Foreign residents : What are the tax implications for the rent of a historic dwelling ?

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Many non-residents make property investments in France each year. What regulations should you be aware of when buying and letting a historic dwelling?

Résidents étrangers : quelle fiscalité pour la location de votre demeure historique ?
Owners of French property, whether citizens or not, are all taxed by the government. © FineBokeh

Foreign property owner ? your financial incomes are taxed in France

People domiciled outside of France are subject to French tax on any income from France. These are the international tax treaties determined by the government who has a right to tax this income. Rent from a French property, even a historical one, is taxable in France according to the same laws applicable to a French resident.

Good to know

No matter what their nationality or country of residence, landlords can deduct charges and deficits from French sources of revenue.

Renovation works on your historic residence can be deducted

Facade and rendering work on a historic residence owned by a non-resident can be deducted from the total revenue just like for French citizens. The tax authorities use a progressive table and apply the family quotient however, income rate taxe cannot be lower than 20 % of taxable income. This minimum rate can be refuted by non-residents if they can prove that the average rate tax, applied using the progressive table across all their French and international income, is lower than the minimum rate of 20 %. If so, this lower rate tax will be applied to their French incomes.

Good to know

Every year, non-residents file a French income tax return with the Noisy-Le-Grand tax office, the sole office they can deal with and only on specific dates

A tax representative is advisable

Upon request from the tax authorities, non-residents from outside the EU should hire a tax representative who will act accordingly throughout the process, during both tax collection and disputes. Failure to appoint such a representative within 90 days of the request will result in being taxed systematically.

Legal reference

  • BOI-IR-DOMIC-10-20-10
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