French Tax DeadlinesThe 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:
- 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 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.
Local Property TaxLocal property taxes apply in France. These are based on the value of the property and vary per region. 1. Taxe Foncière – 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 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 refund. Exactly how much CFE you can claim back will depend on the amount of income and expenses you had in the relevant tax year. PTI will check if you are paying too much CFE on your French property and help you claim your refund from the tax authorities.
French Capital Gains TaxFrench 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 ResidentsIf 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.
Our French Tax Return ServiceOur 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.
- 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
Learn More on French Property Tax
- 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 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 have a French furnished property, what are my French tax obligations?
As a non-resident French furnished property owner you are obliged to file a French business tax return and a French personal tax return. Income from French furnished property is treated as commercial income. Non-resident French furnished property owners with French Income can benefit from a simplified scheme of French tax return called Micro-BIC. This method of taxation allows a notional deduction of 50% 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.
- I received rents 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.
Tax Rates and Deadlines
Mid of May (if tax return is filed online) – Personal Income Tax Returns, Micro-Regimes (BIC & Foncier) & Unfurnished Lettings
French Tax Services & 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.
PTI caters for investors and lifestyle property owners all over the world. With unrivalled knowledge of local tax legislation, our team will minimise your tax liability by ensuring you avail of every relief you’re entitled to.Save time and stress when filing your international property tax return. File with PTI.
- Initial documents review – €150.00
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 PTI. We will review all your documents and help you file your tax return easily online.
- Rental Income Tax Return – €400.00
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 – €260.00
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 – €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. 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 – €150.00
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 – €182.00
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 – €50.00
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 – €195.00
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 – €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 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 – €99.00
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 – €50.00
- 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.
- Administrative fee – €20.00
- This fee is obligatory and due for each year of submission. It covers postage, phone calls, photocopying etc.
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.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%.
Note: this discount does not apply where other discounts/reductions have been granted.
- 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.
Learn more about property income taxes in France.
- A PTI 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 work on your tax return, we will need you to share the necessary property information and tax documents with our team