under Article 990 D of the French General Tax Code, legal entities, organisations, trusts or similar structures that own property or rights in rem in France on 1 January of the tax year, either directly or through intermediaries, are liable to an annual 3% tax based on the market value of said property or rights.

Scope  

The tax applies to all French and foreign legal entities, organisations, trusts or similar structures (legal bodies), regardless of their legal form, whether incorporated or unincorporated, that own property or rights in rem in France on 1 January of the tax year, either directly or through intermediaries.

Return no. 2746

Return no. 2746 must be filed by 15 May each year by legal entities liable to the 3% tax and by legal entities that are exempt.

Filing must be carried out as follows:

  • For legal entities that have their registered office in France and for other legal entities that carry on their operations in France in one or several establishments, with the Business Tax Department in the location of the main establishment for French companies, with this place being deemed the actual head office
     
  • For legal entities other than those mentioned above that own one or more properties in France or hold rights in rem over these properties, with the Business Tax Department in the location of these properties or rights. If there are several filing locations once this rule has been applied, the return for all the relevant properties shall be filed with the Foreign Business Tax Department whose contact details are as follows:

Service des impôts des entreprises étrangères
DRESG
10, rue du Centre
TSA 20011
93160 Noisy-le-Grand