Property Owners and Tax Returns

Posted by admin in Accounting | January 6th 2009

We are often asked by Non-Resident Property Owners how taxation works, how returns should be done and in what time frames. We hope that this post will give a little bit of direction.

Everyones personal affairs are slightly different, and we always recommend that an ‘Expert Comptable’ is used. ESPECIALLY for the first one or 2. It can be done oneself, but we suggest that it is better to get everything straightend out properly and to learn from it so that one can do them properly oneself in the future!

Key points follow:

Annual Tax Returns, must be submitted the following year by the end of May for all non resident owners.

If you get someone else to do it for you, quite a bit of information is required in order to do the return, i.e.  dates of birth, place of birth, married, full address, childrens details etc.  Also if there is  any other income generated in France.  If you do it yourself, you will still need to provide this information.

2 Forms need to be collected from the Tresor Public (Tax Office).  Then you need to work out the income generated. If it is rent, it goes in a particular income box, if there is other income, it has to be entered in a separate box.

The finished return then has to be posted back to the Tresor Public in Paris before the end of May.

The Tresor usually reply by August with a Tax Assessment, and payment date for that is 15th September.  All payments can now be done online to the Tresor.

What you do with this return depends on which juristiction you are in … example being that British people should incorporate it with their UK Tax Return, as proof that they have paid tax on their French income in France. Other regimines may have other rules, and we cant advise on them

In terms of how much you get taxed and what you can deduct, it very much depends on individual circumstances and variable factors such as how much the income was and if you have any other income in France and wheter you are Tax domiciled in France or another country, and if in another country whetehr they have Tax Treaties with France.

The simple solution which is applicable probably for 90% of Foreign Property Owners though, is that there is a special tax regimen for those who rent out their property on a Short Term basis (Location Saisonniere) which is that 71% of income may be declared as cost, with no demonstrable proof required and the remaining 29% declared as Taxable Income. This makes things simple!

If you require the services of an Accountant in France, we are happy to make introductions for you.

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