TLDR: Mixed-use properties are subject to distinct tax rules depending on their use. The habitation tax applies only if the property is part of the taxpayer's personal residence. For the TFPB (property tax on built properties), only the residential part may qualify for exemptions. The reduced VAT rate (10%) applies to the entire property if at least 50% of the floor area is used for residential purposes. The cadastral rental value and tax benefits (Scellier, Robien, CITE) require a proportional allocation of floor areas.
Habitation Tax
Mixed-use properties are subject to the habitation tax only if they are part of the taxpayer's personal residence. Conversely, if they are subject to the professional tax and are not part of the personal residence, they are excluded.
Mixed-use garages (professional and personal) are exempt from the habitation tax if the personal use is incidental.
Property Tax on Built Properties (TFPB)
Only the part of the property used for residential purposes may qualify for a TFPB exemption, provided it is intended for housing and used for personal or family purposes. Outbuildings (cellars, garages, etc.) are included in this exemption if they are linked to the residential part.
Cadastral Rental Value
For a mixed-use property, the cadastral rental value must be determined separately for the residential and professional parts. Rooms with mixed use (e.g., a living room used as an office) are considered professional.
The allocation of the rental value between residential and professional use also applies to mixed-use properties, with a deduction of the rental value for rooms used exclusively for professional or mixed purposes.
VAT on Works
The reduced VAT rate (10%) applies to all renovation, improvement, or maintenance work on a mixed-use property if at least 50% of the total floor area is used for residential purposes. This rule applies to properties completed more than two years ago.
Specific Tax Benefits
For the Tax Credit for Energy Transition (CITE), expenses incurred in a mixed-use property are only considered for the portion corresponding to the floor area used for residential purposes. The allocation is made proportionally based on floor areas.
Under the Scellier or Robien schemes, a mixed-use property can benefit from the tax advantage only if at least 75% of its total floor area is used for residential purposes. The allocation of floor areas must be justified by an annex note.
Valuation Rules for Rental Value
A mixed-use element is assessed:
- according to the rules applicable to commercial properties, if it is used for both commercial or artisan activities and another purpose;
- according to the rules for professional properties, if it is used indistinctly for professional and residential purposes.