French Property Taxes Overview

The tax regime in France for rental properties is essentially split into three different categories depending on whether your property is let as a Leaseback, Furnished or Unfurnished letting. Depending on the category and income level there may be a choice of tax regime which is illustrated below:

LEASEBACK PROPERTY: (Income Tax & VAT Returns)

Leaseback – Rental Income less than €76,300 per annum

Must file under “REGIME “SIMPLIFIE D’IMPOSITION” which uses actual expenses and depreciation. It is not possible to file under a Micro Regime for a leaseback rental.

Value Added Tax (TVA) should be deducted at source by the leaseback company and paid over to the French Administration on your behalf. If not, (in rare cases), you will need to file an annual French VAT return.

Leaseback – Rental Income over €76,300 per annum

Foreign Tax Returns does not deal with leasebacks over the above threshold. This should be filed as a company and further guidance should be sought from an Expert Comptable in France.

Leaseback – Rental Income over €76,300 per annum

Must file under “REGIME “SIMPLIFIE D’IMPOSITION” which uses actual expenses and depreciation. It is not possible to file under a Micro Regime for a leaseback rental.

Value Added Tax (TVA) should be deducted at source by the leaseback company and paid over to the French Administration on your behalf. If not, (in rare cases), you will need to file an annual French VAT return.

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FURNISHED PROPERTY: (Income Tax Returns)

Furnished – Rental Income less than €76,300 per annum

Income Tax Returns – Choice to file under one of

  • “REGIME “SIMPLIFIE D’IMPOSITION” which uses actual expenses and depreciation.
  • MICRO REGIME which takes a flat deduction against gross rental income. No depreciation or expenses can be claimed here.

VAT Returns – are not applicable to a furnished property.

Furnished – Rental Income over €76,300 per annum

Foreign Tax Returns does not deal with furnished properties over the above threshold. This should be filed as a company and further guidance should be sought from an Expert Comptable in France.

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UNFURNISHED PROPERTY: (Income Tax Returns)

Unfurnished – Rental Income less than €15,000 per annum

Income Tax Returns – Choice to file under one of

  • “REGIME REEL DES REVENUE FONCIERS” which uses actual expenses and depreciation in limited circumstances.
  • MICRO REGIME which takes a flat deduction against gross rental income. No depreciation or expenses can be claimed here.

VAT Returns – are not applicable to an unfurnished property.

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