How can you reduce your CFE tax?

The Cotisation Foncière des Entreprises (CFE) is a local business tax, part of the Contribution Économique Territoriale (CTE), which includes the CFE and the CVAE (Cotisation sur la Valeur Ajoutée des Entreprises). It is an annual tax, like the Taxe d'Habitation for individuals.

Calculation: Tax base x CFE rate x rental value.
The tax base varies according to your company's sales bracket. The CFE rate is determined by the local authorities. The rental value is indexed to the characteristics of your business premises. Both the tax base and the CFE rate are set by local authorities, so they can vary considerably from one commune to another. The amount of CFE you pay depends on the commune in which your premises and head office are located.

All companies and individuals carrying out a non-salaried professional activity on a regular basis. All forms of business (including micro-businesses) are subject to CFE, except for crafts, agriculture, public authorities, painters, sculptors and certain press activities.

It is possible to be subject to a minimum CFE tax by locating your head office in a commune with a low CFE tax base and rate. This is the case of Paris, which offers one of the lowest rates in France, in order to attract a large number of companies to its territory. What's more, obtaining a head office through a domiciliation company enables you to reduce your rental value to the minimum threshold.