Taxation of rental income

For furnished properties, there are also two possible options for lessors: 

• Taxpayers can choose the to be assessed under the régime micro if rental income is less than EUR 72,600 p.a. Under this system, taxpayers include gross rental income on their personal income tax return and the tax authorities apply a flat-rate deduction of 50% for costs.
• The régime réel meublé is the alternative, which applies if rental income exceeds EUR 72,600 or if the taxpayer chooses to be taxed under this system. Under the régime réel system, a balance sheet must first be prepared before the net income is reported on the income tax return. Operating costs can be deducted in accordance with BIC rules (the rules applicable to bénéfices industriels et commerciaux – industrial and commercial income), which allow for the deduction of depreciation.

Taxation of rental income in France : Roche & Cie can assist with your declaration.

We can advise on the most appropriate tax system for rental income for your situation – rental income, furnished let, let with hotel services (para-hôtellerie), etc. We can take care of your reporting obligations: prepare the balance sheet, submit the tax return for your real estate investment company (SCI) (French tax form 2072), prepare your personal income tax return, etc.