French Tax On Rental Income
File a French Tax Return Online
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
If you are earning income from a property overseas, it is likely that you will have to file a tax return. This fee covers a review of your property-related documents and the initial set up of your tax filing with our tax professionals. We will review all your documents and help you file your tax return easily online.
Rental Income Tax Return – 420€
This is a complete service, covering the necessary tax returns for your French furnished, non-furnished or leaseback property (single or married – 1 property). A detailed review of all supporting documents is required. PTI will help you file your personal income tax return easily online.
Micro Personal Income Tax Returns – €260
This is a more affordable option for furnished and unfurnished lettings instead of the Personal Income tax return option above. If you choose this option, a notional percentage deduction will be taken instead of the actual expenses incurred. This option is usually beneficial for individuals if there is no mortgage taken out and the rental expenses incurred are at a low level.
NIL Business tax return – 220€
This return is obligatory for leaseback lettings if no rental income was received. On occasion, it may also be required for furnished lettings upon request from the tax office (again if no income was received). Note, no personal income tax return is required to be filed in this instance. If you are required to file a French NIL business tax return, PTI will help you to easily file these documents.
Start/Cease of activity – €150
This is a once-off declaration that is required when a property owner with a French furnished property either starts renting it out for the first time or ceases to rent the property. For additional information, you can also contact a member of our international tax team.
Property purchase VAT refunds – 6% of refund amount (€150 paid upfront)
Purchased a new leaseback rental property in France? You may be due a significant VAT (value-added tax) refund. We will manage your VAT refund application from start-to-finish and ensure that you receive your maximum refund from the French authorities. VAT refund service – 6% of refund amount (€150 paid upfront and balance on receipt of refund).
French SCI rental income return – price on request
Many people purchase properties in France through an SCI which is a special type of French company. If this is the case, a separate SCI return should be filed. The fee for the preparation of such a return will be quoted on request as it will vary based on the property type. PTI can help you file your French SCI rental income tax return easily online. For additional information, you can also contact a member of our tax filing team.
French NIL SCI returns – €182
This fee will apply for cases where no rental income was received. A NIL return must be filed unless it was reported to the French tax office upon company registration that there were no plans to rent the property out. If you are required to file a French NIL SCI return, PTI will help you to easily file these documents.
French Exemption declaration – €50
This annual declaration is required by French SCI and non-French companies based in the EU that own French properties, in order to avoid 3% tax on the property value. If you have additional questions, you can also contact a member of our international tax team, and check how PTI can help you with your French exemption declaration.
Additional property – €195
This fee is due for the second and each subsequent property (this fee applies in addition to the fees outlined in the two points above, and regardless of whether the property is furnished, unfurnished or a leaseback property). If you have additional questions, you can also contact a member of our team, and check how PTI can help you.
Additional owner – 99€
This fee is due where there are multiple owners of a property, if the owners are not a married couple. This charge covers the preparation of the additional personal return due. This fee applies in addition to the fees outlined in the two points above, regardless of whether the property is a furnished, unfurnished or leaseback property. If you have more questions regarding French property tax returns, you can also contact a member of our international team, and check how PTI can help you.
CFE refund service – €99
Cotisation foncière des entreprises (CFE) is an annual tax which is paid by the owners of furnished properties, based on the theoretical rental value of their property. The tax typically amounts to between €100 – €1,500. PTI will check if you are paying too much CFE on your French property, and help you claim your refund from the tax authorities.
Documents retrieval fee – €50
This fee will apply if you require PTI to obtain some documents on your behalf, excluding bank and mortgage statements. If you have additional questions regarding tax documents retrieval, you can also contact a member of our team, and check how PTI can help you.
Assistance with tax audit – starts at €99
Tax audit assistance pricing is determined by case complexity. For more details, reach out to a member of our international tax team.
Administrative fee – €30
This fee is obligatory and due for each year of submission. It covers postage, phone calls, photocopying etc.
Assistance with tax payments – €30
Our team will help you transfer your tax liability to the local tax office. For additional information, you can also contact a member of our team.
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:
- All fees are inclusive of VAT.
- Prices are based on the provision of information in pre-agreed format – a surcharge of 20% may be applied for disorganized files.
- 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
When you apply through this contact form:
- A French tax specialist will contact you
- After specifying with you the services you need and the tax documents required, you will receive information regarding our final fees
- 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
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.
Property Tax France
When you own a property in France, there are two primary taxes you should be mindful of:
- Land Tax (Taxe Foncière): This tax pertains to the ownership of land and property.
- 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.
- 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.
- 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.
- 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
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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.
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.
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FAQs
As a non-resident in France do I need to file a French tax return?
If you have a source of French income, like for example rental income from a property, you must submit a tax return to the French Tax Office. The type of tax return you submit will depend on the type of property you own.
Do I need a tax identification number?
You will require a Tax ID number in order to file your French Tax Return, even if you are non-resident.
What is the French Leaseback Property Scheme?
The French Leaseback property scheme was created by the French government to encourage investment and development in tourist regions throughout France. Property bought through a leaseback scheme involves a contract between the investor and a property management company that will manage and rent the property for a fix period. The main characteristics of a leaseback scheme are that the property must serve as a holiday accommodation for a minimum period. Where a French VAT is charged on the purchase price of the property it can be claimed back once the required conditions have been met.
I have a French leaseback property, what are my French tax obligations?
As a non-resident French leaseback property owner you are obliged to file a French business tax return and a French personal tax return. Under the French leaseback scheme rental income incurs French VAT at a rate of 10% (since 2014 tax year) which means that a French VAT return also must be filed as VAT is charged on rents received. A new VAT regulation (since October 2012) states that non-residents do not have to pay and receive VAT on top of rents. The responsibility in respect of this lies with the management company.
I received rent from my French unfurnished property. What are my French tax obligations?
As a non-resident French unfurnished property owner you are obliged to file a French personal tax return. Income from land or unfurnished buildings is taxed on income received less allowable expenses. Non-resident French unfurnished property owners can benefit from a simplified scheme called Micro-Foncier. This method of taxation allows a notional deduction of 30% against your rental income when arriving at your French taxable income. Alternatively, you can opt out of this regime and file your French income tax on an actual receipts/costs basis.
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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 |
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