If you’re living in France, or planning to move soon, there are several important changes coming into effect in 2025 that could impact your finances, utility bills, taxes, and family budget. From new electricity billing rules to revised savings interest rates, this year brings a host of adjustments worth knowing about.
Here’s what’s changing in France in August 2025, including updates on TVA, Linky meters, school allowances, and more.
Electricity Bills and TVA: What’s New?
Starting 1 August 2025, France is harmonising its electricity TVA (value-added tax) rates with European law. This update affects how your electricity bill is calculated, particularly for those on regulated tariffs.
The Commission de Régulation de l'Énergie announced that this change is intended to stabilise electricity prices, making bills more predictable for households. If you’re living in France and want to better understand how these changes could affect your utility costs, check your latest statement or consult your provider for a breakdown of adjustments.
Extra Charges for Homes Without a Linky Meter
Still haven’t installed a Linky smart meter? You might want to reconsider.
From August 2025, households without a Linky meter will face additional electricity charges:
- 6.48 € (excl. tax) every two months for the management of older meters
- 4.14 € (excl. tax) if you haven’t submitted your consumption data in over a year
These charges aim to encourage the shift to smart metering, which streamlines energy tracking and billing.
💡 Pro tip: If you're unsure about your meter type, contact Enedis or check your latest energy bill.
Savings Accounts: Interest Rates Drop
Bad news for savers: as of 1 August 2025, the interest rates for two of France’s most popular regulated savings products, the Livret A and LEP (Livret d’Épargne Populaire), are going down.
- Livret A: Dropping from 2.4% to 1.7%
- LEP: Decreasing from 3.5% to 2.7%
These cuts are based on economic recommendations from the Banque de France and reflect lower inflation and interbank rates in the Eurozone.
Other savings product rates from August 2025:
- LDDS (Sustainable Development and Solidarity Account): 1.7%
- Livret Jeune: 1.25%
- CEL (Home Savings Account): 1.25%
👉 These changes may encourage savers to explore alternative investments, especially those moving to France with financial planning in mind.
Borrowing and Mortgage Rates: Lower Usury Rate
Planning to buy property in France? The French real estate market in 2025 comes with changes to borrowing limits that could impact your mortgage strategy.
As of 1 July 2025, the usury rate (legal maximum interest rate on loans) for fixed-rate property loans of 20 years or more has been reduced to 5.08% (down from 5.31%).
What is the usury rate? It’s the highest effective annual interest rate (TAEG) banks can legally offer. This rate includes:
- The nominal interest rate
- Application fees
- Broker or intermediary charges
- Mandatory insurance and guarantees
If the TAEG exceeds the usury rate, the loan is considered usurious and cannot legally be issued.
Living in France long-term? This measure protects you as a borrower, ensuring access to fair credit conditions.
2025 Tax Corrections & Payment Deadlines
If you’ve already filed your 2025 French income tax return, you’ll now have the opportunity to make corrections online. Whether it’s a forgotten deduction or an incorrect figure, the online portal offers a second chance to set things right.
Additionally, keep an eye on your 2025 tax balance:
- You may receive a refund if you overpaid
- Or a bill if you owe more tax than was withheld
The online tax correction service is typically available from mid-August, and deadlines for final payments will be announced by the Direction Générale des Finances Publiques (DGFiP).
✅ What These Changes Mean for Expats in France
Whether you’re newly arrived or have been living in France for years, these August 2025 changes are important to know. Here's how they could affect your life:
- Electricity Bills: Upgrade to a Linky meter and review your provider's billing updates.
- Savings Strategy: Consider diversifying beyond Livret A and LEP, especially with rate drops.
- Homeownership: Lower usury rates may benefit buyers entering the French real estate market.
- Tax Planning: Use the correction window wisely and monitor your tax balance closely.
Staying Ahead of the Changes in France
From shifting financial regulations to energy updates and school support, 2025 brings a variety of changes in France that affect both locals and expats alike. Staying informed means fewer surprises, and more confidence in managing your life here.
📝 Need guidance with French visas, residency, or bureaucracy? Visit Fab Expat for expert support designed specifically for expats living in France.