Every November, French businesses get an email from the tax office, Finances Publiques, inviting them to go and pay something called the CFE. If you've never heard of it, you might wonder whether it's a scam, whether you really have to pay it, and how to go about it.
It's not a scam, and yes, almost every business pays it. In this article I explain what the CFE is, who pays it, the exemptions, how much it costs, and what to do this week, whether you've just set up your business or you've been trading for a while.
Prefer to watch? Watch the video version on my YouTube channel.
What is the CFE?
The CFE, cotisation foncière des entreprises, is a local business tax. You pay it to the local authority where your business is based, and it goes into their budget to fund local services and investment.
It's calculated from the rental value of your business premises. If you have no premises, or they're small, you pay a minimum amount that depends on your town and your turnover. That's why you still pay a CFE even if you work from home.
Who pays the CFE?
All French businesses pay the CFE, whatever their status:
- micro-entrepreneurs and entreprises individuelles
- companies such as a SARL, SAS, SASU or EARL
- some SCIs (property companies), depending on how the property is used
A word of warning about business addresses. If you use a domiciliation service (a business address or PO box), you still pay a CFE, based on that address.
Exemptions: who doesn't pay?
A few activities are exempt, but they're quite specific and fairly rare: for example artists, painters and authors paid through copyright, some farming activities, and some SCIs where no rent is charged. Check the details carefully if you think one applies to you.
For most of my readers, two exemptions matter.
1. Your first year in business
You don't pay any CFE for the calendar year in which you start your business. If you started any time between 1 January and 31 December 2026, you have nothing to pay for 2026.
For example, if you set up in September 2026, your first CFE bill arrives at the end of 2027. In that second year, your tax base is reduced by 50%, so the first bill is lighter too.
2. Turnover of €5,000 or less
If your turnover (excluding VAT) is €5,000 or less, you're exempt from the CFE.
Be careful with the year: the CFE uses your turnover from two years ago. The 2026 CFE is based on your 2024 turnover. If your business didn't exist yet, the tax office works it out from your first year's turnover, adjusted to a full year.
When do you pay the CFE?
- November: you get an email from Finances Publiques telling you your CFE bill (avis d'impôt) is ready. Nothing comes by post: it's all online, in your business account on impots.gouv.fr.
- Before 15 December: you log in, check the bill and pay it.
If you'd rather not think about it every year, you can sign up for monthly direct debit (before 30 June for the following year) or a direct debit on the due date (before 30 November).
How much does the CFE cost?
The CFE is a bit complex to calculate because it combines two things:
- a rate, set by your town (or group of towns), and
- a base: the rental value of your premises or, if you work from home, a minimum base that depends on your town and your turnover.
Your CFE is roughly base × rate, plus a few small additional charges.
CFE rates in towns popular with expats
Here are the 2026 rates in the towns where many of my clients are based. Don't panic: this is not a percentage of your turnover. It's applied to your CFE base, which is much smaller.
CFE rates in 2026 in a selection of French towns
The rate is applied to your CFE base (see the minimum base table) to work out what you pay. Paris has one of the lowest rates in France.
Sources: La Micro by Flo (2026 rates, October 2026). *Chamonix: rate voted by the Communauté de communes de la Vallée de Chamonix-Mont-Blanc, unchanged at 29.33% for several years (latest confirmed figure 2025).
Rates go from 16.52% in Paris, one of the lowest in France, to 36.58% in Montpellier. They can also change from one year to the next, which is why your CFE can go up slightly even if your business stays the same.
The minimum CFE base
This table is the more useful one if you work from home. It shows the range each town can choose from for the minimum base, according to your turnover from two years ago (excluding VAT).
Minimum CFE base in 2026, by turnover
Source: Service-Public.fr, updated April 2026. The same scale applies whether or not you have business premises. Turnover is the figure for year N-2 (2024 for the 2026 CFE).
For example, if your town has set a minimum base of €600 and a rate of 30%, your CFE would be around €180, plus the small additional charges.
Don't worry too much about the top brackets. They mostly affect businesses with large premises, such as a friend of mine who runs a paintball centre. If you work from home, you'll usually be near the bottom of the scale.
To give you a real example: I work from home near Caen in Normandy, with no premises, and my CFE bill this year is €229, just €4 more than last year. It's not a huge cost.
Should you register your business in Paris to pay less?
You might be tempted to use a Paris business address because the rate is lower. I wouldn't recommend it. It complicates your admin, especially your health cover, which is linked to your local CPAM. Keep your business where you live. The saving is small and not worth the hassle.
What to do if you're a new business
You have no CFE to pay this year, but you still have two jobs to do before 31 December.
Step 1: create your business impots.gouv account
You probably know impots.gouv.fr as the place where you declare your personal income tax. The site has two sides: one for you as an individual (Particulier) and one for your business (Professionnel). When you registered your business, Finances Publiques sent you a welcome letter inviting you to create the business account.
It's a two-step process:
- Start creating the account with your SIREN or SIRET number, your address and your email. You'll get an email to confirm it.
- Wait for an activation code to arrive by post. It's valid for 60 days. When it arrives, finish setting up the account: add your personal details and a business bank account, so you can pay your taxes from it.
You'll use this account for your CFE, to send questions to the tax office through the secure messaging service, and, if you ever become VAT registered, to file your VAT returns.
Step 2: complete form 1447-C-SD
When you registered your business, you probably received a scary-looking four-page form: the 1447-C-SD. Don't worry, running a French business isn't like this every day! The form simply gives the tax office what it needs to calculate your future CFE.
If you haven't dealt with it yet, fill it in and send it to your business tax office (SIE) before 31 December. I recommend sending it through the secure messaging in your business impots.gouv account, so it doesn't get lost.
You also need to tell the tax office if you move your business to another town and get a new SIRET. For example, if you move from Lyon to Bordeaux, you need to send a new form so your CFE is recalculated for the new town.
New micro-entrepreneur? Let me show you how, step by step
In my course Manage Your Micro-Entrepreneur you'll find how-to videos showing you how to create and activate your business impots.gouv account, fill in your CFE form and send it to the tax office, plus everything else you need to do in your first 12 months. You also get monthly group calls and a private WhatsApp group to swap tips with other members.
What to do if your business is already trading
It's time to log in to your business impots.gouv account. If you haven't created it yet, follow the steps above.
- Log in to your Espace professionnel. The interface has just been redesigned and looks neater, at least on the first screens.
- Open the CFE section and look for cotisation foncière des entreprises. There's one bill per year. Click on it to see the amount.
- Validate the bill.
- Then click Payer to authorise the payment from the bank account linked to your impots.gouv account.
Make sure you do both steps. If you validate the bill but forget to confirm the payment, the money can't be taken from your account and you could be charged a late-payment penalty. The deadline is 15 December.
In summary
- The CFE is a compulsory local tax for all businesses, from micro-entrepreneurs to companies.
- You start paying it in your second calendar year in business, with a 50% reduction that year.
- You're exempt if your turnover from two years ago is €5,000 or less.
- If you work from home, the bill is usually modest, often a few hundred euros or less.
- New business: create your business impots.gouv account and send form 1447-C-SD before 31 December.
- Existing business: log in, check your bill, validate it, then confirm the payment before 15 December.
- Moved town? Send a new CFE form so the tax office can recalculate your CFE.
Got a question about your own situation? Book a Power Hour with me, and we'll go through it together in English.
Sources: Service-Public.fr (updated April 2026), La Micro by Flo (2026 rates). Figures checked in November 2026.
