4. Taxation of Property Rental Income in France
4.5. Taxation of Lodgings Income
Those who let out furnished rooms in their own home are exempt from income tax, social security contributions and business rates on the income.
The concession is subject to two conditions:
i. Main Home - That the accommodation constitutes the principal home of the tenant and of the owner.
Lettings to students living away from their main home are considered to be eligible for this concession as the property constitutes their principal home during their studies.
In addition, the accommodation need not be the principal home of the tenant if the individual concerned has an employment contract as a seasonal worker.
ii. Maximum Rent - That the annual rental does not exceed a maximum 'reasonable' rate, a figure which is determined by the government and revised each year.
For 2023 the maximum rate is:
- €199m2 per year in the Ile-de-France
- €147m2 per year elsewhere
So for a room of 20m2 in the Ile-de-France, the maximum annual rent is €3,980.
If you let above these levels, the whole of the income is taxable.
These maximum rents exclude other charges that may be payable, e.g. meals, laundry, electricity.
If you meet the criteria then you have no need to declare this income on your income tax return.
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