Living abroad for more than six months per year (regardless of nationality) classifies you as a non-resident taxpayer. If you own property in France, either directly or through shares in a non-trading property company (SCI) or a limited company, you are subject to specific taxes. This article primarily focuses on rental income, but you can also explore our additional articles covering local taxes, capital gains, and wealth tax for non-resident property owners.

The Crucial Role of International Tax Treaties Before determining the taxes relevant to your situation, it’s essential to establish whether a tax treaty exists between France and your country of residence.

The tax treaty serves two purposes:

1. To prevent double taxation;
2. To combat tax evasion.

As such, you must pay tax in France since this is where the income-generating property is located (e.g., rent, capital gains).

💡 Example: Rent generated by a property located in France will be taxed in France (referred to as “impôt à la source” in French). You must also report this rental income when filing your tax return in your country of residence, which will apply a deduction (equivalent to the tax paid in France) to avoid double taxation.

In the absence of a tax treaty between France and your host country, you may face double taxation on the same income. However, this scenario is extremely rare.

Keep in mind that tax regulations can change, so it’s always best to consult with a tax professional for the most accurate advice. We are happy to connect you with the right experts.