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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 Costs		(12,780)2	(51,120)2	(72,000)3
= Taxable Income		5,220	20,880	72,000
Income Tax Rates
Tax Rate4	20%	1,044	4,176	14,400
Annual Income Tax Due		€1,044	€4,176	€14,400
Tax Due as % of Gross Income		5.80%	5.80%	10%
Thanks to:

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 17, 2008.

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 (€80,000 as from 01 January 2009). This also allows offsetting 71% 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 (€80,000 as from 01 January 2009). Therefore, the costs are assumed to be around 50% of the gross income.

⁴ The maximum income tax rate for nonresidents is 20%.

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