France: Worked Example of Tax on Rent
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Tax Example: Rent
| Non-resident couple's joint monthly rental income1 | €1,500 | €6,000 | €12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Costs2 | (12,960) | (51,840) | (72,000)3 | |
| = Taxable Income | 5,040 | 20,160 | 72,000 | |
| Income Tax Rates | ||||
| Flat Rate4 | 25% | 1,260 | 5,040 | 18,000 |
| Annual Income Tax Due | €1,260 | €5,040 | €18,000 | |
| Tax Due as % of Gross Income | 7% | 7% | 7% | |
Thanks to: |
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on October 3, 2006.
Notes
1 The property is jointly owned by husband and wife.
2 The micro-BIC assessment can be utilized if the rental income does not exceed €76,300. This also allows offsetting 72% of the gross income as expenses. This assessment is applied in the first two cases.
3 In this case, the micro-BIC assessment does not apply because the rental income exceeds €76,300. Therefore, the costs are assumed to be around 50% of the gross income.
4 The maximum income tax rate for non-residents is 25%.
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