Adding a terrace to your property may seem like a simple aesthetic improvement. However, it's essential to understand that this modification can have a significant impact on your local taxes.
BUILDING PERMIT PREREQUISITE
Building a terrace isn't always a simple matter. If your future terrace is raised by more than 60 cm and measures more than 20 m², planning permission is required. Although restrictive, this rule is designed to ensure that construction complies with current standards and preserves the aesthetic appeal of residential areas.
INCREASE IN YOUR LOCAL TAXES
The creation of a terrace can affect the amount of your local taxes. If your terrace "is impossible to move without demolishing it", it is considered a secondary element or outbuilding of your property. This classification increases the cadastral value of your property, and consequently the amount of your property tax.
EXEMPTION AND DEVELOPMENT TAX
Despite these potential increases, there are ways to mitigate the impact of terrace construction on your taxes. A declaration to the property tax office within 90 days of completion of the work may allow you to be exempted from calculating your property tax for two years. What's more, uncovered terraces and certain structures such as pergolas that open onto the outside are exempt from development tax.
Building a terrace is a project that can add value to your property. However, it's essential to take into account its impact on your local taxes to avoid unpleasant surprises. Don't forget that tax exemptions are available, and that professional assistance can help you optimize your project while respecting legal obligations.
