{"id":189642,"date":"2026-05-21T16:26:52","date_gmt":"2026-05-21T14:26:52","guid":{"rendered":"https:\/\/www.ruffetassocies.fr\/?post_type=specialisations-sect&p=189642"},"modified":"2026-05-21T17:19:38","modified_gmt":"2026-05-21T15:19:38","slug":"taxation-of-rental-income","status":"publish","type":"specialisations-sect","link":"https:\/\/www.ruffetassocies.fr\/en\/sector-specialisations\/taxation-of-rental-income\/","title":{"rendered":"Taxation of rental income"},"content":{"rendered":"\t\t
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FRENCH TAX RESIDENT
<\/strong><\/span>Progressive tax rates apply \u2013 additional social contributions are due on net taxable income (passive income) at a flat rate of 17.2%.<\/span><\/p>

NON-RESIDENT FRENCH TAX
<\/span><\/strong>Non-residents are only subject to French taxation on income sourced in France. They are subject to a two-tier minimum tax rate. In addition, social contributions apply on net taxable income (passive income) at a flat rate of 17.2%, or 7.5% for residents of the EU, the UK, and Switzerland (subject to conditions).<\/span><\/p>

IMPORTANT NOTICE
<\/span><\/strong>For individuals domiciled outside France or residing in France, the Ruyter case law applies to social contributions on property income (capital gains and rental income) derived from French real estate.
<\/span>These rulings apply to individuals affiliated with a social security system other than the French system: i.e., a compulsory statutory social security scheme in an EU country, the European Economic Area (EEA), or Switzerland.<\/span>
\u2013 Even after Brexit, UK residents or non-residents affiliated with National Insurance may still qualify for exemption.
<\/span>Both residents and non-residents are subject to tax on rental income, as rental income is taxed in the country where the property is located. Rental activity may be either furnished or unfurnished.
<\/span>Depending on the type of rental, the applicable tax regime differs, and the tax implications must be carefully considered.<\/span><\/p>

TAXATION OF FURNISHED RENTAL
<\/strong><\/span>The property must be equipped with sufficient furnishings to meet the tenant\u2019s basic needs. Income from this type of rental is declared under Industrial and Commercial Profits (BIC).<\/span><\/p>

Micro BIC
<\/span><\/span>Criteria:<\/strong> rental income below \u20ac15,000 per year (threshold increased to \u20ac77,700 for long-term rentals, classified tourist rentals, and guest rooms).<\/span>
Taxation:<\/strong> 30% allowance; taxation applies to 70% of rental income (50% allowance for long-term rentals, classified tourist rentals, and guest rooms).<\/span>
No additional expenses can be deducted beyond the allowance.<\/span><\/p>

Actual regime (R\u00e9gime r\u00e9el)
<\/span><\/span>Criteria:<\/strong> income above \u20ac77,700 per year or optional election by the owner.<\/span>
Taxation:<\/strong> owners are taxed on net income, with the ability to deduct all property-related expenses. Tax applies only to net income.<\/span><\/p>

Local regulations may restrict furnished rental activity in cities such as Paris, Nice, or Bordeaux.<\/span><\/p>

TAXATION OF UNFURNISHED RENTAL<\/strong><\/span><\/p>

The property must be rented without furniture. Income is declared as property income (rental income).<\/span><\/p>

Micro Foncier
<\/span><\/span>Criteria:<\/strong> rental income below \u20ac15,000 per year (mandatory for 3 years).<\/span>
Taxation:<\/strong> 30% allowance; taxation applies to 70% of rental income. No additional expenses may be deducted.<\/span><\/p>

Actual regime (R\u00e9gime r\u00e9el)
<\/span><\/span>Criteria:<\/strong> income above \u20ac15,000 per year or optional election by the owner.<\/span>
Taxation:<\/strong> the owner declares net income, meaning gross income minus all property-related expenses (repairs, management fees, etc.). Tax applies only to net income.<\/span><\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/section><\/div><\/div>

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\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tContact us<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\tReal estate acquisition: costs, legal and tax structuring choices\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t
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\n\t\t\t\t\t\t\tWhen acquiring a property, it is essential to determine the type of investment you are seeking. This will define the applicable tax regime as well as the most appropriate legal structure.\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\tClick Here\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\tTaxes related to property ownership\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t
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\n\t\t\t\t\t\t\tSeveral taxes are payable each year by property owners: property tax, residence tax, business property tax (CFE), rental income contribution (CRL), etc.\nOur firm advises you on your obligations and the key deadlines not to miss.\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\tClick Here\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\tTaxation of rental income\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t
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\n\t\t\t\t\t\t\tResidents and non-residents are subject to specific tax rules on rental income earned in France.\nDiscover the applicable tax regimes according to your situation and the type of rental activity.\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\tClick Here\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\tReal estate wealth tax (IFI)\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t
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\n\t\t\t\t\t\t\tThe Real Estate Wealth Tax (IFI) applies to individuals holding significant real estate assets in France.\nFind out who is concerned, which assets are taxable, and which liabilities may be deducted.\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\tClick Here\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\tReal estate capital gains tax\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t
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\n\t\t\t\t\t\t\tSelling a property in France often results in taxation on the capital gain.\nDepending on your situation (holding period, tax residency, type of property), exemptions or reductions may apply. It is important to fully understand these rules in order to optimize your tax position.\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\tClick Here\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\tTransfer of your assets: inheritance tax\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t
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\n\t\t\t\t\t\t\tThe transfer of real estate in France is subject to inheritance tax, with allowances and rates varying depending on the family relationship. Whether the property is held directly or through a company, taxation may also depend on international tax treaties.\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\tClick Here\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"featured_media":187050,"menu_order":0,"template":"","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"Taxation of rental income","_seopress_titles_desc":"The specific nature of French taxation regarding real estate investment and wealth ownership can quickly become complex. Financial regulations and transactions related to the acquisition or management of a property often require the support of a professional specialist in this field.","_seopress_robots_index":"","content-type":""},"_links":{"self":[{"href":"https:\/\/www.ruffetassocies.fr\/en\/wp-json\/wp\/v2\/specialisations-sect\/189642"}],"collection":[{"href":"https:\/\/www.ruffetassocies.fr\/en\/wp-json\/wp\/v2\/specialisations-sect"}],"about":[{"href":"https:\/\/www.ruffetassocies.fr\/en\/wp-json\/wp\/v2\/types\/specialisations-sect"}],"version-history":[{"count":13,"href":"https:\/\/www.ruffetassocies.fr\/en\/wp-json\/wp\/v2\/specialisations-sect\/189642\/revisions"}],"predecessor-version":[{"id":189711,"href":"https:\/\/www.ruffetassocies.fr\/en\/wp-json\/wp\/v2\/specialisations-sect\/189642\/revisions\/189711"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ruffetassocies.fr\/en\/wp-json\/wp\/v2\/media\/187050"}],"wp:attachment":[{"href":"https:\/\/www.ruffetassocies.fr\/en\/wp-json\/wp\/v2\/media?parent=189642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}