![Parisian building, France Taxation of rental income in France](https://i0.wp.com/www.cabinet-roche.com/wp-content/uploads/2023/04/AdobeStock_145272209-scaled.jpeg?resize=1080%2C704&ssl=1)
Taxation of rental income in France
The type of tax return required in France depends on whether the property is let unfurnished or furnished.
If a property is let unfurnished, there are two ways for the lessor to declare the rental income:
- Taxpayers can choose to be assessed under the régime micro if rental income is less than EUR 15,000 p.a. Under this system, taxpayers include gross rental income on their personal income tax return and the tax authorities apply a flat-rate deduction of 30% for costs.
- The régime réel foncier is the alternative, which applies if rental income exceeds EUR 15,000 or if the taxpayer chooses to be taxed under this system. A special form is submitted as part of the annual tax return which details the rental income and associated costs (in accordance with a list of costs defined by law).
For furnished properties, there are also two possible options for lessors:
- Taxpayers can choose the to be assessed under the régime micro if rental income is less than EUR 72,600 p.a. Under this system, taxpayers include gross rental income on their personal income tax return and the tax authorities apply a flat-rate deduction of 50% for costs.
- The régime réel meublé is the alternative, which applies if rental income exceeds EUR 72,600 or if the taxpayer chooses to be taxed under this system. Under the régime réel system, a balance sheet must first be prepared before the net income is reported on the income tax return. Operating costs can be deducted in accordance with BIC rules (the rules applicable to bénéfices industriels et commerciaux – industrial and commercial income), which allow for the deduction of depreciation.
How can we help you ?
The missions we can offer you:
Drafting of a tax study: with simulation of your tax obligations in France ; a key solution to secure your installation in France in order to avoid unfortunate situations, such as delays or errors in your tax returns.
Follow-up of your tax returns in France: income tax, real estate wealth tax, rental income
Taxation of rental income in France
appropriate tax system for rental income for your situation
reporting obligations
![Fenêtres immeuble parisien Taxation of rental income in France](https://i0.wp.com/www.cabinet-roche.com/wp-content/uploads/2023/04/AdobeStock_52019993-scaled.jpeg?resize=1080%2C717&ssl=1)
Taxation of rental income in France : Roche & Cie can assist with your declaration.
We can advise on the most appropriate tax system for rental income for your situation – rental income, furnished let, let with hotel services (para-hôtellerie), etc. We can take care of your reporting obligations: prepare the balance sheet, submit the tax return for your real estate investment company (SCI) (French tax form 2072), prepare your personal income tax return, etc.
Taxation of rental income in France
Contact us to find out more about how we work and to discuss your specific needs.
The latest news in real estate ?
I’m buying a property in France: what taxes should I pay?
In the world of real estate investment in France, non-resident investors face a unique challenge: understanding and navigating the complex labyrinth...
French real estate wealth tax (IFI): clever ways to reduce your tax with donations
France offers taxpayers a significant opportunity to support philanthropic causes while benefiting from tax advantages. One of the most attractive...
Seasonal furnished lettings: clarification from the French tax authorities
In our previous news, we discussed the reform of the taxation of seasonal lettings in France. The Finance Act for 2024 significantly tightened the...