Pleasure Boats: Movable Property, Therefore Not Taxable?

In French law, pleasure boats are legally considered movable property. They are therefore treated as vehicles or collectibles, and not as real estate. This classification has a direct impact on taxation: they are not included in the base for the real estate wealth tax (IFI). Consequently, unless there are special cases, they should not appear on your annual income tax return.

However, be aware that this does not mean that a boat completely escapes taxation. As is often the case, exceptions exist, and they can have a significant financial impact.

Exceptions to Know

1. The boat used as a primary residence

If your boat is permanently moored and you live there year-round, it can be treated as a dwelling, which completely changes its status in the eyes of the administration. In this case, property tax and/or residence tax may apply. This assessment is based on several criteria: mooring duration, connection to networks (water, electricity), comfort equipment, etc. It is a case-by-case examination, but the trend is towards increased monitoring of these hybrid uses, especially in areas where housing is scarce.

2. The boat under a foreign flag

Owning a boat flying a foreign flag while being a tax resident in France does not exempt you from all taxes. In this case, you are subject to the annual passport fee, equivalent to the francization tax applied to ships registered in France. This system aims to prevent French residents from circumventing national taxation by registering their boat abroad, particularly in certain floating tax havens.

3. Commercial or rental use

Although not mentioned in most standard documents, it is worth noting that renting out your boat – even occasionally – can generate taxable income. In this case, the income received must be declared as industrial and commercial profits (BIC). And if you entrust your boat to a management company, specific obligations apply.

TAEMUP: An Unavoidable Annual Tax

Even if you are exempt from mentioning your boat in your income tax return, you will not avoid the TAEMUP (annual tax on personal watercraft), formerly DAFN. This tax is mandatory for pleasure craft, and its amount varies depending on:

• The length of the boat (from 7 meters),
• The engine power (from 22 hp for units under 7 meters),
• Or even for certain powerful jet skis (from 90 kW).

Payment of the TAEMUP is made each year on the demarches-plaisance.gouv.fr website, and failure to pay may result in administrative penalties.

The taxation applicable to pleasure boats may seem light at first glance, but it should not be neglected. Obligations can vary considerably depending on the actual use of your boat, its flag, or its registration. Ignoring these subtleties can expose you to tax assessments, adjustments, or even penalties.

For any complex or particular situation, it is best to contact your tax office or consult the official resources available on the maritime administration portal. Because on the water as on land, it is better to prevent than to undergo an unforeseen tax audit.

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