4. Taxation of Property Rental Income in France

  1. Non-Residents
  2. Summary of Tax Regimes
  3. Furnished Lettings
  4. Unfurnished Lettings
  5. Lodgings

4.2. Summary of Income Tax Regimes for Rental Income

There are a number of different income tax regimes for rental profits, with the major distinction depending on whether you let furnished accommodation or an unfurnished property.

If you let both, then each will taxed on a separate basis, using the applicable tax regime for each type of letting.

A second distinction is based on your turnover, with smaller landlords given some choice as to the basis on which they can be taxed.

In the following table we summarise the basic personal tax regimes.

We do not consider the system of company taxation of property profits as this is unlikely to be advantageous unless you have substantial rental or other earnings.

However, it is possible to establish a fiscally transparent French property company, called a Société Civile Immobilière(SCI), and adopt the system of personal taxation outlined below, for use with unfurnished accommodation.

The basic differences in the various income tax regimes are as follows. These rates and thresholds are those applicable for 2015.

The higher 'Micro BIC' figures shown apply if you run a chambre d'hôte, an accredited gîte rural or a meublé de tourisme.

The lower 'Micro BIC' turnover threshold and 50% tax allowance applies to other types of furnished lettings.

The 'Micro-BIC' tax regime applies equally if you opt for the business status of auto-entrepreneur.

Table: Income Tax Regimes

Furnished Accommodation Unfurnished Accommodation
Tax Regime Micro BIC Regime Réel Micro Foncier Regime Réel
Max Turnover €32,900/€82,200 Unlimited €15,000 Unlimited
Tax Allowance 50%/71% Eligible Costs 30% Eligible Costs

We describe each tax regime in further detail in the following pages.

Separately from these tax regimes, there are social security charges, which are generally more onerous than the income tax system, although different rules apply for residents and non-residents. We also consider these regimes in later pages.

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