Income tax on a French rental investment
A practical guide for non-residents buying a property in France to let. It covers the two common structures, how each is taxed, the minimum rate that catches overseas landlords out, and three worked examples on identical assumptions.
The figures on this page are for rental income earned in 2025 and declared in 2026. France taxes a non-resident only on French-source income — but a minimum rate applies, explained below.
Two ways to hold a French rental property
They are taxed under different rules. Which suits you depends on the property, how it is let, and your own circumstances — this is a decision to take with an accountant, not from a table.
- Approach 1
Traditional buy-to-let — unfurnished
An unfurnished long-term let. The rent is taxed as revenus fonciers. You are not taxed on 100% of the gross rent: there is a relief on the way in.
- Micro-foncier, where it applies: a 30% flat allowance, available while gross rental receipts stay under EUR 15,000 a year
- Regime reel instead: deduct the actual allowable expenses — loan interest, management, insurance, works
- You choose the more favourable of the two, within the rules
- Approach 2
French leaseback — managed, furnished
A furnished property let to a professional operator under a commercial lease (bail commercial). Furnished letting is taxed as BIC, not revenus fonciers.
- Under the regime reel, allowable expenses are deductible and the building and furniture can be depreciated
- Leaseback is a letting arrangement, not a tax regime of its own
- Depreciation is a feature of furnished letting generally, not something unique to leaseback
Both are held by you as the freehold owner. The difference that matters for tax is furnished versus unfurnished, which decides whether the income is revenus fonciers or BIC.
Depreciation, accurately
Under the furnished regime reel, the building — excluding the land, which is not depreciable — and the furniture can be written down over their useful lives. That depreciation is an accounting expense: it reduces the taxable rental profit, subject to the accounting conditions being met and the figures being drawn up properly.
What it cannot do is create a loss, or make an existing loss larger. Depreciation that would push the result below zero is not lost — it is carried forward and set against future rental profits from the same activity, without a time limit. So in a strong year it can bring the taxable profit close to nil; it does not generate a refund.
This is not guaranteed tax-free income, and a leaseback is not a guaranteed return. The rent depends on the commercial lease and on the operator continuing to pay it, so the terms of that lease and the financial strength of the operator matter as much as the tax treatment.
Depreciation and the resale gain: for furnished lets, depreciation deducted since 15 February 2025 is added back when the capital gain on a later sale is worked out, which increases the taxable gain. Certain categories of managed residence are excluded from this add-back by law — but not every leaseback falls into an excluded category, so do not assume yours does. Check the position for the specific property before you rely on it.
The minimum rate for non-residents
The single point overseas landlords most often miss.
A floor of 20%, then 30%
French-source net taxable income of a non-resident is taxed at a minimum rate of 20% up to EUR 29,579, and 30% on the part above that, for mainland France. This applies even when the progressive bands alone would give a lower figure, or none at all. It is a floor, not a universal schedule.
The taux moyen can be lower
You can ask for the taux moyen instead: the average rate your worldwide income would bear under the French bands. If that is below 20% or 30%, the lower rate applies. It requires declaring your global income to the French authority, and it is not automatic — you claim it.
Income year, declaration year
Rental income earned in 2025 is declared in 2026 and taxed on the 2025 rules. The examples below use the 2025 figures.
Social contributions on the rent
Rental income also carries prelevements sociaux, on top of the income tax. The rate depends on how the property is let and on your social-security position — not on where you live or your nationality.
- Unfurnished let — 17.2%
- CSG 9.2%, CRDS 0.5% and the solidarity levy 7.5%, on the net rental income.
- Furnished let taxed on wealth income — 18.6%
- CSG 10.6%, CRDS 0.5% and the solidarity levy 7.5%. This is the rate for furnished letting that falls under prelevements sociaux sur le patrimoine.
- Solidarity levy only — 7.5%
- If you are affiliated to a health-insurance scheme in the EEA, Switzerland or the United Kingdom and are not a dependant of a compulsory French scheme, CSG and CRDS do not apply and only the 7.5% solidarity levy remains. Being resident abroad is not enough on its own — the test is your social-security affiliation.
- A different case: professional social contributions
- Some furnished-letting situations are treated as a professional activity and fall under social-security contributions (cotisations sociales) rather than prelevements sociaux. That is a separate regime with its own rates — worth checking whether it applies to you.
Three worked examples
Same assumptions across all three: EUR 12,000 of annual rent, a non-resident to whom the 20% minimum rate applies, no more favourable taux moyen, no other French income, and meeting the conditions for the 7.5% solidarity levy only.
Unfurnished, micro-foncier eligible
- Annual rent
- EUR 12,000
- 30% allowance
- - EUR 3,600
- Taxable base
- EUR 8,400
- Income tax at 20%
- EUR 1,680
- Solidarity levy at 7.5%
- EUR 630
- Total
- EUR 2,310
Unfurnished, regime reel
- Annual rent
- EUR 12,000
- Deductible expenses
- - EUR 4,000
- Taxable base
- EUR 8,000
- Income tax at 20%
- EUR 1,600
- Solidarity levy at 7.5%
- EUR 600
- Total
- EUR 2,200
Furnished leaseback, LMNP regime reel
- Annual rent
- EUR 12,000
- Deductible expenses
- - EUR 4,000
- Allowable depreciation
- - EUR 5,000
- Taxable base
- EUR 3,000
- Income tax at 20%
- EUR 600
- Solidarity levy at 7.5%
- EUR 225
- Total
- EUR 825
The depreciation figure is illustrative — the real amount is set by an accountant from the purchase price, the split between building and land, and the furniture. These are calculation examples, not yield forecasts. They exclude other taxes, purchase costs and any tax due in your country of residence. The tax treaty between France and your country decides how double taxation is relieved; it does not guarantee that no further tax is due abroad.
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Verified on 10 September 2026 against service-public.gouv.fr (bareme), impots.gouv.fr (modalites de calcul for non-residents, prelevements sociaux on rental income, regimes d'imposition, and property capital gains). This page is general information, not tax advice: your position depends on the property, your residency, your social-security affiliation and your tax treaty, so take professional advice before acting.