How is income tax worked out on rented flats and houses in France?
A. The first step is to decide whether the property is to be rented furnished or unfurnished. This is important and will have an important impact on the final tax bill. It also affects the local taxes (i.e. rates) you pay. If the property is let furnished it is taxed under the business tax rules. If it is unfurnished it is taxed under the property rental rules. Please remember this discussion is only about income tax and you need to think about tenants rights, which vary between furnished and unfurnished properties. You also need to think about other taxes such as Capital Gains Tax, Inheritance Tax and local taxes. FURNISHED LETTINGS – BUSINESS TAX Q. What about bed and breakfast? A. They will be taxed under the business rules. Q. What about gites? A. They will be taxed under the business rules. Q. Assuming I rent furnished how is the profit calculated and what can I deduct? A. This is where it starts getting tricky and where mistakes can be expensive. If your total furnished rental in
