Natural or legal persons conducting self-employed activities must pay the Business Property Contribution (CFE) annually.
The CFE, alongside the Business Value Added Contribution (CVAE), forms part of the Territorial Economic Contribution (CET). This tax is levied solely on property subject to property tax. Here's a comprehensive guide.
The CFE is an annual tax for professionals exercising self-employed activities as of January 1st of the tax year. It's calculated on the rental value of property tax-eligible assets in the municipalities where the business operates premises or land.
It applies to all companies and individuals in self-employed activities, regardless of legal status, activity type, tax regime, or nationality.
Businesses with turnover ≤ €5,000 are exempt. Rental and subletting of unfurnished residential buildings are excluded unless part of a professional activity. Furnished rentals in the owner's primary residence are also exempt.
Certain professionals are automatically exempt, such as taxi drivers, door-to-door sellers, press services, lawyers, private educational institutions, and public authorities. Others may qualify for temporary exemptions under specific conditions.
The CFE tax base consists of the rental value of property tax-eligible assets used for business in year N-2. For the 2020 CFE, 2018 usage applies.
Reductions include:
For low rental values or no premises, a minimum flat-rate applies, set by the municipality based on N-2 turnover. For turnover ≤ €10,000, it's €221-€526 (2020 CFE).
The final CFE = tax base × municipal tax rate. Contact your local Business Tax Service (SIE) for your rate.
No annual declaration is needed for standard cases. However, file Form 1447-M by the 2nd working day after May 1st if seeking exemption, reporting changes in premises area, employee numbers, tax elements, exceeding €100,000 threshold, or business cessation.
Access your CFE notice via your professional account under "My Services" > "View > CFE Notice." The "CFE Notices Table" summarizes by year.
Payment splits into two: a 50% deposit (prior year's amount) due June 15th if CFE > €3,000. Balance due December 15th. No deposit means full payment by year-end.
Options: online via tax account, monthly direct debit (enroll by June 30th), or direct debit at due date.
For activity cessation or ≥25% base reduction vs. N-1, request a reduction with a written, signed declaration to the collector ≥15 days before deposit due date.
Contact your Business Formalities Center based on activity (commercial, craft, agricultural, liberal), legal status, and location. Commercial businesses go to CCI; crafts to CMA; liberals to URSSAF. The PACTE law aims for a single online portal by 2023, simplifying formalities.
