The tax on garbage is due even if the furnished rental is vacant!

Understanding the French Garbage Collection Tax (TEOM): A Guide for Landlords and Tenants

In France, all homeowners must pay a local tax known as the Taxe d’enlèvement des ordures ménagères (TEOM), which covers waste collection services for built properties. This tax applies even if the property is vacant, making it an important consideration for landlords.

Who Pays the Garbage Collection Tax (TEOM)?

Landlords' Responsibilities

Landlords who pay the property tax are also responsible for the garbage collection tax, regardless of whether the property is occupied. The Ministry of Finance emphasizes that TEOM must be paid if the municipality provides waste collection services, even if the property is temporarily unoccupied.

Exceptions and Waivers of TEOM

Landlords may apply for a waiver or reduction of TEOM if:

1. The property has been vacant for more than three months in a year.
2. The vacancy was beyond the taxpayer's control (e.g., due to a sale or relocation abroad).

To apply for the reduction or exemption, landlords must submit supporting documents to the French public finance center responsible for their property's neighborhood by December 31st of the following year.

Additionally, TEOM does not apply to:

• Permanently tax-exempt properties.
• Dwellings in areas with no waste collection services.

Do Tenants Pay the Garbage Collection Tax in France?

Yes, tenants indirectly pay TEOM through their rental charges. Costs associated with services that directly benefit tenants, such as waste collection and sidewalk sweeping, are recoverable by landlords via monthly rental charges.

How It Works:

• For unfurnished rentals, tenants pay a monthly provision on charges, followed by an annual adjustment (called regularization).

• For furnished rentals, tenants typically pay a flat monthly rate.

On average, TEOM costs around €124 per year per inhabitant, making it an essential line item in rental budgets.

Essential Considerations for Tenants and Landlords about TEOM

For Landlords:

Ensure TEOM compliance even for vacant properties unless eligible for an exemption. Keep detailed records to support waiver applications for vacant properties.

For Tenants:

Review lease agreements to understand the allocation of rental charges and budget for monthly provisions or flat-rate payments covering waste collection services.

The garbage collection tax is a shared responsibility between landlords and tenants in France. While landlords pay TEOM as part of property taxes, tenants contribute through recoverable rental charges. Understanding the rules and potential waivers ensures clarity and compliance for all parties.

credit photo @Paweł Czerwiński

Source: Toutsurmesfinances, Bouygues Immobilier, l-expert-comptable