The clocks have gone forward, winter is officially over and the lovely sunny weather seems finally to have arrived. Spring has sprung but of course April also hails the beginning of tax season in France and the start of the new tax year in the UK, bringing with it new financial laws and measures.
Financial update April 2025
By Katriona Murray-Platon
This article is published on: 4th April 2025
The costs of buying a house in France are usually bourne by the purchaser. Most of these costs are taxes which are paid to the state, the department and the town/village (commune) but there is also the Notaire’s fee which needs to be taken into consideration. The amount taken by the department is usually around 3.8% of the purchase price but the department councils can decide to amend this rate every year and increase it by between 1.2% and 4.5% maximum. This maximum amount can then be increased by a further 0.5% to make it 5% as from 1st April 2025 and 31st March 2028 (Article 116 of the finances law for 2025, no2025-127 of 14.02.2025).Paris has already decided that this 5% rate will apply to deeds of sale signed as from 1st April. The date upon which these rates come into effect will depend on when the council notifies its decision to the tax authorities.
Some departments may decide to reduce or even not apply this rate. However first time buyers are exempt from this rate and will pay no more than 4.5%.
The measure introducing the lower VAT threshold of €25,000 has been postponed until 1st June 2025. VAT will apply to auto entrepreneurs as soon as their turnover exceeds €27,500 (if their turnover was less than €25,000 in 2024). If their turnover is less than €27,500 in 2025, the VAT will be due from 1st January 2026.
As from 2nd April, those people with EU, EEA or Swiss citizenship, must have an Electronic Travel Authorization (ETA). This will cost approximately €12 and can be obtained from the UK ETA app or the GOV.UK website.
If you need to take a taxi or ambulance to go to the hospital or return home you may have to share your journey with another patient. The aim of this measure is to reduce costs for the health care service. Two patients may be required to share a taxi or ambulance for part or all of the journey if the prescription specifies that the health of the patient would not be jeopardized by sharing the transport with someone else. However this can only apply if the detour to collect the other patient is no more than 10 km per patient and up to 30km maximum. Also the waiting time for the taxi/ambulance before or after the appointment cannot be longer than 45 minutes. This only applies for medical visits to treat certain kinds of conditions such as cancer, chronic liver failure etc. The patient can refuse to share their taxi or ambulance but will not be covered by their mutuelle and will not be fully reimbursed.
The online tax declaration service will begin from 10th April 2025. Although the tax form doesn’t change dramatically from one year to the next, there can still be small changes which will not be known until the declaration service starts after 10th April.
Also, if this is your first time doing your tax return, you will need to submit a paper return.
The downloadable versions of the forms will also be available after 10th April.
After a busy March, I am set for an even busier April with plenty of appointments in my diary. I am looking forward to driving through the beautiful French countryside and catching up with my clients. If you have any questions and would like to make an appointment with me to discuss your financial situation, please do get in touch.