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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 2017.

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

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

Table: Income Tax Regimes

Furnished Accommodation
Tax Regime: Micro BIC Regime Réel
Max Turnover: €31,200/€82,800 Unlimited
Tax Allowance: 50%/71% Eligible Costs
Unfurnished Accommodation
Tax Regime: Micro Foncier Regime Réel
Max Turnover: €15,000 Unlimited
Tax Allowance: 30% Eligible Costs

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

Separately from these tax regimes there are social charges/social security contributions, which are generally more onerous than the income tax system. We also consider these regimes in later pages.

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