Commercial Lease: Who Pays for What? Understanding Taxe Foncière Locataire and Other Charges

/in /by

When signing a commercial lease, it’s essential to define the distribution of costs between the landlord and the tenant. Among these expenses, the taxe foncière locataire (property tax for tenants) is a key point of discussion. French law regulates these costs, requiring an itemized breakdown in the lease agreement. Additionally, landlords must inform tenants about past or planned maintenance work.

What Is Included in the Inventory of Charges?

A commercial lease must include a detailed breakdown of expenses, classified into five categories:

  1. Operational charges – Services provided by the landlord
  2. Repairs – Maintenance and renovation costs
  3. Legally mandated charges – Government-imposed obligations
  4. General maintenance – Regular upkeep of the premises
  5. Taxes and levies – Including taxe foncière and other applicable taxes

For properties with multiple tenants, the lease must specify how charges, including the taxe foncière locataire, are distributed—typically based on the proportion of space occupied.

Each year, landlords must provide an updated expense report to tenants, including a breakdown of all costs, no later than September 30 of the following year. In co-owned properties, this must be done within three months of the official presentation of co-ownership accounts.

Can New Charges Be Added?

Yes, but only if they fall within one of the five predefined categories. A new tax or maintenance fee introduced mid-lease may be allocated accordingly.

Which Charges Must the Landlord Pay?

Certain costs must always be covered by the landlord, and cannot be transferred to the tenant, even if stated in the lease. These include:

  • Major structural repairs (e.g., foundation, roof, walls, electrical system, plumbing)
  • Renovations due to property wear or legal compliance
  • Property management fees, including rent collection
  • Taxes and levies related to property ownership, such as the taxe foncière, unless contractually transferred to the tenant
  • Costs related to vacant spaces – If a property has multiple tenants, the landlord cannot pass on costs related to unoccupied units

💡 Important: If the lease was signed or renewed before November 5, 2014, the landlord and tenant could freely negotiate the distribution of all costs, including taxe foncière locataire and repair fees.

Which Charges Must the Tenant Pay?

Always Covered by the Tenant

Tenants are responsible for:

  • Utility bills – Water, gas, electricity
  • Routine maintenance and minor repairs, such as painting, wallpapering, heating system upkeep, and plumbing repairs
  • Shared building maintenance, including elevator servicing and common area cleaning
  • Aesthetic improvements, if exceeding standard replacement costs

When Does the Tenant Pay the Taxe Foncière?

While taxe foncière is a property tax typically paid by the landlord, it can be transferred to the tenant if explicitly mentioned in the lease agreement. Other taxes tenants may be responsible for include:

  • Taxe foncière and related surcharges (if contractually agreed)
  • Taxes related to the use of the premises
  • Service-related taxes, such as waste collection fees, street cleaning charges, and the office space tax in Île-de-France

💡 Key Reminder: If the lease was signed before November 5, 2014, landlords and tenants had complete freedom to negotiate how taxe foncière locataire and other charges were allocated.

Landlord’s Obligation to Inform Tenants About Maintenance Work

Every three years, landlords must provide tenants with:

  1. A projected maintenance plan, outlining expected work over the next three years with a budget estimate
  2. A summary of completed maintenance work from the past three years, including costs

These documents must be provided within two months of each three-year lease renewal.

Tenants also have the right to request detailed supporting documents for past or planned maintenance expenses.

How Are Maintenance Costs Shared in Multi-Tenant Properties?

For properties with multiple tenants (e.g., shopping centers, office buildings), the lease must clearly define how taxe foncière locataire and repair costs are distributed.

Final Thoughts on Taxe Foncière Locataire and Lease Expenses

Understanding which costs fall on the landlord vs. the tenant is crucial for both parties in a commercial lease. While the taxe foncière is typically a landlord’s responsibility, it can be passed on to the tenant if explicitly stated in the contract. Tenants should carefully review their lease agreements to avoid unexpected costs and ensure compliance with legal regulations.