Tax on Rental Income in France: A Guide for Foreign Property Owners (2027)

One of the questions I get asked most frequently by British property owners is: ". . . Do I have to declare the rental income in France, even though I live in the UK? . . ."

Well, the simple answer is unless you are Airbnb or Google, then yes. If a rental takes place in France, in your property in France, then you will normally have to declare that rental income to the French tax authorities. And depending on your circumstances, you may have to pay French income tax on it as well.

Now, I appreciate that this isn't exactly the news that most second-home owners want to hear. But the good news is that France has perfectly legal ways to reduce the amount of tax you pay. And even if you do end up paying a French tax bill, you may still be much better off renting the house than leaving it empty.

There are often two distinct reactions to the news that rental income is taxable in France.

 

"Well, in that case, it isn't worth renting the house out!"

This is probably the most common reaction I get. But think about it. Owning a house in France is not cheap. Whether you rent your French house out or not, you still have to pay taxe foncière, and generally taxe d'habitation if it is your second home. You still have buildings insurance, maintenance, heating, gardening and all the other costs of owning a property.

Depending on the size of the house, those annual running costs could easily amount to €6,000–€8,000 per year.

And remember, that is money going out of your pocket, not coming in. So your starting position is already minus €6,000–€8,000 every year, before you have received a single euro in rental income.

Rental illustration

Now, let's assume a British couple own a second home in France. They live permanently in the UK, have no other French income, are not French tax residents and are affiliated to the UK social security system. They decide to rent out their furnished French house and earn €15,000 in rental income over the year.

So how much French tax will they have to pay?

(You can see all the detailed workings out and the different French tax regimes later in this article: see French tax on rental income.

Suddenly, paying French tax on your rental income doesn't sound quite so terrible, does it? That is €13,000 of money you would not have received if the house stood empty. Of course, management fees, cleaning, repairs and other rental expenses must also be considered. But the basic argument remains the same. Why reject an income just because some of it will be taxed?

There are other benefits too. A house that is occupied during winter is being heated, ventilated and looked after. Tenants can spot a leaking pipe or a damp patch before it becomes a major repair. As we explain in our guide to renting out a French holiday home, a sensible combination of summer and winter rentals can help a property more than 'wash its face'.

 

"I pay my French taxes already, I am not paying any more!"

I do have some sympathy with this argument. If you own a second home in France, you are already paying taxe foncière and generally taxe d'habitation on second homes. Depending on the property, these can amount to several thousand euros a year.

But these are taxes on owning the property. You have to pay them whether your house is rented out or sitting empty.

Rental income is different. It is money coming in rather than going out. And as we demonstrate below, the French tax authorities don't necessarily tax every euro you receive in rent. I would much rather receive €15,000 in rental income and pay some tax on it than receive nothing at all and still have all the bills to pay.

 

"We never stay more than 90 days in France, so we are not resident for French tax"

This is another argument I hear regularly, particularly from British and American second-home owners. Their fear is that if they rent out their house in France, then they will suddenly become subject to French taxes, Wealth taxes, Inheritance taxes, Tourist taxes - you name it! Before long, they will be wearing a beret and drinking Pastis!

But there is some confusion here between French tax residency and French tax on rental income.

Just because you complete a French tax return to declare your rental income, it doesn't mean you suddenly become a French tax resident. French tax residency depends on several factors, including where you normally live, where your family and main economic interests are based, and how much time you spend in France.

The fact that you earn rental income from a French property does not automatically make you a French tax resident.

So there are two important points here:

• You don't have to be a French tax resident to be liable for French tax on rental income from a French property.
• If you rent out your French house, that income will normally need to be declared in France, even if you spend fewer than 90 days a year there.

And importantly, filing a French tax return as a non-resident doesn't mean France can suddenly tax all your worldwide income.

 

"Well, I will just keep it under the radar"

Some owners take a different approach: they rent the house out but decide not to declare the income. This is a bad idea for two reasons.

First, the French tax authorities are not stupid. Major platforms such as Airbnb, Vrbo and Booking.com have reporting obligations. And local communes have a financial interest in ensuring that holiday accommodation is properly registered and tourist tax is collected. The days of assuming that nobody will notice are long gone.

Second, what happens when something goes wrong? You can arrange a private rental and have the money paid into a British, Swedish or Australian bank account. But that does not remove your French tax obligations. What happens if the tenant stops paying the rent, causes damage or runs up an enormous electricity bill? An undeclared rental does not automatically prevent legal action, but it can make a difficult dispute more complicated, particularly without a properly drafted rental contract. And a disgruntled tenant can always alert the tax authorities.

There is a much better approach: declare the income, keep proper records, use a proper French rental contract and take advantage of the legitimate tax deductions available.

 

2. Do foreign owners have to pay French tax on rental income?

Generally, yes. Rental income arising from property situated in France is taxable in France, even if the owner lives in Britain, Ireland, Canada, Australia or elsewhere. You may also have to declare the income in your country of tax residence. Tax treaties and domestic relief rules are intended to address double taxation, but they do not necessarily mean that you only have to file a tax return in one country. Quite often you will have file a tax return in France, as well as your home country.

French income tax for non-residents is not a universal flat 25%. Minimum tax rates of 20% or 30% may apply, depending on the amount of taxable income. There is also the possibility of having a lower average rate based on worldwide income. The result depends on your taxable profit, residence, tax treaty position and other income. Social security contributions may also apply.

How much French tax will I have to pay on income from rentals

Let's follow the example we used above. This was a British couple who own a second home in France. They live permanently in the UK, have no other French income, are not French tax residents and are both affiliated to the UK social security system.

They decide to rent out their furnished French property and earn €15,000 in rental income over the year. Please note this is for furnished rentals (not unfurnished property rentals)

For this example, let's assume the income comes from genuine longer-term furnished rentals (that qualify for the standard micro-BIC tax regime), rather than unclassified short-term holiday accommodation. Ignore the technical jargon, stay with me on this.

Under the micro-BIC rules, the French tax authorities automatically allow a 50% deduction from the rental income when calculating taxable profits. This is important. The tax authorities are already assuming that half of your rental income is taken up with running costs, commission fees and maintenance, etc. So, the principal is that you will pay tax and social charges on the remaining 50%. Also, quite importantly, you don't need to establish a micro-entrepreneur business in France to benefit from this tax regime.

Here's what the figures could look like:

A quick word about these figures: I'm not an accountant. I have a personality. The calculations above are illustrative and based on the official French tax rules published for 2026 by the French tax authorities (Direction générale des Finances publiques). You can check the 2026 micro-BIC tax rules and the tax treatment of non-resident property owners yourself. The example is based on a qualifying UK-resident couple receiving ordinary furnished rental income under the micro-BIC tax rules. It assumes the 20% non-resident income tax rate and eligibility for the 7.5% solidarity levy. The example excludes property running costs, rental expenses, CFE, possible social-security contributions and UK tax consequences. The actual tax treatment depends on the owners' circumstances and the nature of the rentals. Before making any decisions, speak to a qualified French accountant.

 

That's an effective tax charge of approximately 13.75% of their gross rental income. Suddenly, renting out the house doesn't look quite so unattractive, does it?

Of course, this isn't necessarily the end of the calculation. The couple still have their normal property running costs, any additional rental expenses and potentially other taxes or reporting obligations to consider. They must also consider how the income is treated on their UK tax return.

But it does demonstrates an important point: the headline French income tax rate of 20% or 30%, does not mean handing over 20% of every euro received in rent.

And if their actual deductible expenses are particularly high, the alternative régime réel tax system might produce an even better result. I outline the three different tax regimes below. By all means skip this section if you are allergic to numbers.

 

a.) Micro-BIC: the simpler furnished rental tax scheme

The micro-BIC system is the simplest way for many owners to declare their French furnished rental income.

And here's something important: you do not need to set up a French company or become a micro-entrepreneur to use micro-BIC. But you do have to register your furnished rental activity with the French authorities and obtain a SIRET number. But that is not the same as setting up a company.

Then, when you complete your annual French tax return, you declare your gross rental receipts in the furnished rental section of the supplementary 2042-C-PRO form (normally under Revenus des locations meublées non professionnelles).

For ordinary furnished rentals, the tax authorities then automatically apply a 50% allowance to qualifying receipts. You don't have to submit individual invoices for cleaning, repairs or management fees to claim it. In effect, the French tax authorities are allowing for the fact that renting out a house costs money.

How much rental income can you earn under micro-BIC?

There are limits to how much rental income you can receive and still qualify for the simplified micro-BIC tax system. These limits depend on the type of furnished accommodation you rent out.

The French tax authorities distinguish between 3 different types of furnished rentals: ordinary furnished residential rentals, classified tourist accommodation and unclassified tourist accommodation. A classified tourist rental (meublé de tourisme classé) is a holiday property that has undergone an official assessment and received a classification, usually from one to five stars. Simply registering your holiday home with the local Mairie does not make it classified.

We explain the advantages and restrictions of classified tourist rentals further down this article.

For ordinary furnished residential rentals, the maximum annual receipts threshold is €83,600 per year under the published 2026 rules. For unclassified holiday accommodation, however, the threshold is much lower, at €15,000 per year.

The table below shows the different limits and the standard tax allowance available for each type of rental.

Published thresholds for 2026 rental income. Eligibility depends on the applicable preceding-year receipts tests and the nature of the rental activity.

For example, an ordinary furnished rental receiving €20,000 in qualifying annual receipts under micro-BIC would generally benefit from a 50% allowance, leaving €10,000 as taxable rental income before applying income tax and any applicable social contributions. That does not mean the owner pays 50% tax.

For summer holiday lets, there is an important distinction between accommodation that is officially classified as a meublé de tourisme and accommodation that is merely registered with the Mairie. They are not the same thing. Also, the tax treatment of a property used for both holiday lets and longer furnished rentals should be checked with an accountant rather than assuming one allowance covers every booking.

 

b.) Régime réel: deducting actual costs

The régime réel involves more paperwork, but it can be very attractive for owners who have substantial expenses. Instead of using a flat-rate allowance, you can deduct eligible costs such as repairs, property management, insurance, advertising, certain taxes, professional fees and other expenditure connected with the rental business.

Depreciation of the building and furnishings may also reduce taxable rental profits (subject to accounting rules). Depreciation is an accounting allowance that recognises the gradual wear and tear of the building and furnishings over time. Unlike maintenance bills, it isn't necessarily money you have actually spent during that tax year. But you do have to be aware that if you apply depreciation of the house during ownership, this could affect the capital gains calculation when you eventually sell the property.

And just like micro-BIC, you do not need to establish a French company or become a micro-entrepreneur to use the régime réel. You can remain a private individual renting out a furnished property, although registration, proper accounts and additional tax declarations are normally required.

Could the régime réel save you even more tax?

Let's return to our example of a furnished French house generating €15,000 in annual rental income.

Under micro-BIC, the standard 50% allowance leaves €7,500 as taxable rental income. But suppose the owner has substantial expenses that are more than half the total income. They have an expensive alarm system costing them €800 a year. Their pool guy charges €70 per visit. The gardener comes 4 times a year to cut the trees and the lawn at €400 per visit. All these things can add up. Then you have the eligible 'depreciation' on the building and furnishings.

Here's how the figures might look under the régime réel:

These figures are illustrative and assume the same qualifying non-resident tax circumstances as our earlier micro-BIC example. Actual deductible expenses and depreciation must be established under the applicable accounting rules. The calculation excludes additional accountancy costs, possible social-security contributions and the potential effect of depreciation on capital gains when the property is eventually sold.

In this example, the owner would pay €412.50 less in French tax and social charges (solidarity levy) than under micro-BIC.

Now, that isn't a fortune, particularly when you consider the additional accountancy fees involved. But for owners with expensive maintenance, substantial property management costs or significant eligible depreciation, the savings could be considerably greater.

This is where a good French accountant earns their fee. Ask them to compare both systems using your actual property expenses. The simplest tax regime isn't always the cheapest, but neither is the most complicated one automatically the best.

 

c.) Meublé de tourisme: is tourist classification worth the bother?

This is something I encounter quite regularly when speaking to property owners in France.

An owner tells me that their accountant has advised them to have their holiday home officially classified as a meublé de tourisme. They have gone through the inspection process, obtained their star classification and are quite pleased with themselves. They regard this meublé de tourisme as a badge of honour.

And I can understand why (to a point). As we outlined in the table above, officially classified tourist accommodation qualifies for a 50% tax allowance, compared with just 30% for unclassified tourist accommodation.

But then we get onto the subject of longer-term winter rentals.

More than once, an owner has told me something along these lines:

"Under my tax regime, I'm only allowed to rent my house to the same person for 90 days. My accountant has suggested that if it's a married couple, we can have one 90-day rental contract in the husband's name and then another 90-day contract in the wife's name."

I find this absolutely ludicrous.

We have a couple who want to rent a house for six months over the winter. The owner is perfectly happy to rent it to them. Yet somehow we end up discussing two separate rental contracts, simply because the husband and wife will be occupying the property for longer than 90 days.

The difference between tourist rentals and longer-term furnished rentals

First, let's clear up a common misunderstanding.

You can rent your French property to summer holidaymakers and also accept genuine longer-term winter tenants. The income from both activities can be declared on the same French tax return, provided it is reported correctly.

A meublé de tourisme is furnished accommodation intended for temporary holiday visitors. Under the tourist accommodation rules, the same tourist cannot normally occupy the property for more than 90 consecutive days. That much is true. 

But this is not a restriction imposed by the micro-BIC or régime réel tax systems. It comes from the rules governing tourist accommodation.

Perhaps some accountants are missing the bigger picture. An owner might save a few hundred euros in tax on their summer rentals, but if they mistakenly believe they cannot accept a longer-term winter tenant, they could be missing out on €12,000 in rental income from a six-month winter let. That is a lot of money to forego to save a few hundred quid!

My advice is simple: choose the rental arrangements that suit your customers and maximise your annual occupancy, then work with your accountant to establish the most appropriate tax treatment. Jumping through hoops to obtain a tourist classification can be self-defeating if you end up missing out on valuable winter rental income. Sometimes the simplest tax arrangements are also the most profitable.

 

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3. What about tourist tax, local business tax and social charges?

If you let your property to holidaymakers, you may need to register the accommodation locally and collect taxe de séjour. The rate varies by commune and the type or classification of accommodation. It is not a universal charge of €0.70 per person per night.

Furnished rental activity can also give rise to CFE (Cotisation Foncière des Entreprises), a local business tax. In my own experience this has been around €400 a year, but there is no standard national bill. Exemptions and reductions can apply, including rules for small activities and the first year of operation.

Social contributions are another separate issue. The answer can differ depending on your country of residence, social-security affiliation, annual receipts and whether the rental activity is treated as professional or non-professional. Micro-BIC is a tax calculation regime; it does not automatically mean you must set up a micro-entrepreneur business.

 

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So is it worth renting out your French property?

For many owners, absolutely!

Owning a second home in France costs money whether you rent it out or not. The property taxes, insurance, maintenance, gardening and other bills don't disappear simply because the house is standing empty.

As our examples demonstrate, the French tax bill on rental income may be considerably less than owners initially imagine. And depending on your circumstances, the micro-BIC or régime réel system could help reduce the amount of tax you pay.

But I think there is a bigger point here. Don't become so obsessed with minimising your tax bill that you forget about maximising your rental income.

A combination of profitable summer holiday rentals and genuine longer-term winter lets could make a significant contribution towards your annual property costs. It also means your house is occupied, heated and looked after during the quieter months.

My advice is simple: speak to a good French accountant, explain how you intend to rent your property throughout the year and ask them to compare the available tax arrangements. A little professional advice at the beginning can save you a great deal of money and trouble later.

And remember, the objective isn't to pay no tax. It's to make your French property work for you.

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For more practical advice on owning, renting and managing a property in France, take a look at these guides.

Editorial note: This guide reflects French tax rules published for 2026 and is intended to help foreign property owners understand their general obligations. Individual circumstances, rental arrangements and tax residency can affect the outcome. Always seek advice from a qualified French accountant before making tax decisions.

Official French tax information: French rental tax regimes | BOFiP tax guidance | Non-resident furnished rental obligations