Non-residents: tax on rental income from France

Where are the rents taxed?

A non-resident declares in France the French-source income that is taxable in France under the tax treaty concluded with their State of residence (impots.gouv.fr). The fact sheet for Canada, for example, lists among the income to be declared in France rents and capital gains from property located in France. The tax authority publishes 36 country fact sheets.

Declaring in France does not release you from your obligations in your country of residence: it may require you to declare all your worldwide income and then eliminates double taxation under the treaty (impots.gouv.fr). The French return is filed online, a paper return being accepted only exceptionally.

Unfurnished or furnished letting: the income category

Unfurnished letting. Rents are revenus fonciers (property income) (impots.gouv.fr; see our guide on location nue ou meublée (unfurnished or furnished letting)):

• micro-foncier (simplified flat-rate scheme) if the household’s gross rents do not exceed €15,000: gross amount in box 4BE of form 2042, with a 30% allowance applied automatically;
• régime réel (actual-expenses regime) above that, or by irrevocable election for 3 years, with form 2044, the result being carried over to 4BA (profit) or 4BB and 4BC (deficit).

Details of both regimes are in our guide on revenus fonciers et micro-foncier (property income and the micro-foncier scheme).

Furnished letting. Rents fall under bénéfices industriels et commerciaux (industrial and commercial profits) and are declared on form 2042-C-PRO (impots.gouv.fr). The landlord is a professional if the household’s receipts exceed €23,000 and are greater than their other earned income; otherwise they are a non-professional furnished landlord (see our guide LMNP (non-professional furnished letting)). Since 2025 income, the micro scheme for unclassified furnished tourist accommodation is limited to €15,000 of receipts with a 30% allowance.

All owners also declare, before 1 July, the occupancy status of their homes in the “Gérer Mes Biens Immobiliers” service (the online property management service), unless nothing has changed (impots.gouv.fr).

The 20% or 30% minimum rate

The non-resident is taxed on the progressive scale, but with a floor rate (impots.gouv.fr):

If the progressive scale gives a higher rate, the scale applies.

Recalculated example: €12,000 of annual rent from an unfurnished letting, under the micro-foncier. Taxable income: 12,000 × 70% = €8,400. At the 20% minimum rate: €1,680 of tax, before social security levies.

As a rule, a non-resident can neither deduct expenses from their overall income nor benefit from tax reductions or credits. There are exceptions, notably for Pinel and Denormandie investments made since 2019 by a taxpayer who was then resident, and for Loc’avantage if the agreement took effect before departure (impots.gouv.fr).

Opting for the average rate

The non-resident can ask for their French income to be taxed at the average rate they would bear if all their worldwide income were taxed in France. They then declare their French-source and foreign income; the foreign income is used only to calculate the rate and is not taxed in France (impots.gouv.fr).

In the tax authority’s example, a single retiree declares €10,000 of net French property income and €10,000 of foreign pensions. The tax calculated on €20,000 is €924, i.e. an average rate of 4.62%. Applied to the €10,000 of French income: €462, instead of €2,000 at the minimum rate.

Online, the option is ticked in the section for non-residents; on paper, it goes through box 8TM of form 2042 C and form 2041 TM. The tax authority applies the average rate only if it is more favourable. Supporting documents, translated into French, must be kept available. A forgotten option can be exercised through the online correction service, open from early August to early December, or by a formal claim (impots.gouv.fr).

A word of caution for unfurnished lettings: if you opt, French and foreign rents are assessed together for the €15,000 threshold; if it is exceeded, the micro-foncier cannot be kept (impots.gouv.fr).

Social security levies by country of residence

Social security levies apply to non-residents’ French-source property income (impots.gouv.fr):

Since 1 January 2019, these insured people have been exempt from CSG and CRDS (social contributions) but remain liable to the 7.5% solidarity levy. The affiliation must be effective on 31 December of the year in which the income is received. To benefit, you tick boxes 8SH or 8SI of form 2042 C; instalments are then calculated without social security levies and the 7.5% is collected with the balance (impots.gouv.fr; see our guide on prélèvement à la source des revenus fonciers (withholding tax on rental income)). A forgotten exemption is claimed through the secure messaging service.

Which professional to consult

The agent immobilier (estate agent) can handle letting and management remotely, and provide statements of rents received to be carried over to the tax return. The notaire (notary) acts on the purchase or resale of the let property, and can advise on the consequences of holding it directly or through a company.