According to their nature, rental revenues depend from two distinct tax categories:
- Property income (Revenus Fonciers) for non-furnished rentals
- Industrial and commercial profits (BIC: bénéfices Industriels et commerciaux) for furnished rentals.
Some investments in property will give you rights to tax advantages.
Property investment is the best way to create an asset and to generate extra revenues for your retirement.
I.1 Empty rental (location nue)
Includes all types of non-furnished properties (house,apartment,car park, commercial property, etc…)
- Can be a rental agreement between individuals or through a taxable company
- To be declared as property income (revenus fonciers):
- MICRO-FONCIER (small rental income) DECLARATION
Possible if the annual income is under 15000€ = 30% tax allowance, no other deduction possible = no possibility to generate an income deficit = gross amount to be declared on the form 2042 in box 4B
- DECLARATION AU REEL (actual cost)
Possible is the annual income is higher than 15000€ = the majority of the expenses can be deducted = income and expenses to be declared in the form 2044 or 2044 special
- Possibility to choose the ‘regime réel’ (actual cost) even if the income is lower than 15000€ => can be interesting if the expenses represent more than 30% of the income. Be careful as you can’t opt out of this regime for the next 3 years!