Taxation for expat investors: optimise your tax position in France
As an expat or non-resident, your property taxation is specific: tax treaties, the statuses LMNP and LMP, SCI subject to IS, family SARL, withholding tax, social contributions. Chosen well from the outset, the tax strategy weighs heavily on your profitability.
The essentials
Your rents and your capital gain are taxed in France, even if you live abroad. On rents: income tax with a minimum rate of 20% (30% above €29,579 of net taxable income, 2025 income), plus 7.5% of social contributions if you are affiliated to the social security system of a European Union country, the EEA, Switzerland or the United Kingdom, otherwise 17.2% for unfurnished lets and 18.6% for furnished. On resale: 19% tax on the capital gain plus social contributions, withheld by the notary, with a full exemption after 22 years for the tax and 30 years for social contributions.
How are a non-resident’s rents taxed in France?
Income tax
Progressive scale on your French-source income, with a minimum rate: at least 20 % up to €29,579 of net taxable income, at least 30 % above (2025 income, declared in 2026). If your average rate, calculated on all your household’s worldwide income, is lower, you can ask to have it applied: you then declare that income and must be able to justify it.
Social contributions
7,5 % if you are affiliated to the social security system of a European Union country, the EEA, Switzerland or the United Kingdom, and to no French scheme. Otherwise 17,2 % for unfurnished lets and 18,6 % for furnished (from 2025 income). What counts is your affiliation, not your country of residence.
See how to calculatetax on a non-resident’s rental income.
Other taxes to plan for
Your rents give rise to withholding tax instalments, as for a resident. You also pay property tax (taxe foncière) each year, council tax on second homes (taxe d’habitation) if the property is not let year-round, and for furnished lets the business property contribution (CFE). Finally, if your net property wealth located in France exceeds €1,300,000 on 1 January, you are liable for the real estate wealth tax (IFI), even if you live abroad.
Unfurnished or furnished rental: which regime to choose when you live abroad?
| Regime | When | How |
|---|---|---|
| Unfurnished, micro-foncier | Rents up to €15,000 per year | 30% allowance for costs |
| Unfurnished, actual regime | No ceiling | Actual costs deducted: loan interest, renovation works, property tax… |
| Furnished long-term or classified tourist let, micro-BIC | Revenue up to €77,700 (2025 income) and €83,600 (2026 income) | 50% allowance |
| Unclassified furnished tourist let, micro-BIC | Revenue up to €15,000 | 30% allowance |
| Furnished, actual regime (LMNP) | No revenue ceiling. Above €23,000 of furnished rent per year, have a check done that you remain a non-professional furnished landlord (LMNP). | Costs and depreciation of the property and furniture. Depreciation cannot create a deficit, the excess is carried forward with no time limit. On resale, the depreciation deducted on the home, including before 2025, is added back to the capital gain (sales since 15 February 2025, excluding serviced residences). |
SCI subject to IR or IS: which to choose as a non-resident?
An SCI subject to income tax is transparent: its rents are taxed in the hands of each partner, as property income. It suits unfurnished lets: an SCI that lets furnished above 10% of its revenue moves to corporate tax. An SCI subject to corporate tax pays the tax itself and can depreciate the property. On resale, its capital gain is calculated on the net book value, with no allowance for length of ownership, and profits distributed to partners are taxed a second time, in France by a withholding tax and sometimes in your country. The right choice depends on your project, your horizon and your country of residence, which does not always treat the SCI as France does: each treaty page spells this out.
How is a non-resident’s capital gain taxed?
- 19 % tax on the capital gain, withheld by the notary, plus social contributions (7,5 % or 17,2 % depending on your affiliation).
- Allowances for length of ownership from the 6th year: exemption from tax after 22 years, from social contributions after 30 years.
Our strategies and structures can reduce, or even neutralise, the tax depending on your situation.
Plan ahead now for the capital gain on property of a non-resident.
Does your country have a tax treaty with France?
France has signed a tax treaty with most of the countries where our clients live. It says who taxes your rents and your capital gain, and how double taxation is avoided. IFI and inheritance are covered only by some treaties: each page states what applies to your country.
SwitzerlandWhat applies to your countryRead the treaty →
LuxembourgWhat applies to your countryRead the treaty →
GermanyWhat applies to your countryRead the treaty →
United KingdomWhat applies to your countryRead the treaty →
United Arab EmiratesWhat applies to your countryRead the treaty →
United StatesWhat applies to your countryRead the treaty →
CanadaWhat applies to your countryRead the treaty →
SingaporeWhat applies to your countryRead the treaty →
SpainWhat applies to your countryRead the treaty →How much tax will you pay? Run the numbers
What ImmoPourExpat does for you
From strategy to the mortgage as a non-resident, including the search for profitable properties and the renovation works managed remotely : we take care of everything, at your pace.
Prepare your choice of regime
Unfurnished or furnished, micro or actual regime, directly held or via an SCI: we help you understand the options before the purchase. The final choice is validated with an accountant or a tax lawyer.
The rules of your country
For each country of residence, a page explains what its treaty with France provides for your rents and your capital gain.
Understand rather than endure
Training and workshops to manage your own investor taxation yourself, year after year.
Frequently asked questions
Is LMNP possible when you live abroad?
Yes. The non-professional furnished landlord status does not depend on your residence: a non-resident can let furnished, under micro-BIC or the actual regime, and depreciate the property under the actual regime.
Do I pay tax in France or in my country of residence?
The rents and capital gain on a property located in France are taxed in France. Your country of residence may also take them into account: the tax treaty signed with France says how double taxation is avoided, by an exemption or a tax credit.
Why are my social contributions 7.5% or 17.2%?
It all depends on your social security affiliation. Affiliated in a country of the European Union, the EEA, Switzerland or the United Kingdom (and not in France): 7.5%. In other cases: 17.2% on unfurnished lets and 18.6% on furnished.
What is the 20% minimum rate?
For a non-resident, tax on French-source income cannot be lower than 20% up to €29,579 of net taxable income, then 30% above (2025 income). If your average rate, calculated on all your household’s worldwide income, is lower, you can ask to have it applied: you then declare that income and must be able to justify it.
Do you need a tax representative to sell?
Cela dépend du prix de vente et de votre pays de résidence : notre page dédiée au tax representative détaille les cas, et nous vérifions votre situation avec vous avant la vente.
Where and how do you declare your rents when you live abroad?
Every spring, with the non-resident individuals tax office, on return no. 2042: online, or on paper by post if you are declaring in France for the first time. For unfurnished lets, you enter your rents under micro-foncier, or you add return no. 2044 under the actual regime. For furnished lets, you use the 2042-C-PRO under micro-BIC; under the actual regime, a tax package filed electronically is needed. You must also follow the filing rules of your country of residence.
How do you register as an LMNP from abroad?
The procedure is done online, on the INPI one-stop shop, within 15 days of the start of the letting. You then obtain a SIRET number, to use for your returns. You must also file the CFE return (form 1447-C-SD) no later than 31 December of the first year, with the business tax office for the location of the property. If the procedure blocks you, an accountant can take care of it.
I am moving abroad: let, sell or switch my main residence to furnished?
Everything depends on your plans to return and your future country of residence: selling, letting unfurnished or letting furnished do not have the same tax effects, whether while letting or on resale. Furnished letting under the real regime currently lets you depreciate the property, but this depreciation in principle increases the capital gain on resale. Compare the three scenarios before leaving, and inform your bank if you have a loan in progress.
Does a second home in France make me a French tax resident?
No, owning a property is not enough. You are a French tax resident if your household or main place of stay is in France, if you carry out your main professional activity there, or if the centre of your economic interests is there. If two countries claim you, the tax treaty, if there is one, decides. Beware of long stays and working from that home: have your situation validated by a tax specialist.
Official sources:
Rules up to date as of 2 November 2026 (Code général des impôts, BOFiP, impots.gouv.fr). This page provides information on the general rules: it does not replace tax advice on your situation.
To go further on taxation: Income tax for a non-resident, The tax representative, Social contributions for a non-resident, IFI for a non-resident.
The information on this page is general and does not replace tax, legal or financial advice suited to your situation.
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