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

Income tax is levied on any income arising in France. For non-resident individuals, 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.

French Tax Deadlines

The tax year in France is usually the calendar year, running from 1st January to 31st December. However, a different tax year applies for the following:

  • Corporate Income & VAT Returns for Leaseback & Furnished Lettings Deadline: 30th April (the year after income was received). When the tax year does not coincide with the calendar year, the filing deadline is 3 months after tax year end.
  • Personal income tax returns and for Micro-Regimes (Micro-BIC & Micro-Foncier) and Non-furnished income tax returns Deadline: Mid of May – mid of June.

Exact dates are appointed by the tax authorities and they tend to vary slightly from year to year. The deadline for the 2019 tax year is 14th of May 2020 if the tax return is filed by paper and 19th of May 2020 if the tax return is filed online.

french property tax return

Local Property Tax

Local property taxes apply in France. These are based on the value of the property and vary per region.

1. Taxe Fonciere – generally payable by the owner of the property (although it can be arranged to be paid by occupant/tenant). It includes 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 Fonciere des Enterprises (CFE) tax – a local business tax charged on the rental value of the property and chargeable to leaseback and furnished lettings. It is payable to the municipality where the property is located.

French Capital Gains Tax

French Capital Gains Tax (CGT) is payable on the sale of a property. The rate of CGT applied in France 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 original purchase price. Supplementary tax may be added to the CGT liability based on the level of the gain. The tax is applied at the sale in the office of the notary.

UK or Irish Residents

If you are resident in the UK or Ireland you will have to report any income received in France on your annual resident tax return (i.e. your Irish or UK tax return). There are double taxation agreements between France and Ireland and France and the UK so relief from double taxation is usually available. Your PTI account manager can provide further details on double taxation relief and/or filing your resident tax return.

The information provided here is intended as a guide only. While Property Tax International makes every effort to ensure that the information contained herein is accurate, we take no responsibility or liability for any inaccurate, delayed or incomplete information, nor for any actions taken in reliance thereon.

french property tax return service

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Our French Tax Return Service

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

We understand that the French tax return process can be complicated and involves many different considerations so we will keep you updated throughout the process 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:

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

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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 rents from my French unfurnished property. What are my French tax obligations?

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Tax Rates and Deadlines

Tax Year
The French tax year runs from 1st January to 31st December.
Income Tax Rate
Progressive rate with minimum 20%; as from 2015 tax year the taxable gain is also subject to social charges.
Income Tax Deadline
30 April – Leaseback, Furnished Lettings, Corporate income & VAT returns. If the tax year does not coincide with the calendar year the filing deadline is 3 months after tax year end.

Mid of May (if tax return is filed online) – Personal Income Tax Returns, Micro-Regimes (BIC & Foncier) & Unfurnished Lettings

Capital Gains Tax Rate
Rates range from 19% to 33%
Dual Tax Agreement with Ireland
Yes
Dual Tax Agreement with the UK
Yes

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French Fees

Filing services are offered to non-French residents.

Even if your property has not been let, you may be required to file a return or declaration. We have a range of plans to suit all types of properties – whether furnished or unfurnished etc.

Initial documents review – €150.00
This fee will apply only once for review of your property related documents for set up of your tax file with PTI.

Rental Income Tax Return – €400.00
This is a complete service covering the necessary tax returns for your furnished, non-furnished or Leaseback property (single or married – 1 property), provided detailed review of all supporting documents is required.

Micro Personal Income Tax Returns – €260.00
This is a lower fee option which is available for furnished and non-furnished lettings instead of the Personal Income tax return option above. If you choose this option a notional percentage deduction will be taken instead of 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 – €200.00
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.

Start/Cease of activity – €150.00
This is once-off declaration which is required when a property owner with a furnished property either starts renting it out for first time or ceases to rent the property.

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 is required to 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.

French NIL SCI returns – €182.00
This fee will apply in the event that no rental income was received. A NIL return must be filed unless it was reported to the FTO upon company registration that there were no plans to rent the property out.

Exemption declaration – €50.00
This annual declaration is required by French SCI and non-French companies based in the EU and owning French properties in order to avoid a 3% tax on the property value.

Additional property – €195.00
This fee is due for the 2nd and each subsequent property (this fee applies in addition to the fees outlined in points 1 and 2 above and regardless of whether the property is furnished, unfurnished or a leaseback property).

Additional owner – €75.00
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 points 1 and 2 above regardless of whether the property is a furnished, unfurnished or leaseback property.

Documents retrieval fee – €50.00
This fee will apply if you require PTI to obtain some documents on your behalf, excluding bank and mortgage statements.

Administrative fee – €20.00
This fee is obligatory and due for each year of submission. It covers postage, phone calls, photocopying etc.

Assistance with tax payments – €30.00

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 fee and does not apply where other discounts/reductions have been granted.

Notes:

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

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+353 1 635 3722

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