The Business Property Tax

An annual local tax payable by landlords of furnished rentals, with a few exceptions.

Every fall, a notice appears in the tax portal’s business section, surprising property owners who thought they were only dealing with income tax. The business property tax (CFE) is a local tax that is almost always triggered by furnished rentals, even when the rental is conducted on a non-professional basis and managed by a property management service.

This page explains who is required to file this return, what exemptions apply, why the initial filing affects the entire first year, and how to plan for it as soon as you establish your status as a furnished vacation rental owner.

In principle, this applies to any landlord renting out furnished accommodations on a regular basis, including non-professional landlords. The tax is assessed in the municipality where the property is located, not where you live: a furnished vacation rental in Toulon is subject to Toulon’s local taxes, regardless of where you reside.

Entrusting management to a short-term rental concierge service does not shift this responsibility. Loca'Zen performs hands-on services on your behalf, but the rental business remains yours: you are responsible for it.

• The year business operations begin: full exemption, provided that the initial tax return has been filed.
• Renting out part of your personal residence: subject to conditions related to the nature of the rooms being rented and the rent charged.
• Locally established exemptions: Each municipality may establish them, and their scope varies from one jurisdiction to another.

It must be filed in the year you begin your business activities. It is this form—and this form alone—that triggers the first-year exemption. Failing to file it means paying a contribution from which you were exempt: a waste of money, with no easy recourse once the deadline has passed.

For short-term rentals, the rental value used for tax purposes is often modest, so many landlords are subject to the minimum tax rather than a proportional calculation. This minimum threshold explains why a studio apartment and a large apartment might be subject to similar tax amounts.

• It is payable on each property. Registering a second residence triggers a second tax assessment, which is determined by the municipality where the new property is located.
• The minimum contribution applies even if you have no— or almost no—revenue. A season with no revenue does not automatically exempt you from this requirement.
• Check the Toulon tax regime with the business tax office. Local regulations vary and are subject to change.
• Plan ahead for your year-end cash flow. The payment is due once the season is over, when cash inflows have slowed down.

Does this apply to me if I only rent out my property for a few weeks a year?

In principle, yes, provided that the rental is a regular occurrence and not merely occasional. The low volume affects the amount due—due to the minimum tax—but not the principle of the tax itself.

Does the CFE replace the property tax?

No, the two coexist and are cumulative. Property tax is due based on ownership of the property, while the CFE is due based on the business activity conducted there.

What happens if I list a second property with Loca'Zen?

An additional fee is assessed by the municipality where the second residence is located. The rest of the process, which is faster than the first part, is described on page 7.3.

Will Loca'Zen take care of that for me?

No. The concierge service contract expressly excludes tax advice and tax filing procedures, which are your responsibility or that of your accountant. We provide the figures according to the schedule described on page 6.6.

Updated as of July 27, 2026 · Describes the current service agreement. The agreement and its appendices take precedence over this content, which is provided for educational purposes.