Renting out property in France: landlord guide

Costs of buying

• Buying a resale home costs about 7–8% of the price in notary costs, mostly transfer taxes (most départements now charge up to about 6.3%). New homes cost about 2–3%.
• Owners pay taxe foncière every year.

Buying as a foreigner

• There are no restrictions on foreigners buying property in France and no extra tax for foreign buyers.
• Non-residents who sell may need to appoint a tax representative when the price is over €150,000; the notary handles the capital gains tax on the sale.

Official guidance: impots.gouv.fr: international and non-residents · Service-Public.fr: buying and renting out property

How rental income is taxed

• Unfurnished rent: under the micro-foncier regime (gross rent up to €15,000) 30% of the rent is deducted automatically; above that, or by choice, actual expenses are deducted (régime réel).
• Furnished rent (LMNP): micro-BIC deducts 50% for long-term furnished lets up to €77,700, but from 2025 only 30% up to €15,000 for unclassified holiday lets. Under the actual-expenses regime, depreciation is claimable, but since 2025 it is added back to the taxable gain when you sell.
• Non-residents pay income tax at a minimum of 20% (30% above about €29,000), plus social charges of 17.2%, or 7.5% if covered by another EU, EEA or Swiss social security system.
• Returns are filed online in May or early June; the date depends on your département, and non-residents have their own deadline.

Expenses claimable against rental income

• Under the actual-expenses regimes: loan interest, taxe foncière, co-ownership charges you can't pass on, insurance, repairs and management fees.
• Furnished lets under LMNP's actual-expenses regime can also claim depreciation of the building and furniture.
• Under micro-foncier and micro-BIC, the flat allowance replaces all expenses.

Tenancy rules

• Deposits are at most one month's rent for unfurnished homes and two months for furnished ones.
• Unfurnished leases run at least three years (individual landlords), furnished leases one year.
• Paris, Lille, Lyon, Bordeaux, Montpellier and other cities cap rents for new leases.
• Homes rated G on the energy performance certificate (DPE) can't be let under new leases since 1 January 2025; F-rated homes follow in 2028.

Key dates

• May to early June (by département): Annual income tax return, including rental income
• 15 October (online a few days later): Taxe foncière
• Before any new lease: A valid energy performance certificate (DPE) for the home

Questions landlords ask

What is a good rental yield in France?

Gross yields of 3–4% are common in Paris and 4–6% in other large cities. Check the net figure, after charges and taxe foncière, in the rental yield calculator for France.

How is rental income taxed for non-residents in France?

Income tax at a minimum of 20% (30% above about €29,000) plus social charges of 17.2%, or 7.5% for those covered by another EU, EEA or Swiss social security system.

What changed for furnished rentals (LMNP) in France?

From 2025, unclassified holiday lets get only a 30% allowance up to €15,000 under micro-BIC, and depreciation claimed under the actual-expenses regime is added back to the taxable gain on sale.

Can I let a home with a G energy rating in France?

Not under a new lease since 1 January 2025. F-rated homes follow in 2028, so plan insulation or heating works first.

Official sources

• impots.gouv.fr
• Service-Public.fr
• Service-Public.fr: energy performance certificate (DPE)