Living inthe UK but renting out in france.

[Smiley]

Hi there I wonder if anyone can help me.

I own a property in France which I purchased 2 years ago. I have been using it solely as a holiday home for my family. I got a lot of interest from family / friends that wanted to rent it and so I have decided to let it for some of the weeks to help cover the running costs. I plan to extend this beyond just family and friends and have started to advertise it. I live in the UK and will be receiving any payments in the UK. Obviously this will have to be declared over here for tax purposes. My Insurance broker is arranging international letting insurance for me so that's all covered. My question is do I need to declare anything to the French authorites, I am paying tax in my own EU country so I don't think that's a problem but is there any other legislation I don't know about?

Many thanks in advance.

[BJSLIV]

You should complete a tax form in France and declare any income earned from renting your property. Any tax paid in France will deducted from any  tax due in the UK.

[Smiley]

Hi BJSLIV, will this throw up major complications?

I pay all the bills through my UK accounts an all income will come to the UK, I have also paid out to renovate the property over the last 2 years.

Can I claim for furniture, renovating costs, the caretaker, gardener, electric and heating costs etc. etc?

[Liz]

With a single property the usual way is to make a declaration of the gross income.  A percentage of this is then deducted by the tax authorities and you pay tax on the balance.  You can then offset the amount paid to the French against tax you have paid in the UK.

Liz