Income Tax on Letting Income

[baralbion]

I may want to let a property in France once I have bought one. Initially I should be running the letting as a UK resident. I understand I would have to pay French tax on the income. While I may not relish the prospect I will do it if I have to. What really bothers me is grappling with an unfamiliar tax régime. How difficult is it, even for someone who speaks French fairly well?

[Nick Trollope]

French tax forms are (IMHO) easier than UK ones - just put in a recipts figure, plus anything you want to claim against - they tend to fill in the rest for you (the second time). Or you could use an accountant (FRench) who would do it for about 450€.

In truth, most "tax payers" in France pay no tax (over 50% IIRC).

 

[TarnGranny]

I'm not sure that you would have to pay tax in France on that income whilst you are a UK taxpayer. Why not ask your tax office, or try this very useful link: http://taxationweb.co.uk/

My accountant charges me 80 euros each year for doing all my business and personal tax returns here. It is very simple and only takes him about an hour each time - this seems to be a standard charge in my area.

[Pickles]

As Nick says, the forms are straightforward and my understanding is that if you opt for the micro regime (ie your total French income is below 15K (check this number) and you don't have significant outgoings) then there is a straightforward 40% deduction from the gross income - but you can't claim this in addition to other offsets; it's either one or the other - the other being "real" cost offsets.

IIRC, as a non-French resident, bear in mind that you are treated differently from a French resident and will therefore have to pay a minimum of 25% tax on the taxable income (ie after the above deductions but not deducting any personal allowances), unless you can demonstrate to the French tax authorities that if your whole worldwide income were taken into account and treated as if you were a French resident, the resultant tax percentage would be lower than 25%, in which case you would be taxed at this lower percentage.

 

[Blanche Neige]

baralbion

 

Micro-bic is the way to go and yes you do need to declare earnings from lettings in both countries. It's not that difficult especially if your French is fairly good. If you get stuck you can visit the Hotel des Impots and they will assist you.

Bonne chance