France’s 3% property tax: what changes in 2026 for Monaco companies?
Do you own French property through a Monaco company? The June 2026 reform strengthens the reporting requirements used to secure exemption from France’s annual 3% property tax. It calls for a review of filings, ownership structures and property values, rather than automatically imposing an additional 3% charge.
Information checked on 9 September 2026.
Which properties and companies are concerned?
Articles 990 D onwards of the French General Tax Code cover French and foreign legal entities owning French real estate or rights in such real estate, directly or indirectly. A Monaco société civile particulière, often called an SCP or SCI, may therefore be concerned when it owns property in Beausoleil, Roquebrune-Cap-Martin, Menton or elsewhere in France.
A property located exclusively in Monaco falls outside this French tax. However, shareholders’ residence in Monaco does not by itself exempt a company owning French property. French Tax Code, articles 990 D–990 G.
What changed in June 2026?
Article 102 of Law No. 2026-534 of 25 June 2026 removes the option of securing the exemption under article 990 E, 3°(d), merely by undertaking to supply information when requested. Entities using this exemption must now report annually, by the statutory deadline of 15 May, using the applicable filing arrangements for form 2746-SD.
The information includes property held on 1 January, its value and the identity, address and holdings of shareholders or members holding more than 1% of the rights. The change also concerns French entities previously relying on that undertaking. Other exemptions remain available. Law, article 102; updated article 990 E.
Preparing for the 2027 filing season
The legislation has applied since 27 June 2026, after the ordinary May 2026 deadline. The next ordinary statutory filing deadline to prepare for is therefore, in principle, 15 May 2027, based on the position at 1 January 2027. The practical filing calendar and administrative arrangements should be checked for that season. Earlier obligations still need to be reviewed; the reform does not excuse a previous missed filing.
Indirect ownership also matters
A Monaco holding company may fall within the rules through shares in a French property-owning company, even without directly owning a building. Review the position at every level. A subsidiary’s filing does not necessarily secure its parent’s exemption.
Exemptions that remain relevant
- Below the property predominance threshold: French real estate represents less than 50% of French assets held directly or indirectly. This is a French-assets test, not a worldwide-assets test.
- Small holdings: subject to the statutory conditions concerning the entity’s location, the relevant property interest is worth less than €100,000 or represents less than 5% of the properties concerned.
- Annual disclosure: complete and timely reporting supports the corresponding disclosure-based exemption.
Receivables from French debtors, including some shareholder loans, can affect the predominance calculation. The values and ownership chain require individual assessment. Official guidance on the asset ratio.
For certain property companies outside French corporation tax, existing guidance provides specific reporting arrangements involving their usual returns, including form 2072. Their application under the updated framework should be checked rather than assuming every SCI needs a separate 2746. Official reporting guidance.
Property dealers and development stock
Property properly recorded as trading stock by companies carrying on a property-dealing or development business benefits from the exemption in article 990 F. The actual activity and stock classification must be verified; a clause in the company’s objects is insufficient. These properties nevertheless count towards the real-estate predominance ratio. Official guidance on trading stock.
A contact in France for tax notifications
Under new article 990 FA, an entity subject to the reporting requirement without a permanent establishment in France must designate a French tax-resident individual or an entity with its registered office in France to receive tax-control communications and procedural notices.
This appointment alone does not make that person liable for the tax. Without an express appointment, the legislation provides for the entity closest to the properties in the ownership chain known to the administration to receive notices on the entity’s behalf. Article 990 FA.
The financial exposure and the property valuation
Where payable, the tax is 3% of taxable market value at 1 January, without deducting acquisition loans. A wholly owned property worth €1 million, with no exemption, would therefore produce an annual €30,000 charge before possible interest and penalties. Historic purchase price or accounting value is not necessarily the current market value. Tax-base rules.
Practical steps for owners
- Map the entities and ownership percentages.
- List French properties and document their 1 January values.
- Ask your tax adviser to confirm each entity’s exemption.
- Retrieve earlier returns, undertakings and filing receipts.
- Arrange annual filings and the reception of notices in France.
Valuing your French Riviera property
Monaco Properties can help assess the market value of your apartment or villa in Beausoleil, Roquebrune-Cap-Martin or Menton, and assist with your sale or letting plans. The valuation provides supporting material for discussion with your accountant, notary or tax lawyer.
Request a French property valuation or contact Monaco Properties.
General information as at 9 September 2026. Exemptions and filing obligations depend on the individual entity’s circumstances. A property valuation does not amount to tax approval of the declared value.
