Paying Taxes on Rental Income from Your Second Home in Southern France

If you own a second home in Southern France and rent it out, it’s important to be aware of your tax obligations regarding rental income. Here are some key points you should know:

Tax Rates

In France, rental income is classified as ‘bénéfices industriels et commerciaux’ (BIC). The applicable tax rate depends on your total rental income and can vary based on your personal circumstances. It’s advisable to consult a tax advisor to assess your specific situation and determine the correct rate. Navigating this in a foreign language can be challenging, but Q Home collaborates with advisors fluent in English and French to help you manage your affairs in your preferred language:

  • RFN
    Tax and legal advice, accounting, and consulting for foreign businesses and individuals with French activities. A highly professional firm offering services in three languages (Dutch, English, and French).
    RFN – Fiscal and legal advice, accounting and consulting.
  • Frank van Eig (Lorgues)
    Mr. Frank van Eig is a tax lawyer with extensive experience in French legislation. He has been living and working in Lorgues for years and speaks English, Dutch and French.
    Tel: +33 (0)4 98 10 41 45, Mobile: +33 (0)6 75 03 45 23
  • Mr. Albert Mulder
    Dutch-French tax advisor specializing in:

  • Maxime Lepoutre Draguignan
    Cabinet d’expert comptable à Draguignan

Mandatory Declaration

You are required to declare your rental income to the French tax authorities, even if you are not a French resident. This must be done using the non-resident tax forms (Formulaire 2042 NR). Make sure to have all necessary documentation and supporting evidence to provide accurate information.

Social Contributions

In addition to income tax, you may also need to pay social contributions on your rental income. These contributions include coverage for healthcare and pensions. However, if the property is a second home, these contributions may not apply because you already pay social security contributions in your home country.

Stay Compliant

It’s essential to fully understand your tax obligations concerning your rental income in Southern France. By taking the right steps and seeking professional advice, you can ensure you remain compliant and avoid unpleasant surprises.

Important Note

At Q Home, we are unable to provide tax advice for two main reasons:

  1. Tax laws and regulations are subject to frequent changes.
  2. Each property owner’s tax situation is unique, making it impossible to provide accurate general advice.

We recommend consulting one of the professionals listed above to ensure your tax matters are handled correctly.