A basic rule of life is that income is taxed. Somehow somewhere. That’s the basic rule anyway. Some people seem to manage to use the rules to their advantage but that isn’t what this brief article is about.
So if you have a second home in France then you rent out then you will have to pay tax on the income. It doesn’t matter if you live in France or elsewhere. The tax should be paid in France in the first instance. If you live in the EU then the double taxation rules apply. This means that if you pay less tax to the French authorities than you will have done in your home country then you should pay the difference in your home country.
- If you get an income from a second home in France then you will need to submit a tax return in France.
- If you live in the UK then you will need to declare the income there too (but the double taxation rules apply).
The basic rate of tax on this rental income in France is 20%. Since January 2012 there has been an attempt to collect a further 15.5% in Social Charges on rental income and Capital Gains too. This has recently been deemed illegal by the European union.
Anyone who paid this extra tax in the meantime is entitled to a refund.
There are a couple of different regimes under which you can register yourself for tax purposes in France. They are quite different and the best way forward is often not clear to the uninitiated. I would suggest that the best option is to speak to an accountant. In the Haute Savoie we would be happy to introduce you to our English speaking contacts at SAREG they will be available for an initial consultation at their offices in Les Gets or St Pierre en Faucigny.