UK tax considerations having a French property investment

Letting can prove to be costly if you fail to comply with tax obligations in France and your country of residence. It is important that you receive the right legal and tax advice when considering a French property as a form of investment.

Tax regimes in France and UK

France has the right to collect tax on your lettings income from a property in France. Annual tax returns must be filed and any tax due paid, otherwise the French tax authorities can levy penalties and interest.

If you are UK tax resident you must include the lettings income on your tax return filed with HM Revenue & Customs. Double tax relief rules exist to avoid you paying a double charge to income tax in both countries.

The tax regimes in France are different, depending on whether you let your property furnished or unfurnished. Where a choice of regimes is available, it will be important to choose the one that will be the most advantageous for you.

Some other French tax considerations may have to be taken into account other than French income tax, such as local rates, taxes on foreign entities owning French properties, French social charges.

We can liaise with your French Notaire to ensure you receive the best advice where appropriate.

Renting French property and French tax

Everyone that is renting out a property in France must declare his annual income to the French tax authorities. We can assist you in starting your rental activity in France and manage your tax declarations obligations making the process easier for you.  Our services include:

• Helping you choose your taxation scheme;
• Submit your French income tax return;
• Calculation of French tax and social security contributions;
• SIRET* Registration – mandatory for furnished rental only;
• SIRET Deregistration – when you stop renting your property on a furnished basis.

Choose Furley Page for French property advice

The team comprises UK tax advisers who are experienced in advising on the tax position of property investments.  We can assist you in filing your UK self-assessment tax returns to report your taxable rental income. We will tell you the deadline dates for filing and paying the tax and correspond with HMRC when necessary.

If double taxation arises we can also claim the tax relief you are entitled to in the UK.

If you have a UK accountant advising on your UK tax affairs, we are happy to liaise with them to provide the information required for completing your UK self-assessment tax return.

Contact Sharon Wilson-Dutin or Deborah Vaysse to find out how we can help you.

Notes*

SIRET : Système d’identification du répertoire des établissements – Establishment directory identification system
SIREN : Système d’identification du répertoire des entreprises – Company register identification system