You would all have already received your income tax bill and some of you had the unpleasant surprise of having social security contributions deducted from UK rental income. If you are not sure, send me a scanned copy of your income tax form and I will check it for you. As a result, even if you are not a resident, you must file with the French authorities a tax return of your rental income in France (as well as any other French income). It is important to remember that there is no reporting threshold, which means that any profit must be reported even if it is not taxable. With the complexity of French tax requirements, forms and returns, it can be quite confusing to understand all your rights, obligations and permitted exemptions. For this reason, finding a French property tax specialist can save a lot of time and stress. Here are tips on how to reduce property taxes for foreign homeowners. If you have rental income from the UK, you should also see a line called “Property Revenue”, and depending on income tax, they charge you social charges on it and return it directly to you below. During the property: If the property is not rented, keep good records. If you rent it, you will have to file a French tax return and keep detailed receipts on the income and expenses of each rental property.
In addition, you must declare the income to the tax authorities of your home country. I guess I will get a 30% allowance on income from France. It is not necessary to complete Form 2044, which refers to rental income above the micro threshold and/or for which you claim “actual” expenses for which you have kept proof (invoices, etc.). For the 2019 French tax return (2018 Income), we have created some basic guidelines for those who wish to declare rental income from furnished rentals, which you can find at the following address: 2019 Furnished Rental Income Tax Return. The basic premise that applies in most jurisdictions in Europe is that residents of that jurisdiction will be taxed on their global income and profits unless this treatment is changed by a double taxation treaty. Thus, if you are a resident of France, you are required under French law to declare your worldwide income, and this is subject to French`s income tax (and the dreaded 15.5% CSG, CRDS, etc., colloquially known to the British community as “social security contributions”). The double taxation agreement aims to prevent you from being taxed more than once with the same income. In the case of rentals, a non-resident`s net income is subject to a minimum income tax rate of 20%, unless the taxpayer can prove that his effective tax rates (on his worldwide income) would have been less than 20% if he had resided in France (which is unlikely). This price applies to both furnished and unfurnished rentals. In other situations, the capital gains tax would be 19% plus 17.2% of social security contributions on taxable profit, which would give a total tax burden of 36.2%. When it comes to rental income in the UK, if the amount is less than €15,000 and you want to use the simple micro-focus system that offers a set cost reduction of 30%, you need to specify the gross income of the rental property in the UK.
Tax losses can be credited to all personal income up to €10,700. Note that if interest on a loan to finance the purchase is claimed as a tax loss, it can only be deducted over ten years. Important: Foreigners who reside for tax purposes in countries with which France does not have a double taxation agreement are subject to French income tax on a fictitious basis of income tax (forfataire income) in accordance with Article 164C of the French Tax Code (whether or not they actually derive income from real estate in France) (this applies independently) up to three times the nominal rental value of the apartments they have in France (this applies independently). whether or not they derive income from real estate in France). The previous law provided that French tax rules essentially stipulate that social security contributions are to be considered part of the income tax system, and stipulate: unfurnished rents are taxed as “real estate income” under income tax. . . .