Everything You Need to Know About the Business Property Tax (CFE)
The Cotisation Foncière des Entreprises (CFE), or Business Property Tax, is a local tax that applies to professionals engaged in regular, self-employed activities as of January 1 of the tax year. The amount owed may change from year to year. Here’s a comprehensive guide to understanding how it works.
What Is the CFE?
The CFE is one of two components of the Contribution Économique Territoriale (CET), alongside the Cotisation sur la Valeur Ajoutée des Entreprises (CVAE), or Value-Added Contribution. This local tax is based on the premises used by businesses for their operations.
An additional levy may be applied to help fund regional Chambers of Commerce and Industry (CCI) and Chambers of Trades and Crafts (CMA), depending on the enterprise’s affiliation.
Who Is Liable for the CFE?
The CFE applies to all professionals—whether individuals or companies—conducting a habitual, non-salaried activity in France as of January 1 of the relevant tax year, regardless of their legal status, business type, or tax regime.
This includes micro-entrepreneurs under standard conditions.
Important to note:
If your annual turnover is €5,000 or less, you’re exempt from the minimum contribution.
New businesses are exempt from paying the CFE in their first calendar year of operation.
Some businesses qualify for full or partial exemptions—either automatically or upon request—on a temporary or permanent basis. These are outlined in Articles 1449 to 1466F of the General Tax Code.
How Is the CFE Calculated?
The amount of CFE owed is determined annually.
The primary basis for the CFE is the rental value of the business premises used in the course of the professional activity in year N-2. For example, the 2024 CFE is calculated based on property used in 2022.
In cases where no premises are used or the rental value is minimal, a minimum tax base is applied. This base is set by local authorities and depends on the turnover from year N-2, using a legal bracket system:
| Annual Revenue in N-2 | Minimum Tax Base (set locally) |
|---|---|
| ≤ €10,000 | €243 to €579 |
| €10,001 – €32,600 | €243 to €1,158 |
| €32,601 – €100,000 | €243 to €2,433 |
| €100,001 – €250,000 | €243 to €4,056 |
| €250,001 – €500,000 | €243 to €5,793 |
| > €500,000 | €243 to €7,533 |
Source: Article 1647 D of the French General Tax Code
The final CFE amount is the product of the taxable base and the tax rate set by the relevant municipality or intercommunal body (EPCI).
Use the official online tool to find local tax rates applicable to businesses in a specific commune.
Additional Contribution
The supplementary CFE charge is calculated using the same base as the main CFE. The applicable rate is determined annually by the Regional Chamber of Commerce. For 2024, it stands at 1.12% (Article 1600 of the General Tax Code).
How to Declare and Pay the CFE
CFE Declaration
A first-time CFE declaration must be submitted by January 1 of the year following the creation of the business. For example, if you start a company in 2024, you must file your CFE declaration before January 1, 2025. The form is available on impots.gouv.fr.
After this initial filing, no annual declaration is required—unless there are changes affecting your liability (e.g., change in premises size or closure of a location). If such a change occurs, submit form 1447-M-SD by the second business day after May 1.
CFE Payment
If your previous year’s CFE exceeded €3,000 and you’ve not opted for monthly payments, your tax must be paid in two installments:
Advance Payment: 50% of the prior year’s CFE by June 17, 2024
Final Payment: Remaining balance by December 16, 2024
Payment Options:
Automatic Debit at Due Date: Enroll by May 31, 2024 via impots.gouv.fr or call 0809 401 401 (Monday–Friday, 8:30 a.m.–7:00 p.m., free service + call cost).
Monthly Debit: Sign up before June 15, 2024, through the same channels.
Online Payment: Available until June 17, 2024 or December 16, 2024, depending on the installment. Click “Pay” on your digital tax notice (ensure your bank account is registered in your professional space).
CFE Tax Notice and Payment Deadline
The 2024 CFE notice is available online via your account on impots.gouv.fr. The deadline to pay is December 16, 2024, at midnight.
To access and pay your notice, you must first create a professional account on the tax website.
If you’re already enrolled in automatic debit, your payment will be processed automatically after the deadline—no further action is required.
Otherwise, you may:
Subscribe to automatic debit before November 30, 2024
Pay directly online by December 16, 2024
Learn More
For complete guidance and updates, visit the official impots.gouv.fr website or consult your tax advisor.
