French Tax declaration for rental income - non-residents

If you own property here in France and derive rental income through it, it’s necessary to file a Tax Declaration for a non-resident. The law says to file, and it is especially necessary if the funds are deposited in his French bank account. If the property is financed, there would probably be no tax to pay. Interest and expenses are fully deductible.

Bonapart would strongly advise you to file and if you would like us to recommend a Tax specialist you can put your house in order with them now and avoid excess preparation time (and therefore fees) accumulating at a later stage.

Renting out an apartment or house in France always generates French income that is taxable in France. This is true even if the owner and tenant are American or UK/EIRE residents, and the payment is made in dollars in the U.S or Sterling etc. Now, one may ask, "how would the French tax inspector know that the place is rented to start with?" Just keep in mind that there are in fact tell-tale signs, such as the Taxe d'habitation applying to a secondary residence, the electrical meter in the owner’s name and high electricity consumption most of the year – not to mention the Gardien(ne) who figures out the situation within a couple of months after the rental business has started. Believing you are safe from tax inspectors because you have never had a problem gives you a false sense of security. Once tax cheating has been identified, the French tax inspectors tend to wait until it has been going on for three years before striking. This is because three years is the time period for the statute of limitations and they want to make the audit worthwhile.

You have been warned!

Disclaimer: Tax law is complex and every effort has been made to offer information that is current, correct and clearly expressed. The information in this summary is intended to be no more than a general overview of the position and certain details have been deliberately omitted. The contents of this page should not be taken as an authoritative statement of French tax law and practice. Neither the author nor the publisher are responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. This text is not intended to render legal, accounting or tax advice. Readers are encouraged to seek professional advice concerning specific matters before making any decision.

Comments

[Teresa Etim-Gorst]

What is the number or name of form for non resdident tax micro bic? Thanks. Where do I find form online, can't figure out gouv.impots website.

[suzanne]

Hi teresa
If you are non-resident, then you should contact:

Centre des impôts des non-résidents (CINR)
TSA 10010 - 10 rue du Centre - 93465 Noisy le Grand cedex
Telephone : 01 57 33 83 00 - Fax : 01 57 33 83 50
E Mail: nonresidents@dgi.finances.gouv.fr

You need to complete and return your tax return by 30 June each year, for income received in the previous calendar year ending 31 Dec.

[Carol Cumella]

Hi Susie,just spoke to you. We have had a request for 36,000 euros! We returned a form in Jan 09 saying that we don't let out the property and that it is solely for our own holiday use.Will scan in papers this evening.Their letter is dated 24mars ,we received it 18 April and they are giving us 30days to respond -presumably from date of their letter.thanks carol

[susie hollands]

we're on it carol, happy to help!

[Juan]

Good morning,
Just one doubt. Which is the deadline to present a tax return for benefits obtain in June 2005? Can I present it the 30 June of this year?
What happened in the same case whith a tax return of 2006?
Sorry for my english and thanks in advance.

[susie hollands bonapart consulting]

For 2008 income, the deadline is June 30th 2009 for a list of countries, including North America and Europe. We have a document we can share with you. Concerning income of 2007,2006, ...etc, the tax form 2042 must be used with added mention "Déclaration rectificative". It is important not to declare older income with 2008 income. Of course, concerning the declaration rectificative, there will be a penalty.............

We are not professional tax advisors not do we have the status to advise but this is purely for information. You should consult a specialist.

[amit nangia]

Good afternoon,
Thank you for some of the earlier posts as they were quite useful.
We are also facing the same problem as some others.
We need to file taxes for years 2005-2008 and are non-residents in France (live in US). While we have been able to find the 2042 and 2044 tax forms for the calendar years 2006-2008, we are unable to do so for 2005 (the first year of property ownership in France). Can you kindly advise on how to file taxes for income received in year 2005 or to locate these forms?
If a form is not available anymore, should we simply file a statement of income and expenses for this year ?

Thank you in advance.