If you are earning income from a property in France then you are legally obliged to declare it and file a tax return. It is important to remember that there is no reporting threshold, which means that any profit should be reported, even if it’s non-taxable.
You should be sure to keep detailed records on all income and expenditures related to the property. These documents will be important when you sit down to file your return. Typically, the deadline to file a business or personal return occurs in May each year, if you miss the deadline you may have to pay a fine.
If you would like help filing your French property tax return then help is on hand
Our sister company, Leggett Property Management, has partnered with a team of tax experts who specialise in this area. They will minimise your tax liability by applying every eligible tax relief, expense, and deduction to your tax return.
Simply mail firstname.lastname@example.org to set the ball rolling.
- it’s a simple, online, service
- it ensures full compliance with the French tax authorities
- you will save on your tax bill, availing yourself of all allowable expenses
- the tax support will be in English
- you can reclaim any overpaid CFE (Cotisation Fonciere des Enterprises).
The seven taxes you may incur:
1. Income tax – non-residents are taxed at a flat rate of 20%, or 30% on investment and rental income.
2. Social charges – the rate of social charges and income tax on profit for EU residents is typically 27.5% (20% income tax, 7.5% social charges).
3. Taxe Fonciere
4. Taxe d’Habitation
5. CFE – paid annually by owners of furnished real estate in France and based on a theoretical rental value of the property.
6. Capital Gains Tax
7. IFI (Impot sur la Fortune Immobiliere) – has a tax free allowance of 800,000 euros, after that rates start at 0.5% and rise progressively to 1.5%