Investing in property
in France from Italy

French banks apply the HCSF standard to Italian residents: a 35% debt-to-income ratio, insurance included, and a term of 25 years at most. Your income in euros spares them the currency risk, but not all of them accept non-residents, and some ask for a very high down payment. The choice of banks and the way the application is presented make the difference.

Also read: which banks lend to expats and how much down payment to plan for.

The 1989 treaty lets France and Italy both tax your rents: it is Italy that deducts French tax from its own, up to the amount of Italian tax on that income. Above €50,000 of taxable capital gain, a surcharge of 2% to 6% is added in France. The capital gain can be exempt up to €150,000 if you are a French or European national, have been domiciled in France for at least two years in a row and sell by 31 December of the 10th year following your departure at the latest; the former main residence is exempt if you sell it by 31 December of the year following your departure at the latest. Warning: these exemptions apply only in France. If the capital gain is exempt in France and you resell less than 5 years after the purchase, Italy may tax it, with no French tax to deduct.

Also read: how the rents of a non-resident are taxed.

Warning, in Italy: a French SCI may be treated differently than in France, for income tax as well as for the IVIE and the RW section. To be studied with an Italian tax specialist before buying through a company.

The right choice depends on your project and your country: compare with the rental income tax calculator.

Your French rents are declared in your Italian income tax return. The Italian tax code (article 70 of the TUIR) uses net income as calculated in France; you then claim the credit for tax paid abroad (article 165 of the TUIR), up to the amount of Italian tax on these rents. The Italian tax authority allows French income tax and social contributions paid since 2016 in this credit (reply no. 161 of 28 December 2018, which specifically covers homes let in France). Keep your French tax notices to justify it.

An Italian resident who owns a home abroad declares it every year in section RW of their return (section W if they file Form 730), even if it is not let. They pay the IVIE, a tax on the value of that property, at a rate of 1.06% since 2024. For a property located in France, the value used is the purchase price stated in the deed; you can also choose a value calculated from the property tax base (circular 28/E of 2012). The property tax and IFI paid in France on that same property are deducted, and the IVIE is not due if it does not exceed €200. A main residence abroad is in principle exempt from it, but not a property that you let.

If you have not been an Italian resident for at least 9 of the previous 10 years, you can opt for a flat-rate tax on all your foreign income, French rents included. For a move since 1 January 2026, it is €300,000 a year: this regime is aimed only at very large incomes. French tax on your rents remains due in all cases.

The steps of the ImmoPourExpat method, from the first call to letting →