CFE: the French local business tax explained
The CFE (cotisation foncière des entreprises) is a local tax owed by almost every company and self-employed person in France, including businesses that have no office of their own. Its amount depends on the commune where the business is located, which makes the choice of your registered office address more important than it seems.
Who pays the CFE
The CFE is due by companies and individuals who carry out a non-salaried professional activity in France on 1 January of the tax year, whatever their legal form and whether or not they make a profit.
Domiciled companies are not exempt: the tax is due in the commune of the domiciliation address.
How the CFE is calculated
The CFE is based on the rental value of the property the business used two years earlier, multiplied by a rate voted by the commune. When this value is very low or nil, as is the case for a company that is domiciled or works from home, a minimum contribution applies instead.
Each commune sets its minimum contribution within legal brackets that depend on your turnover. As a result, the same business can pay very different amounts depending on the town where its registered office is located.
Exemptions and reductions
A new business is exempt from CFE for the calendar year in which it was created. The following year, its tax base is reduced by half.
Businesses with a turnover of 5,000 euros or less are exempt from the minimum contribution. Some activities and some areas also benefit from specific exemptions.
Declaration and payment deadlines
A newly created business must file an initial declaration (form 1447-C-SD) before 31 December of its year of creation.
The tax notice is not sent by post: it is published in your professional space on the French tax website, and payment is due by 15 December each year, online.
Why your registered office address matters
Because the CFE is set by the commune, your domiciliation address directly affects how much you pay each year. Before choosing an address, it is worth comparing the minimum contribution of the communes you are considering.
Koulier offers an address in Paris 8th arrondissement and another in Normandy. Use our CFE calculator to estimate what you would pay in each of them.
Estimate your CFE before choosing an address
Compare what you would pay with a registered office in Paris or in Normandy.
Open the CFE calculatorFrequently asked questions
Do I pay CFE in my first year?
No. A business is exempt from CFE for the calendar year of its creation, and its base is halved the following year.
Does a domiciled company pay CFE?
Yes. A domiciled company usually pays the minimum contribution set by the commune of its domiciliation address.
When is the CFE due?
Payment is due by 15 December each year. The tax notice is available online in your professional space on the French tax website.
Is there a CFE exemption for small businesses?
Businesses with a turnover of 5,000 euros or less are exempt from the minimum contribution.