What tax do you pay on rental income in France?

Rental income from residential property in France is subject to French property tax (income tax in France), regardless of whether the owner is resident in France or not. Owners of rental properties, who receive rental income, are obliged to file a French property tax return to the tax office each year.

Income tax in France is levied on any income arising in France. They should also file a tax return in their home country and declare this revenue.

For non-resident individuals, French income tax is payable at progressive rates on income after allowable deductions for expenses incurred in connection with letting or maintaining the property. Furnished, unfurnished, and leaseback properties have different tax obligations in France.

Our tax advisors can help you file a French tax return online. 

French tax on rental income for non-residents

If you are a non-resident in France, your rental income will be taxed at 20% for revenue up to a threshold of €27,519 (2023 ).

Any rental income above this amount will be taxed at a rate of 30%. These rates apply to the net rental income after the deduction of eligible costs or the standard allowance.

French Tax Return Deadline

The tax year in France is usually the calendar year, running from 1st January to 31st December.

Business Income & VAT Returns for Leaseback & Furnished Lettings Deadline: 3rd May (the year after income was received). When the tax year does not coincide with the calendar year, the filing deadline is 3 months after the tax year end.

French Tax Return (personal income) and Micro-Regimes (Micro-BIC & Micro-Foncier) and Non-furnished income tax returns Deadline: Mid of May.

Exact dates are appointed by the tax authorities and they tend to vary slightly from year to year.

french property tax return

Property Tax France

When you own a property in France, there are two primary taxes you should be mindful of:

  1. Land Tax (Taxe Foncière): This tax pertains to the ownership of land and property.
  2. Housing or Residence Tax (Taxe d’Habitation): This tax is related to the use of the property as a residence.

Understanding and budgeting for these taxes is crucial when owning property in France.

Additionally, there is another tax called Cotisation Foncière des Entreprises (CFE) or Business Property Tax, which we will outline.

We can also assist you in applying for a CFE refund if applicable.

Furthermore, it’s essential to be aware of the waste collection tax, which is yet another tax that applies to property ownership in France.

  1. Taxe Foncière – generally payable by the owner of the property (although it can be arranged to be paid by occupant/tenant). It includes the tax on land/buildings. 
  2. Taxe d’Habitation – payable by the occupant/tenant of the property if rented on a long-term (1-year) lease. Otherwise paid by the owner. 
  3. Contribution Foncière des Enterprises (CFE) tax – Every year, owners of furnished properties in France are required to pay a tax known as CFE. This tax is based on the theoretical rental value of a property and typically amounts to between €100 – €1,500. The good news is that many property owners pay too much CFE and are entitled to a CFE refund and our tax advisors can help you with this.

Exactly how much CFE you can claim back will depend on the amount of income and expenses you had in the relevant tax year.

Our tax professionals will check if you are paying too much tax on your French property and help you claim your CFE refund from the tax authorities.

French Capital Gains Tax (French CGT)

Capital Gains Tax in France is payable on the sale of a property. The rate of French CGT applied is dependent on the individual’s residency status.

The tax is payable on the profit on disposal i.e. the difference between the sale price and the original purchase price.

If you’re not residing in France, you’ll be subject to a basic tax rate of 19% French CGT along with 17.2% social charges, resulting in a total charge of 36.2%. However, non-residents from the EEA enjoy a lower rate, as they are exempt from the social charges and only need to pay the solidarity tax of 7.5%.

Furthermore, in 2022, the French government confirmed that UK non-residents would also be eligible for exemption from the social charges, instead of having to pay the solidarity tax of 7.5%.

The tax is applied at the sale in the office of the notary.

French property tax for UK residents and Irish residents

When renting out a French property as a UK resident or Irish resident, you will have the obligation to file two income tax returns to report any income received – one in France, and one in your home country. But don’t worry! You won’t be taxed twice.

There are double taxation agreements between France and Ireland and France and the UK so relief from double taxation is usually available.

Your dedicated tax advisors can provide further details on double taxation relief and/or they can file a French tax return online.

The information provided here is intended as a guide only.

Read more:
Property Tax in France – The Ultimate Guide for Non-Residents Owning Property

french property tax return service

See our Property Tax Solutions

Tax Services for France

French Tax Return for non-residents – Filing French Tax Return online

Our French tax return service is delivered by our in-house team of tax advisors. We do not outsource any part of the process, ensuring your French property tax return is managed at all times by PTI Returns.

We understand that filing taxes in France can be complicated and involves many different considerations, so we will keep you updated throughout the process. We will deal with the tax paperwork and communicate directly with the French tax office on your behalf.

french tax return services

Property Tax International offers the following French tax return services to non-residents:

  • Preparation and filing of  a French tax return online in respect of rental income from non-furnished property (under the Real or Micro-Foncier regime)
  • Preparation and filing of a French tax return online in respect of rental income from furnished property (under the Real or Micro-BIC regime)
  • Preparation and filing of a French property tax return in respect of rental income from leaseback property
  • Tax registration and deregistration for Rental Activity
  • Assisting with Tax payments to the French tax offices

We also provide French VAT Refund Services for Foreign investors. Do you need French tax advice for expats? Request a no-obligation consultation with our tax professionals.

Save Time with our Tax Solutions for France

French Property Tax Services

FAQs

  • What is the French Leaseback Property Scheme?
  • I have a French leaseback property, what are my French tax obligations?
  • I have a French-furnished property, what are my French tax obligations?
  • I received rent from my French unfurnished property. What are my French tax obligations?

Save Time with our Tax Solutions for France

French Property Tax Services

Tax Rates in France and  Tax Deadlines

Tax Year
The French tax year runs from 1st January to 31st December.
French Income Tax Rate

In 2024, the country’s tax scale bands are set up progressively, here they are:

  • Up to €10,777: 0% tax rate
  • From €10,778 to €27,478: 11% tax rate
  • From €27,479 to €78,570: 30% tax rate
  • From €78,571 to €168,994: 41% tax rate
  • More than €168,994: 45% tax rate
French Income Tax Deadline
Business Income & VAT Returns for Leaseback & Furnished Lettings Deadline: 3 May (the year after income was received). When the tax year does not coincide with the calendar year, the filing deadline is 3 months after the tax year end.   Personal income tax returns and for Micro-Regimes (Micro-BIC & Micro-Foncier) and Non-furnished income tax returns Deadline: Mid-May.   Exact dates are appointed by the tax authorities and they tend to vary slightly from year to year.
Capital Gains Tax Rate in France
There is no longer a higher rate of capital gains tax for non-residents who live outside the European Economic Area (EEA)*.   If you are a non-resident, the applicable tax rate is the same – 19% Capital Gains Tax, plus 17.2% social charges, and the total charge is 36.2%.   There is a tapered relief against the tax that is granted, starting from the 6th year of ownership.
Dual Tax Agreement with Ireland
Yes
Dual Tax Agreement with the UK
Yes

See our Tax Solutions

Tax Services for France

French Tax Services & Fees

Preparing and filing a French tax return online is our service offered to non-resident landlords in France and other countries. Even if your property has not been let, you may be required to file a French tax return and our property tax professionals can help you with this. We have a range of plans to suit all types of properties – whether furnished or unfurnished etc.

PTI Returns caters for investors and French property owners from all over the world. With unrivaled knowledge of French tax legislation, our property tax advisors will minimize your tax liability by ensuring you avail of every relief you’re entitled to. Save time and stress when filing your property tax return. File your French tax return with PTI Returns.

  • Initial documents review – €150
  • Rental Income Tax Return – 420€
  • Micro Personal Income Tax Returns – €260
  • NIL Business tax return – 220€
  • Start/Cease of activity – €150
  • Property purchase VAT refunds – 6% of refund amount (€150 paid upfront)
  • French SCI rental income return – price on request
  • French NIL SCI returns – €182
  • French Exemption declaration – €50
  • Additional property – €195
  • Additional owner – 99€
  • CFE refund service – €99
  • Documents retrieval fee – €50
  • Administrative fee – €30

Multiple years discount – 10% Available where returns for 2 or more tax years are required. This discount is applicable to the annual fees excluding any once-off fees and administrative fees and does not apply where other discounts/reductions have been granted.
Multiple tax countries discount Clients who avail of our tax-filing services for two (or more) countries can claim a 10% discount on our fees. For example, if you file a Spanish and French property tax return, we will reduce our fee by 10%. This discount does not apply where other discounts/reductions have been granted.

Notes:

  1. All fees are inclusive of VAT.
  2. Prices are based on the provision of information in pre-agreed format – a surcharge of 20% may be applied for disorganized files.
  3. Prices are based on the provision of necessary backup documentation only – the inclusion of unnecessary documentation may result in the application of an additional charge.

Learn more on Property Tax in France – The Ultimate Guide for Non-Residents Owning Property

Request a free callback from a property tax advisor

+353 1 635 3722

When you apply through this contact form:

  1. A French tax specialist will contact you
  2. After specifying with you the services you need and the tax documents required, you will receive information regarding our final fees
  3. Before we can start to work on your French tax return, we will need you to share the necessary property information and tax documents with our French tax team