French CFE Business Property Tax Declaration — Form 1447-C-SD

Any business or individual carrying out a non-salaried professional activity on a habitual basis must file this form in the year the activity is created or taken over. This includes sole traders, freelancers, and companies. The form goes to the SIE (Service des Impôts des Entreprises — the business tax office) with jurisdiction over the establishment's address. Note that the filing obligation is distinct from the payment obligation: certain micro-entrepreneurs with very low annual revenue may qualify for a CFE payment exemption, but the initial 1447-C-SD filing remains required to establish your tax position.

The 1447-C-SD must be filed no later than 31 December of the year in which the activity is created or taken over — that is, before 1 January of the following year. For a business created at any point during 2026, the deadline is 31 December 2026. Filing late can result in the SIE estimating the taxable base ex officio (taxation d'office), which typically produces a higher assessment and may trigger late-filing penalties.

Yes. The year a business is created, it is automatically exempt from CFE. Furthermore, in the first year of actual assessment (the year after creation), the taxable base is reduced by 50%. From the second year of assessment onwards, the full communal rate applies. Note that a minimum flat-rate contribution (cotisation minimum), set by each municipality according to your annual turnover bracket, applies once the exemption period ends — even if you have no dedicated taxable premises.

Form 1447-C-SD is the initial declaration, filed only once — in the year your activity begins or when you take over an existing business. Form 1447-M-SD (the declarative amendment form) is filed in subsequent years only when something changes: the surface area of premises, the addition or removal of taxable assets, or a new claim for an exemption (for example, relocating to an enterprise zone). If nothing has changed since your last filing, you do not need to submit 1447-M-SD.

The CFE is calculated by multiplying the taxable base (valeur locative cadastrale — the notional rental value of your premises as assessed by the land register) by the rate set annually by your local authority (commune or intercommunalité). Each commune also sets a minimum taxable base, banded by annual turnover, within nationally defined brackets; if your premises yield a valeur locative below that minimum base, the minimum applies. Because both the rate and the minimum base vary by commune and are indexed annually, the effective CFE burden differs considerably by location.

Yes. Under article 1467 of the Code général des impôts (CGI), the CFE is assessed on the notional rental value of any space used professionally, including a home office. If no taxable rental value can be established, the commune applies a minimum flat-rate cotisation based on your annual turnover bracket. You must still file 1447-C-SD, indicating your home address as the establishment address and the approximate surface area used for professional purposes.