French Buyers' Info
Property Types in France
Property Restrictions for Foreigners
Purchase Process and Costs
Advantages of Buying a Newbuild Property
VAT Rebate for Rented Properties
Buying in the Name of a Company
Rental Income and Running Costs
Investment and Selling
Annual Property Taxes
Staying in France and French Residency
What are the rental income tax rates after deductions?
Non-residents pay French tax on the taxable income at a flat rate of 20%.
As explained above, you may make a lot of deductions before calculating your actual taxable income or if your gross rental income (i.e. the total rental income before deductions) from furnished lettings is less than €32,900, the taxable income may be calculated under the Micro-BIC, a simplified deduction scheme that simply taxes 50% of the gross income (i.e. 50% of the gross rental income – so the total income with no deductions at all – is automatically deducted in place of actual expenses).
No expenses need be demonstrated, no accounts are required and no separate tax forms for the business need be prepared. The main drawback of this regime is that it always shows a fixed taxable profit i.e. it can never show a lower net profit or a loss.
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