Last Updated on October 4, 2024 by Kristina Valcheva
If you are contemplating the acquisition of real estate in France, grasping the intricacies of property tax in France becomes crucial.
Understanding international property tax regulations is important for anyone investing in assets abroad.
In this article, you will discover essential information about property tax in France for non-residents and tax returns applicable to real estate investments.
So, each year, approximately 90 million people visit France.
Wow… that’s a lot of tourists!
And it’s easy to see why so many travelers flock here.
Investing in French property is a great idea for foreigners due to stability, cultural richness, and high tourism.
The market offers potential for rental income and value appreciation, supported by favorable mortgage options and residency opportunities for non-residents.
If you own a holiday home in France, it’s important to get a good handle on your French property tax requirements.
This will help you stay on the good side of the tax authorities. It will also help you save on your property tax bill.
For example, if you are earning rental income from a property in France, you will likely be required to file a French income tax return.
Many non-residents struggle with French property taxes. So, with that in mind, we have put together this French property tax guide for non-residents to cover everything you need to know about your tax requirements.
FILE YOUR FRENCH TAX RETURN ONLINE
- In this article:
- I am a foreigner and I own property in France, what should I know about French property tax?
- I am a foreigner and I am renting out my French property. Should I file a French income tax return?
- Does my residency status matter when paying taxes to the French tax office?
- Has France signed double taxation agreements with other countries?
- I bought a property in France, what taxes should I pay?
- What is the difference between Taxe Fonciere and Taxe d’Habitation?
- What is Cotisation Foncière des Entreprises (CFE) and who is exempt from it?
- Can you reclaim VAT on the buy-to-let purchase?
- How to avoid overpaying tax on rental income from French property?
- What are the changes for UK resident landlords of French properties after Brexit?
- What are the US tax obligations for owners of French properties?
- Reporting requirements for property tax in France for non-residents
- What are the income tax deadlines in France?
- Who can help me file my French property tax return online?
Property tax in France for non-residents
I am a foreigner and I own property in France, what should I know about French property tax?
If you own property in France on January 1st, when you leave the country, you will be liable to pay local taxes. These taxes are managed by the tax office in the location where your property is situated.
Moreover, if you receive income from property in France or have rights related to that property (such as shared ownership or stock in property companies), as well as any additional revenue connected to the property, during the year you leave France, you will be required to pay taxes on these earnings.
The taxes can be either classified as property income or business profits.
Based on international tax agreements, if your property assets in France exceed €1.3 million on January 1st, you may also have to pay the property wealth tax (IFI).
Starting from January 1, 2023, property owners are required to report the occupancy status of their properties.
If you live outside of France, it’s important to contact your local tax authority to determine if you have any responsibilities for filing and paying taxes in your country of residence, even if you already pay taxes in France.
If you are a non-resident and have any questions on French property tax, you can request a free no-obligation consultation with a tax expert.
I am a foreigner and I am renting out my French property. Should I file a French tax return for non-residents?
Yes, you need to file two income tax returns. One in France and one in your country of residence.
Non-residents are taxed on their income from French sources. Married couples can be taxed separately or jointly.
The real estate could be liable to local taxes, income, succession, capital gains, and wealth taxes. We will outline this below.
You can file your French property tax return online with Property Tax International (PTI Returns).
We have 25+ years of experience in international tax and we offer a more affordable service than your local accountant.
Got questions on French property tax? You can request a free callback from a tax professional.
Am I a resident or non-resident of France for tax purposes?
Broadly speaking, you will be considered a resident in France if you live in the country for at least 6 months throughout the year, and this rule does not require that you have a permanent home there.
However, there are some circumstances where this 6-month rule cannot apply – for instance, business owners and professionals who travel frequently may not be considered residents, even though they have a permanent home in France.
In these cases, the French authorities will review the private circumstances for a period longer than a year to determine the residency.
Having said that, you could be considered a resident, even though you spent less than 6 months in the country but in the end, you’ve spent more time in France than in any other country.
Can I be a tax resident in two countries?
Yes, depending on your circumstances, it is possible to be considered a tax resident in two countries.
In such cases, you need to have a look at the double taxation agreements between the two countries to determine where you should pay tax.
The double taxation agreement should prevent you from being taxed more than once on the same income.
PTI Returns will help you avoid double taxation and remain tax-compliant both in France and in your home country.
Double tax treaties between France and other countries
France has signed tax treaties with more than 120 countries within the European Union and with countries outside the European Economic Zone. The list includes:
A | Albania, Algeria, Argentina, Armenia, Austria, Australia, Azerbaijan, |
B | Bahrain, Bangladesh, Belarus, Belgium, Benin, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Bulgaria, Burkina Faso, |
C | Cameroon, Canada, Central African Republic, Chile, China, Congo, Croatia, Comoro Islands, Cyprus, Czech Republic, |
D | Denmark, |
E | Ecuador, Egypt, Estonia, Ethiopia, Finland, French Polynesia, |
G | Gabon, Georgia, Germany, Ghana, Greece, Guinea, |
H | Hungary, |
I | Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Ivory Coast, |
J | Jamaica, Japan, Jordan, |
K | Kazakhstan, Korea Republic, Kuwait, Kyrgyzstan, |
L | Latvia, Lebanon, Lithuania, Luxembourg, |
M | Macedonia, Madagascar, Malawi, Malaysia, Mali, Malta, Mauritania, Mauritius, Mexico, Moldova, Monaco, Mongolia, Montenegro, Morocco, |
N | Namibia, the Netherlands, New Caledonia, New Zealand, Niger, Nigeria, Norway, |
O | Oman, |
P | Pakistan, Philippines, Poland, Portugal, |
Q | Qatar, |
R | Romania, Russia, |
S | St. Pierre, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Saudi Arabia, |
T | Tajikistan, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, |
U | Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, |
V | Venezuela, Vietnam, |
Z | Zambia, Zimbabwe, |