Description Page Implications-fiscales
Content Implications fiscales
Taxes on property revenue:
For French residents:
You are a full time resident working in France, and the owner of a French property which you let. The taxes on your property income are calculated based on total annual property revenues minus annual interest payments on your loan. They will be incorporated into your overall tax assessment, which is determined by your professional income.
Non-resident owners of property in France are required to pay a fixed tax on property revenues. This is initially calculated as for French residents on the total annual property revenues minus annual interest payments on your loan; however, non-residents then pay approximately 25% of this sum.
French regional taxes:
Residence tax (taxe d’habitation):
This is an annual residence tax imposed on the occupier of a property in which they were resident on 1st January of each year.
If the property is your second home, even though you may not physically be resident on 1st January, the tax is still payable, provided the property is capable of occupation.
Thus, the law assumes that if you have the right of occupation of the property and it is furnished and habitable, then the tax is payable. Liability to the tax has nothing to do with the amount of time you actually occupy the Do not hesitate to seek advice from an independent tax consultant, the French tax authorities or your notary.
basis the tax is payable by the tenant.
Tenants of holiday lettings do not pay the tax, but any tenant occupying the property on 1st Jan on a permanent or even semi-permanent basis is liable for the tax. The rule applies whether the property is furnished or unfurnished.
Since January 2018 this tax is being abolished on a phased basis.
If your income is no higher than certain thresholds (which depend on family composition), then you receive a reduction in the amount of tax that you need to pay. This reduction, or relief, is called a dégrèvement or allégement.
Ownership tax (taxe foncière):
This tax is an annual property ownership tax imposed on the owner, whether or not the property is actually occupied by them or rented out.
The tax is levied for the year in which it is imposed and payable by the person(s) owning the property on 1st January of that year.
It is important to be clear about what tax payments you will be liable for in relation to your property. Do not hesitate to seek advice from an independent tax consultant, the French tax authorities or your notary