The tenancy agreement in France is formally called a contrat de location but more commonly is called a bail. French law does recognize a verbal tenancy agreement so be careful what you say to prospective tenants. In the case of a verbal tenancy agreement, the courts only recognize the bare minimum of clauses. A clear and concise, written agreement is always preferable. (more…)
French law provides a great deal of protection to tenants from eviction, so select your tenants carefully. (more…)
You have two options when it comes to finding a tenant, advertise the property yourself or hire a professional. As a foreign investor, hiring a professional is the easiest solution. (more…)
French lets typically come in two types. The long term, unfurnished let and the short term, furnished let. Each type of let will come with its own unique type of renter. (more…)
In France, a landlord can protect their rental income by taking out an insurance policy against non-payment of rent. This insurance is called l’assurance loyers impayes. The cost of the policy is generally between 3% and 5% of the rent amount and will not cover the first months rent. Some rent policies also cover the cost of legal proceedings against a tenant who is not paying, but this feature may cost extra. Additional options may include coverage for the loss of rent if the property is vacant, damage to the property by a tenant, and coverage in the event the tenant should die. The expense of rent insurance is tax deductible. (more…)
When most people think of France, they immediately think of Paris. For centuries, Paris has been the capital of culture throughout the world, first in everything from fashion to art. Living in or near Paris is the reason many people decide to move to France. To live in Paris is to be in the heart of a country steeped in a rich historical heritage while living on the cutting edge of modern world. (more…)
One of the perks that can come from buying property in France is living in France. There are many advantages when it comes to living in France as opposed to other countries around the world. From urban sophistication to charming country living, France has something for everyone. Breathtaking landscapes, historic buildings, quaint villages, bustling metropolises and a rich quality of life; France offers all this and more for anyone looking to escape the mundane and experience life at its fullest. (more…)
The French income tax system is complex, and foreigners in France are subject to a relatively heavy tax burden. In certain circumstances, foreigners may elect to become French citizens to gain tax relief.
Tax residents in France are required to pay tax on income earned worldwide (impot sur le revenue). They declare income earned during a calendar year before March 1 of the following year. Tax declarations are made to the tax inspector (Inspecteur des Impots) and the appropriate tax is paid to the public treasury, the Tresor Public, or to the local Centre des Impots. (more…)
Generally, a French tax agent’s fees are calculated by a percentage of the sale price for a property, rather than the gain. Fees start at 0.5% of the sales price and oftentimes increase another 0.4%, so typically fees are 0.9% plus VAT.
When a property is sold, capital gains tax applies at a fixed rate of 16% for those who are residents of another EU member state, 27% for those who reside in France, and 33.33% for those residing outside of the EU, unless a tax treaty stipulates otherwise. (more…)
Latest Laws for French Tax Residents.
Tax credit is available for the first five years of property ownership to French tax residents who paid interest on mortgages for primary French residences in 2007, whereby the compromise was signed after August 22, 2007. Credit is currently 20% of the loan amount and is limited to 750 pounds per year for a single, disabled person, also widows and divorcees, or 1500 pounds for married couples and PACS partners, wherein one of the partners is disabled. Those who have no tax liability receive a refund from French tax authorities. (more…)
