Letting a property in France can provide a good return on the property investment, whether it be short term lets to cover those months when you do not want to occupy the property, or long term rentals for a property you do not use yourself.
However 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.
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 also 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, for example, 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 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 advise you where appropriate.
The team comprises French and UK tax advisers who are experienced in advising on the tax position of property investment in France.
We can assist you in filing your French income tax returns and 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 the tax authorities 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.
We can also help you file any claim for the repayment of undue taxes such as French social surcharges you may have been liable to on your rental income.