Building plot tax in France: VAT, duties and levies

What is a building plot for tax purposes?

The definition is objective. Building plots are “all plots on which buildings may be authorised under the documents that define their status with regard to planning rules” (BOFiP, the official tax guidance, BOI-TVA-IMM-10-10-10-20, § 10, commenting on 1° of 2 of I of article 257 of the CGI). The reference documents are the plan local d’urbanisme (PLU, local development plan) or the document taking its place and, in small municipalities that have none, the carte communale (municipal zoning map) (§ 30).

Consequence: the buyer’s intentions and the actual use of the plot have “no bearing” on the classification (§ 10). A buildable plot bought to make a garden is still, for VAT purposes, a building plot.

VAT: private individual or business, everything changes

Private seller. VAT only applies to supplies made “by a taxable person acting as such” (BOFiP, BOI-ENR-DMTOI-10-40, § 20). A private individual selling their plot is not subject to it.

Business seller. Supplies of building plots made by a taxable person acting as such are “taxable as of right” (BOFiP, BOI-TVA-IMM-10-10-10-20, § 1). The rate is generally 20% (impots.gouv.fr, page “Achat d’un immeuble à bâtir”).

Total price or margin: the key question

The principle: the total price. The tax base consists of all the sums received by the seller in return for the sale, excluding VAT (CGI, art. 266 and 267; BOFiP, BOI-TVA-IMM-10-20-10, § 1).

The exception: the margin. For a building plot, the base is “the margin if it is established that the transferor’s acquisition did not give rise to a right to deduct” (CGI, art. 268; BOFiP, § 10). This is the case for a plot acquired from non-taxable persons, for example a private individual (§ 30). Typically: a lotisseur (land developer) buys a field from a private individual, services it and resells plots.

The calculation. The margin is the difference between the price paid by the buyer, less the VAT on the margin itself, and the purchase price borne by the reseller (BOFiP, § 240). The calculation is done “VAT-inclusive” (en dedans):

Taxable margin = (amount paid + additional charges − purchase price) ÷ (1 + rate)

Payotte example (BOFiP formula, 20% rate): a land developer buys a plot for €60,000 from a private individual and resells it to you for €100,000. Taxable margin: 40,000 ÷ 1.20 = €33,333.33. VAT included in the price: €6,666.67. On the total price, it would have been €16,666.67 for the same price including VAT.

Registration duties case by case

The BOFiP (BOI-ENR-DMTOI-10-40, version of 1 June 2016) divides acquisitions of building plots into two regimes:

The reduced rate. Article 1594 F quinquies, A of the CGI subjects to the taxe de publicité foncière (land registration tax) at the rate of 0.70% “transfers for consideration of building plots and new buildings […] where they are subject to value added tax”. The BOFiP specifies that it does not apply where VAT is charged on the margin, that it is conditional on payment of the VAT and that the taxe additionnelle communale (additional municipal tax) is then not collected (§ 90 and 100). Impots.gouv.fr shows an overall rate of 0.71%: that is the 0.70% tax plus the frais d’assiette et de recouvrement (assessment and collection fees) collected by the State (2.14% of the tax, i.e. €15 on €700 of tax in its example). It is this 0.71% total that the buyer pays through the notary.

The standard rate. Its rate is set by article 1594 D of the CGI and may be varied by the départements (BOFiP, § 50), plus an additional municipal tax (§ 60). Impots.gouv.fr gives its maximum overall rate: 6.32% from 1 April 2025 to 31 March 2028, plus the contribution de sécurité immobilière (land registry fee) of 0.1% (€15 minimum).

VAT-registered businesses that undertake to build within four years may benefit from an exemption from proportional duties (CGI, art. 1594-0 G; BOFiP, § 140 et seq.). This regime does not apply to a private individual having their house built.

Development tax, when you build

The taxe d’aménagement is not levied on the purchase of the plot but on the taxable floor area of the authorised building (BOFiP, BOI-IF-TU-10-30-10). In 2026, the flat-rate value per square metre is €892 outside Île-de-France and €1,011 in Île-de-France. A 50% allowance applies in particular to the first hundred square metres of premises used as a main residence (BOFiP, BOI-IF-TU-10-30-20).

The final amount depends on locally voted rates: do the calculation with our guide taxe d’aménagement (development tax).

Which professional to consult

The notaire (notary) determines the applicable VAT and duties regime according to the seller’s situation. The géomètre-expert (chartered land surveyor) marks out the plot’s boundaries. The courtier en crédit (mortgage broker) builds the transfer duties, any VAT and the development tax into the financing plan. For planning checks before signing, see our guide acheter un terrain (buying a plot of land).