French rental income tax-filing simplified for non-resident landlords

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.

This is a complete service, covering the necessary tax returns for your French furnished, non-furnished or leaseback property (single or married – one property). A detailed review of all supporting documents is required. Property Tax International will help you file your personal income tax return easily online.

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.

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, Property Tax International will help you to easily file these documents.

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.

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).

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. Property Tax International 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.

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, Property Tax International will help you to easily file these documents.

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 Property Tax International can help you with your French exemption declaration.

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 Property Tax International can help you.

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 Property Tax International can help you.

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. Property Tax International will check if you are paying too much CFE on your French property, and help you claim your refund from the tax authorities.

This fee will apply if you require Property Tax International 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 Property Tax International can help you.

Tax audit assistance pricing is determined by case complexity. For more details, reach out to a member of our international tax team.

This fee is obligatory and due for each year of submission. It covers postage, phone calls, photocopying etc.

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.

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.

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.

You will require a Tax ID number in order to file your French Tax Return, even if you are non-resident.

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.

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.

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.

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 tax year – The French tax year runs from 1 January to 31 December.

Business Income & VAT Returns for Leaseback & Furnished Lettings – The deadline to file is 3 May (the year after income was received).

Personal income tax returns and for Micro-Regimes (Micro-BIC & Micro-Foncier) and Non-furnished income tax returns – The deadline to file is mid-May. Exact dates are appointed by the tax authorities and they tend to vary slightly from year to year.

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.

You won’t be taxed twice, as there are double taxation agreements between France and Ireland and France and the UK so relief from double taxation is usually available.

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

If you earn rental income from a French property as a non-resident, you are required to file a French tax return each year.

Failing to file your French tax return can lead to:

• Late filing surcharges and interest on unpaid tax
• Loss of deductions or allowances for property expenses
• Delays and complications when selling your property

With that in mind, it’s very important to file your French return before the tax deadline

Yes.

Whether your French property is furnished or unfurnished, you can prepare every tax document you need with PTI Returns.

Yes.
Every year we support thousands of individuals who own multiple properties, both in France and around the world.

The PTI Returns team will help you to correctly declare all relevant information for each of your properties, ensuring you remain fully tax compliant in France.

Your French tax responsibilities can differ depending on a variety of factors, including whether or not the property is furnished and the amount of income earned.

The Régime Réel method of taxation is beneficial in many cases, particularly for new buyers. Here, you can deduct actual costs (including notary fees, interest, repairs, and depreciation), significantly reducing tax. This method offers significant savings, but is complex to avail of.

Meanwhile, Micro-BIC is the most straightforward method to choose. This option is ideal for long-term property owners or those with lower expenses. With Micro-BIC, simply report your annual income and you will be entitled to a 50% deduction (30% for owners of short-term/Airbnb lettings). For long term and classified lettings, your rental income must be less than €77,000 in order to qualify. Meanwhile, for short term rentals, your income must be below €15,000.

No!

Furnished and unfurnished rental properties in France are subject to different tax regimes.

If your annual rental income is less than €15,000, you can choose between two tax regimes:

Micro-Foncier Regime

Under this method, you declare your total rental income, and the tax authorities automatically apply a 30% flat-rate deduction to cover expenses. You are then taxed on the remaining 70% of your income.

Régime Réel 
Meanwhile, if your rental income exceeds €15,000, you are required to use Régime Réel.
Under this regime, there is no flat-rate deduction. Instead, you can deduct actual expenses, including mortgage interest, management fees, maintenance, insurance and administrative costs.