CFE France 2026: What Is the Cotisation Foncière des Entreprises?

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Updated: September 16, 2026 – CFE in France: calculation, exemptions, declaration and payment

The Cotisation Foncière des Entreprises (CFE) is a French local business tax imposed on many professionals carrying out a non-salaried activity in France.

It is one of the two components historically forming the Contribution Économique Territoriale (CET), alongside the Cotisation sur la Valeur Ajoutée des Entreprises (CVAE).

The CFE is generally linked to the business premises used for the professional activity. However, even a business that does not have dedicated commercial premises can potentially owe a minimum CFE contribution, depending on its turnover and local rules.

The amount can therefore vary significantly from one business and municipality to another.

Who Has to Pay CFE in France?

The CFE generally applies to individuals and companies carrying out a habitual, non-salaried professional activity in France.

It can therefore concern:

  • sole traders;
  • micro-entrepreneurs;
  • professionals and consultants;
  • liberal professions;
  • commercial businesses;
  • industrial businesses;
  • French companies;
  • certain foreign businesses with a taxable establishment in France.

The legal form of the business does not, by itself, determine whether CFE applies.

A micro-entrepreneur, for example, is not automatically exempt simply because the business operates under the micro regime.

However, numerous statutory exemptions exist depending on the nature of the activity, turnover, location and other circumstances.

Which Businesses Are Exempt from the Minimum CFE?

One of the most important thresholds concerns businesses whose annual turnover or receipts do not exceed €5,000.

Taxpayers whose turnover or receipts are €5,000 or less are exempt from the minimum CFE contribution, subject to the applicable conditions, including the European de minimis aid rules. (legifrance.gouv.fr)

This does not mean that every business with turnover below €5,000 is automatically exempt from every aspect of CFE in every circumstance. The exact tax position should still be checked.

Other exemptions can apply to specific activities or situations under the French General Tax Code.

Is a New Business Exempt from CFE in Its First Year?

Yes, a newly created business generally benefits from an exemption from CFE for its first calendar year of activity.

This means that creating a business during 2026 does not normally result in CFE being payable for 2026.

However, the business still has an important administrative obligation: it must file its initial CFE declaration so that the tax administration can establish the basis for the following year.

For an establishment created during year N, the initial declaration 1447-C-SD must generally be submitted by December 31 of year N. (impots.gouv.fr)

For example:

Business created in 2026 → initial CFE declaration due by December 31, 2026 → CFE generally begins in 2027.

How Is CFE Calculated?

The CFE is primarily based on the rental value of real estate subject to property tax used by the business for its professional activity.

The relevant property information is generally determined using the statutory reference period.

When a business has premises with a taxable rental value, the CFE calculation is therefore linked to the value attributed to those premises.

However, businesses without premises — or whose rental value is very low — can be subject to the minimum CFE contribution.

What Is the Minimum CFE in 2026?

The minimum CFE is determined using a taxable base selected by the municipality or, in certain cases, the competent EPCI.

The legal minimum-base ranges applicable from July 1, 2026 are:

Turnover or receipts Minimum taxable base in 2026
€10,000 or less €250 to €597
More than €10,000 to €32,600 €250 to €1,194
More than €32,600 to €100,000 €250 to €2,509
More than €100,000 to €250,000 €250 to €4,183
More than €250,000 to €500,000 €250 to €5,974
More than €500,000 €250 to €7,769

These are taxable-base ranges, not the amount of CFE actually payable.

The municipality or EPCI chooses the applicable minimum base within the statutory range. The applicable local CFE rate is then applied to the taxable base. (legifrance.gouv.fr)

This is an important distinction: a €597 minimum base does not mean that the taxpayer will necessarily receive a €597 CFE bill.

Why Does the CFE Amount Differ Between Cities?

The CFE is a local tax, so the final amount depends partly on the tax rate applicable where the business is established.

Two businesses with identical turnover and identical premises can therefore potentially pay different CFE amounts if they are located in different municipalities or intercommunal areas.

The calculation can involve:

Taxable base × local CFE rate

with additional taxes or contributions potentially appearing on the assessment.

Businesses should therefore check the rates applicable to their establishment rather than relying on a national “CFE rate.”

What Turnover Is Used for the Minimum CFE?

The turnover or receipts used for the minimum CFE are based on the statutory reference period, generally corresponding to the year N-2 for a CFE assessment in year N, subject to the specific rules governing the reference period.

If the reference period does not cover twelve months, the turnover or receipts can be adjusted to a twelve-month equivalent under the rules. (legifrance.gouv.fr)

For example, the turnover used for determining the 2026 CFE may generally relate to the appropriate 2024 reference period, subject to the statutory rules and exceptions.

This is why a business’s CFE can sometimes appear disconnected from its most recent turnover.

CFE for Businesses Working From Home

A professional does not necessarily avoid CFE simply because they work from a home office.

If no business premises are subject to the ordinary rental-value calculation, the taxpayer may instead be assessed using the minimum CFE base, provided the relevant conditions are met.

This can affect:

  • freelancers;
  • consultants;
  • online businesses;
  • independent professionals;
  • home-based businesses;
  • certain micro-entrepreneurs.

The absence of a commercial lease therefore does not automatically mean that no CFE is due.

CFE and Micro-Entrepreneurs

Micro-entrepreneurs can be liable for CFE.

Being under the micro-entrepreneur regime does not, by itself, provide a permanent CFE exemption.

A micro-entrepreneur may benefit from:

  • the first-year CFE exemption;
  • the €5,000 turnover exemption from the minimum contribution;
  • activity-specific exemptions;
  • location-based exemptions where applicable.

Micro-entrepreneurs should therefore check their CFE notice rather than assuming that the micro regime eliminates the tax.

Additional Taxes on the CFE

The CFE assessment can include additional contributions.

One important example is the taxe additionnelle à la CFE, which helps finance the Chambers of Commerce and Industry.

The rate of this additional CFE tax is 1.12% under Article 1600 of the General Tax Code. (bofip.impots.gouv.fr)

Businesses subject to the relevant Chamber of Trades and Crafts rules can also be concerned by the corresponding taxe pour frais de chambres de métiers et de l’artisanat (TCMA).

Micro-enterprises may pay these chamber-related contributions through their social-contribution system rather than seeing them separately on their CFE notice, depending on the applicable regime. (impots.gouv.fr)

How Do You Declare CFE for the First Time?

When an establishment is created or acquired during the year, the business generally has to file the 1447-C-SD initial CFE declaration.

The declaration provides information such as:

  • business name;
  • activity;
  • establishment address;
  • SIRET number;
  • date of creation;
  • premises used for the activity;
  • relevant property information;
  • number of employees;
  • turnover information.

For an establishment created during year N, the declaration must generally reach the relevant Service des Impôts des Entreprises (SIE) by December 31 of year N. (impots.gouv.fr)

The current 1447-C-SD is used to provide the information necessary to establish the CFE for the following year. (impots.gouv.fr)

Do You Have to File a CFE Declaration Every Year?

No.

Once the initial declaration has been submitted, a business does not normally have to submit a complete CFE declaration every year.

However, a supplementary or corrective declaration may be required when relevant information changes.

For example, the 1447-M-SD can be used to report changes affecting the CFE calculation, such as changes in premises or other elements of the taxable situation. (impots.gouv.fr)

The deadline depends on the nature of the change and the relevant tax year, so businesses should check the current instructions attached to the form.

When Is CFE Paid in 2026?

The CFE is generally paid through the business’s professional tax account.

For 2026, the principal payment dates are:

  • June 15, 2026: CFE advance payment, when applicable;
  • December 15, 2026: payment of the balance.

The June advance applies when the amount of CFE placed into collection for the previous year is at least €3,000, provided the business has not opted for monthly payment. The advance generally corresponds to 50% of the previous year’s CFE. (impots.gouv.fr)

The 2026 CFE balance is due by December 15, 2026. (impots.gouv.fr)

How Can You Pay CFE?

CFE payments are made electronically.

The principal options are:

  • direct online payment;
  • automatic payment at maturity;
  • monthly direct debit.

The CFE assessment is available electronically through the business’s professional space on impots.gouv.fr. CFE notices are no longer sent by ordinary post. (impots.gouv.fr)

To consult the notice, the business must have the appropriate professional account and access to the CFE service.

How to Access Your CFE Tax Notice

To view your CFE notice:

  1. Log into your professional space on impots.gouv.fr.
  2. Go to the tax-account consultation section.
  3. Select CFE / IFER.
  4. Open the relevant assessment notice.
  5. Check the taxable base, local rate, additional taxes and amount payable.

The French tax administration confirms that the professional account is necessary to consult CFE notices online. (impots.gouv.fr)

What Happens If You Miss the CFE Payment Deadline?

CFE is subject to the normal French tax collection rules.

A business that fails to pay by the applicable deadline can face additional amounts and collection procedures.

Because CFE is paid electronically, businesses should ensure that:

  • their professional account is active;
  • their bank details are correctly registered;
  • their CFE notices are monitored;
  • automatic-payment arrangements are kept up to date.

For businesses paying significant CFE amounts, setting up monthly payment can help spread the cash-flow impact over the year.

Can CFE Be Paid Monthly?

Yes.

Businesses can opt for monthly direct debit.

The CFE is generally spread over 10 monthly payments from January to October, followed by an adjustment where necessary.

The monthly payments are initially calculated based on the previous year’s CFE, with a later adjustment if the final amount changes. (impots.gouv.fr)

For 2026, the administration allows businesses to subscribe to monthly payment for the current year by the applicable June deadline. (impots.gouv.fr)

What Is the Difference Between CFE and CVAE?

Both CFE and CVAE are components of the Contribution Économique Territoriale (CET).

However, they are not calculated in the same way.

CFE is primarily connected to the rental value of business premises, with a minimum contribution applying in certain situations.

CVAE is linked to the value added generated by eligible businesses.

The CVAE is currently subject to a gradual reform and phase-out under the French tax legislation, so businesses should not assume that the old CET structure will remain unchanged indefinitely.

For most small businesses and micro-entrepreneurs, the CFE is generally the more immediately relevant component.

CFE and Foreign Companies Operating in France

A foreign company does not automatically escape French CFE simply because its head office is located outside France.

The key question is whether the company carries out a taxable activity or has an establishment in France under the applicable French tax rules.

This can be particularly relevant for international companies:

  • opening an office in France;
  • maintaining business premises;
  • operating through a French establishment;
  • employing staff;
  • or carrying out an activity that creates a French taxable presence.

International businesses should therefore examine their French establishment and tax position before assuming that no local business tax is due.

Common CFE Mistakes to Avoid

Businesses frequently make avoidable CFE mistakes, particularly during the first year of operation.

Assuming that no office means no CFE

Working from home or remotely does not automatically eliminate CFE.

Forgetting the initial 1447-C declaration

The first declaration remains important even though the business is normally exempt from paying CFE during its first calendar year.

Confusing the taxable base with the final tax

The minimum CFE figures are taxable-base ranges, not fixed tax bills.

Using old minimum-base figures

The CFE minimum-base limits are periodically updated. The figures published for 2024 should not be reused for a 2026 article.

Missing the professional-space notice

CFE notices are available online. Businesses should not wait for a paper notice to arrive.

Assuming the micro regime means no CFE

Micro-entrepreneurs can be liable for CFE after the first year, subject to applicable exemptions.

CFE France 2026: Frequently Asked Questions

What is CFE in France?

CFE stands for Cotisation Foncière des Entreprises. It is a local tax generally imposed on businesses and self-employed professionals carrying out a habitual non-salaried activity in France.

Is CFE the same as business property tax?

Yes. CFE is commonly described in English as the French Business Property Tax, although the French name should generally be retained for legal and administrative purposes.

Who pays CFE?

Many self-employed professionals, companies and businesses operating in France are liable for CFE, regardless of their legal structure or tax regime.

Is a micro-entrepreneur subject to CFE?

Yes, a micro-entrepreneur can be subject to CFE. The first calendar year is generally exempt, and businesses with turnover or receipts of €5,000 or less benefit from the exemption from the minimum contribution, subject to the statutory conditions.

How much is CFE in 2026?

There is no single national CFE amount. It depends on factors including the property’s taxable rental value, the local tax rate and, where applicable, the minimum CFE base.

From July 1, 2026, the statutory minimum-base range starts at €250 and can reach €7,769 for businesses with turnover above €500,000, before applying the applicable local tax rate. (legifrance.gouv.fr)

What is the CFE minimum for a business earning €5,000 or less?

Businesses with annual turnover or receipts of €5,000 or less are exempt from the minimum CFE contribution, subject to the applicable conditions. (legifrance.gouv.fr)

When does a new business pay CFE?

A newly created business generally does not pay CFE during its first calendar year. The business must nevertheless submit the initial CFE declaration within the required deadline.

When is CFE due in 2026?

The 2026 balance is due by December 15, 2026. Businesses meeting the conditions for an advance payment generally had to pay the 2026 CFE advance by June 15, 2026. (impots.gouv.fr)

How do I pay CFE?

CFE is paid electronically through the professional space on impots.gouv.fr, either directly online or through an approved automatic-payment arrangement. (impots.gouv.fr)

Do I need to declare CFE every year?

Not normally. An initial declaration is required when the establishment is created, while subsequent declarations are generally required only when relevant changes affect the CFE calculation.

Conclusion: Understanding CFE in France in 2026

The Cotisation Foncière des Entreprises (CFE) remains an important local tax for businesses and self-employed professionals operating in France.

The amount is not determined by one universal rate. It depends on the business’s taxable premises, local tax rates, turnover and, where relevant, the minimum CFE base.

For 2026, businesses should particularly remember:

  • the €5,000 turnover threshold for exemption from the minimum contribution;
  • the first-calendar-year exemption for newly created businesses;
  • the December 31 deadline for the initial 1447-C declaration for establishments created during the year;
  • the June 15, 2026 deadline for the CFE advance when applicable;
  • the December 15, 2026 deadline for the CFE balance;
  • and the requirement to manage CFE notices and payments through the professional tax account.

For international entrepreneurs, freelancers and companies establishing themselves in France, understanding CFE is an important part of correctly budgeting the ongoing cost of doing business in France.

ESCEC International can assist international entrepreneurs and businesses with French accounting, tax compliance, business setup and ongoing tax obligations, including local business taxation.

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