Tax update: Annual 3% tax on the fair market value of real estate
Annual 3% tax return: what you need to do before May 15, 2026
Please note that the annual filing deadline for the 3% tax is May 15, 2026. Compliance with this obligation is the condition for obtaining an exemption — failure to file exposes the entity to effective liability for the tax on the market value of its French real estate assets (Article .
All (French and foreign) legal entities holding real estate in France are subject to a 3% tax on the market value of such real estate, subject to the application of various exemptions.
Exemption from this tax is available on the basis of an annual declaration including the value and composition of assets held on January 1st of the year. In practice, all entities interposed between the property and its ultimate beneficiary must file a 2746 form before May 15 with the relevant tax office. Exemption may also be obtained by committed within the acquisition deed to provide such information upon request by the tax authorities.
Penalty: In the absence of a timely filing of Form 2746, the entity loses the benefit of the exemption and becomes liable for the 3% tax on the market value of all real estate held in France as of January 1 of the relevant year
The Squadra tax team is available to assist you in preparing and filling the 2746 form for the year 2026.