4. Taxation of Property Rental Income in France

1. 4.1. Non-Residents
2. 4.2. Summary of Tax Regimes
3. 4.3. Furnished Lettings
4. 4.4. Unfurnished Lettings
5. 4.5. Lodgings

4.1. French Rental Income - Non-Residents

You are liable to French income tax on French rental earnings, whether or not you are resident in France.

This follows the general principle that applies between most countries, that rental income is liable to income tax in the country where the property is situated.

Accordingly, even though you may be non-resident you will need to submit a tax return to the French authorities of your rental income in France (together with any other French sourced income).

In addition, you will need to declare the income to the tax authority in your own home country. We have no statistics on how many actually do so!

France has double taxation agreements with many countries, so in most cases you are unlikely to face being taxed twice on the same income.

UK residents benefit from a double taxation treaty, which grants partial relief against liability to tax in the UK. This means you need to declare the rental income to both the French and UK tax authorities.

Where your UK tax is greater than the tax payable in France, the difference is paid in the UK. However, if the UK tax is less, there is no repayment of the French tax in the UK.

In France, there is a basic rate of 20% of tax on the net rental (and other) income of non-residents, although you may be able to benefit from a lower rate, depending on the level of your worldwide income.

If you wish to make application for a rate of taxation lower than 20%, then you will need to declare all your worldwide income to the French tax authorities, together with supporting documentation (with French translation). This information will need to be included on the tax return F2042C (Line 8 TM).

The social charges payable by those resident in France on their rental income from France(see later in this section) do not apply to non-residents.

Neither are social charges payable by those resident in France, but receiving rental income from the UK. Many other countries adopt the same ruling in double taxation treaties with France.