As a non-tax resident in France owning a furnished secondary residence available for rent, you are subject to specific fiscal and social obligations.
Law No. 2024-1039 of November 19, 2024, has modified certain thresholds and allowances, applicable from rental income received as of January 1, 2025.
Here is a summary of what you need to know to stay compliant with French regulations.
1. Rental Income Is Taxable in France
All income generated from renting out furnished property located in France is taxable in France, even if you are not a resident, in accordance with international tax treaties.
The Micro-BIC Regime
This simplified regime applies only if:
-
Your annual rental income is less than €15,000,
-
The property is not classified as a furnished tourist accommodation,
-
And it is not located in a high-demand (so-called “tense”) area.
If so, you benefit from a flat-rate allowance of 30% on your gross rental income. However, you cannot deduct actual expenses.
The Standard (“Régime Réel”) Regime
This becomes mandatory if your income exceeds €15,000, or may be chosen voluntarily. It allows you to deduct real expenses (e.g., renovation work, depreciation, property management fees, etc.), often resulting in a more favorable tax situation.
If you live outside the European Union, European Economic Area, or Switzerland, you are required to appoint an approved tax representative in France.
2. Social Contributions
As a non-resident, you are liable for French social contributions on rental income at the following rates:
-
17.2% if you reside outside the European Union, Iceland, Norway, Liechtenstein, or Switzerland,
-
7.5% if you reside in one of these countries, thanks to an exemption from CSG and CRDS contributions.
These charges apply in addition to income tax, which is subject to a minimum rate of 20% for non-residents.
3. Annual Tax Declarations
Each year, you are required to file:
-
Form 2042-C PRO, to report income under the BIC regime,
-
Form 2042-NR, specifically for non-residents,
-
And if you are under the “régime réel”: Form 2031 and its annexes.
If you live outside the EU/EEA/Switzerland, don’t forget to appoint an approved tax representative.
4. Social Security Obligations (URSSAF)
If your furnished rental income exceeds €23,000 per year, you may be considered a professional furnished rental landlord (LMP).
This implies:
-
Obtaining a French SIRET number,
-
Affiliation with the French Social Security system (via URSSAF),
-
Paying social contributions, typically around 35% of your net rental income (which are deductible for tax purposes).
Even as a non-resident, URSSAF may consider you liable, particularly if you reside within the European Union.
In Summary
If you rent out a furnished second home in France, you are liable for French tax and social contributions, even as a non-resident.
-
You may benefit from the micro-BIC regime (with a 30% allowance) if your rental income is under €15,000.
-
Beyond that, the real tax regime allows you to deduct actual expenses.
-
Social charges apply at 17.2% or 7.5%, depending on your country of residence.
-
If your income exceeds €23,000/year, you may need to register with URSSAF and pay social contributions.
-
And if you reside outside the EU/EEA/Switzerland, the appointment of an accredited French tax representative is mandatory.
Our Agency Can Assist You
At Air Property Provence, we support non-resident owners in the seasonal rental management of their secondary homes in France.
We offer personalized and professional assistance, working hand-in-hand with specialized legal and tax partners.
Feel free to contact us here to learn more.
Header photo – Bastide Blanche in Lourmarin:
View the listing
