Ongoing Property Taxes Payable in France
A French Rental Income tax return must be filed with the French tax authorities
by the 30th June, the year after income was first received.
French income tax is payable on income arising in France. For non-resident individuals,
French income tax is payable at progressive rates on income after allowable deductions
for expenses incurred in connection with letting or maintaining the property.
French leaseback, SCI, furnished and unfurnished properties are treated differently
for tax purposes.
Furnished property is treated as a Commercial entity for taxation purposes in France.
Non-residents can choose which method of taxation they choose.
Where income is less than €32,000 a deduction of 50% (71% for 2008 and previous
years income) of costs is allowable in arriving at taxable income and net income
is levied at 20% under the Micro Regime system.
For income greater than €32,000, or where you choose to opt out of the simplified
scheme, tax is calculated on an actual receipts/costs basis and gross income is
levied at 20% (Regime Simplifie d'imposition)
Unfurnished property is taxed on income less allowable expenses under the Regime
reel des revenues Fonciers which is regarded as Non-Commercial property.
Non-residents can benefit from a simplified scheme known as the Regime du Micro
Foncier – where income is less than €15,000, a deduction of 30% for related costs
is permitted in arriving at taxable income which is levied at a flat rate of 20%.