French Tax for Non-Residents: An Overview
Owning property in France as a non-resident comes with a series of French tax obligations, regardless of your country of residence. France taxes foreign owners based on where the property is located (territoriality principle), not on their tax domicile. Most European countries have signed bilateral tax treaties with France that prevent double taxation, but these do not exempt you from filing in France.
The taxes you may face include: taxe foncière (annual, mandatory property tax), taxe d'habitation on secondary residences (annual, with possible surcharge), income tax on rental revenue if the property is let (declaration in France), IFI (Impôt sur la Fortune Immobilière – wealth tax) if your French real estate assets exceed 1.3 million EUR, and capital gains tax on sale.
Taxe Foncière
The taxe foncière is owed by every property owner in France, resident or non-resident. It is calculated on the property's cadastral rental value multiplied by rates set by local authorities. Bills arrive in October and must be paid before 15 October (or 20 October for online payment).
On the French Riviera, amounts vary by commune. As a rough guide for 2024: Cannes: approximately 800 to 2,500 EUR for an 80 to 120 m² apartment, Nice: 600 to 2,000 EUR, Antibes: 600 to 1,800 EUR. For a 200 m² villa with land in Mougins, expect between 2,000 and 5,000 EUR depending on the cadastral value.
The taxe foncière is deductible from rental income if the property is let (see rental income section). It is not deductible if the property is used exclusively for personal occupation. As a non-resident, you receive your bill by post at your French address or can register on impots.gouv.fr to receive online notifications.
Taxe d'Habitation on Secondary Residences
Since the taxe d'habitation on primary residences was abolished in 2023, only secondary residences remain subject to it. As a non-resident owning a villa on the French Riviera that you do not occupy year-round, your property is classified as a secondary residence and subject to this tax.
Several French Riviera communes have introduced a surcharge on the taxe d'habitation for secondary residences, ranging from 5% to 60% depending on the commune (Nice voted a 60% surcharge in 2023). This surcharge applies in areas classified as "under housing pressure" (zones tendues).
The taxe d'habitation on secondary residences is calculated on the same cadastral rental value as the taxe foncière. It is not deductible from rental income.
Rental Income: BIC or Property Income?
If you let your French Riviera property (furnished holiday rental via Airbnb/Booking.com, or unfurnished long-term rental), the income must be declared in France.
**Furnished rental** (the most common case on the French Riviera): income is taxed under the BIC (Bénéfices Industriels et Commerciaux – industrial and commercial income) category. Two available regimes:
Micro-BIC: applicable if your annual receipts are below 77,700 EUR (2024 threshold). A flat 50% deduction is applied. You declare 50% of your receipts as taxable income. Simple but not always optimal.
Actual expenses regime (régime réel): you declare actual receipts and deduct all real costs (concierge fees, taxe foncière, insurance, repairs, depreciation of the property and furnishings, mortgage interest). This regime is usually more advantageous when your real costs exceed 50% of receipts.
**Unfurnished long-term rental**: income taxed under the revenus fonciers (property income) category. Micro-foncier regime available for income below 15,000 EUR with a 30% deduction. Above that, the actual expenses regime applies.
**Tax rates for non-residents**: non-residents are taxed on French rental income at a minimum rate of 20% (or 30% above 27,478 EUR of income). Social charges of 17.2% are added, except for EU/EEA residents who benefit from a partial exemption (7.5% solidarity levy instead of 17.2%).
SCI vs Direct Ownership: Pros and Cons
**Direct ownership** is the simplest structure administratively. You own in your own name. Disadvantages: complex inheritance planning (French succession law, forced heirship rules), unlimited personal liability.
**The SCI (Société Civile Immobilière)** is the most widely used structure for foreign owners in France. It offers several advantages: easier succession (transfer of shares rather than sale of the property), inheritance optimisation (you can progressively gift shares to your children through regular donations), ability to include multiple partners, and in some cases optimised tax and accounting management.
An SCI is subject to income tax (IR) by default (fiscal transparency: each partner is taxed on their share of results) or can opt for corporation tax (IS), which may be advantageous in certain wealth planning scenarios. The SCI must file an annual tax return (form 2072) and maintain accounts.
Cost of creating an SCI in France: 1,500 to 3,000 EUR (notaire and lawyer fees). Annual running cost: 500 to 1,500 EUR (accountant).
An SCI is not right for every situation. Consult a notaire and a tax adviser specialising in international clients before choosing your ownership structure.
The Non-Resident Tax Return (Form 2042)
Any non-resident property owner in France must file a French income tax return (form 2042 plus 2042-NR) each year, even if the property is not let. If the property is let, you add form 2044 (property income) or form 2031 (BIC actual expenses regime) as applicable.
The filing deadline is in May-June each year (non-residents receive an extended deadline compared to residents). The return can be filed online at impots.gouv.fr after creating a personal account.
If you do not yet have a French tax number (numéro SPI), you must request one from the Service des Impôts des Non-Résidents (SINR) in Noisy-le-Grand.
Bilateral Tax Treaties
France has signed tax treaties with the vast majority of countries from which French Riviera buyers originate. These treaties define which country has the right to tax which type of income, and how to avoid double taxation.
Key cases: United Kingdom: the 2008 Franco-British convention. French property income is taxable in France. You also declare in the UK but benefit from a tax credit or exemption depending on the income type. Belgium: the 1964 revised convention. French property income is taxable in France only (exempt in Belgium, with progression reservation). Sweden: French property income is taxable in France. Tax credit in Sweden. United States: American citizens remain subject to US taxation on worldwide income, but a foreign tax credit (Form 1116) prevents double taxation.
In all cases, consult a bi-national tax adviser before structuring your acquisition or rental activity.
IFI (Impôt sur la Fortune Immobilière – Wealth Tax)
If the net value of your French real estate assets exceeds 1.3 million EUR on 1 January of the year, you are subject to the IFI. For non-residents, only assets located in France are assessed (unlike French tax residents, who declare their worldwide assets).
The IFI scale runs from 0.5% to 1.5% depending on asset value. A 30% deduction applies to the value of a primary residence (if you have a primary residence in France). Debts related to the property (ongoing mortgage) are deductible under certain conditions.
Capital Gains Tax on Sale
If you sell your French property, the gain (sale price minus purchase price adjusted for acquisition costs and improvement works) is taxable at 19% plus 17.2% social charges, totalling 36.2%. Progressive allowances apply based on the holding period: full income tax exemption after 22 years, full social charges exemption after 30 years.
For non-EU nationals, a fiscal representative must be appointed for sales above 150,000 EUR carried out by non-EU non-residents.
Our Role at Riviera Luxe Concierge
We are not tax advisers, but we support our owner clients in the day-to-day management of their property, including the administrative aspects of holiday letting: collection and remittance of the tourist tax, rental income declarations, and referrals to accountants and tax lawyers specialising in the international client base on the French Riviera. Contact us to discuss your situation.
