Photo par Philip Taylor PT via Flickr (CC BY 2.0)In brief:
- The CFE is owed by nearly all businesses and self-employed people operating in France as of January 1st.
- Its amount depends on the rental value of the property used for the business.
- An exemption is possible in the year of creation and sometimes the following year depending on the municipality.
- Payment is made online, generally before mid-December.
What the CFE is
The cotisation foncière des entreprises (CFE) is one of the two components of the territorial economic contribution, alongside the value-added contribution (CVAE). It is owed by any individual or legal entity carrying out a non-salaried professional activity in France on January 1st.
Who is exempt
Some activities benefit from a total or partial exemption: auto-entrepreneurs under very low revenue conditions in some cases, sole-working craftspeople, or new businesses in their first year of operation.
How the CFE is calculated
| Situation | Calculation basis |
|---|---|
| Business with professional premises | Rental value of property subject to property tax |
| Business without dedicated premises | Minimum base set by the municipality |
| Business created during the year | Exemption in the first year |
The payment calendar
“The CFE is in principle payable before mid-December, with an installment due in June for businesses whose previous year’s contribution exceeded a certain threshold.” — impots.gouv.fr, 2026
How to plan ahead for the CFE
- Check the CFE notice as soon as it is available in the professional account on impots.gouv.fr
- Provision the amount in the business’s cash flow tracking
- Request an exemption or a tax relief if the business meets the conditions, notably a recently created legal structure
The CFE is part of a broader set of tax obligations covered in the guide on mandatory e-invoicing, and can also concern certain regulated professions and chartered accountants who advise on these deadlines.
Frequently asked questions
Who has to pay the CFE?
The CFE is owed by most businesses and self-employed workers carrying out a non-salaried professional activity in France on January 1st of the tax year, with a few exceptions.
How is the CFE calculated?
The amount is based on the rental value of property subject to property tax and used by the business, with a minimum base set by each municipality for businesses without dedicated premises.
Is there a CFE exemption in the first year?
Yes, an automatic exemption applies in the year the business is created, and some municipalities provide a reduction or partial exemption the following year under certain conditions.