A luxury holiday villa on the Côte d'Azur sounds like a dream. But once you decide to rent it out, you enter the curious world of French bureaucracy. And trust us, it’s not for the faint-hearted. Here's a clear guide on what to expect when it comes to regulations, taxes, and common pitfalls to avoid.
1. Do You Need To Register Your Property?
Yes! In France, there's a notification requirement for vacation rentals. This means you must register your property with the local town hall (mairie). For detailed information, you can refer to French government guidelines: Rent your second home (make it a furnished apartment).
In some areas, a permit is also needed but not in Grimaud, Sainte Maxime, or Les Issambres, where an online declaration suffices. In towns with more than 200,000 inhabitants (like Nice) or in popular coastal resorts, additional rules may apply, such as a cap on the number of rental days per year.
Always check with your mairie. And remember: French paperwork takes time, so don’t delay.
2. Tourist Tax: Who Pays What and When?
Guests staying in your villa must pay a tourist tax (taxe de séjour). The rate varies by location, property type, and classification.
If you're working with a rental agency, they often collect and remit this tax for you. However, you still need to register your property and provide the relevant ID number. Some agencies might leave this entirely in your hands, so always confirm who’s responsible. Penalties for non-compliance can be steep.
3. What About Income Tax?
Of course, France wants its share of your rental income. You're required to declare your earnings in France, and from 2025, the rules have changed significantly. Your property classification could now impact how much you owe.
There are two tax regimes: MICRO-BIC and the Régime réel:
- Micro-BIC: No bookkeeping needed. You’re taxed on a portion of your income, with a turnover limit.
- Unclassified properties: New limit is €15,000 and only 30% of costs are deductible. That means 70% of your income is taxable.
- Classified properties: Limit is €77,700 with a 50% deduction.
- Régime réel: Required if you earn over €77,000, but you can also opt in voluntarily. While it requires more admin, you can deduct all expenses, including maintenance and depreciation, potentially reducing your taxable income to zero or even reporting a loss.
We always recommend working with a local accountant. They can help determine the most advantageous setup based on your past earnings or expected income. France has tax treaties with countries like the Netherlands and Germany to prevent double taxation but always double-check with your local advisor.
For more insights, French tax authority provides detailed information: Tax Obligations when renting out furnished property. Additionally you can also check "Non-Resident: I receive income from real property".
4. Social Charges? (Prélèvements Sociaux)
In addition to regular tax, France levies a 7.5% solidarity charge on rental income earned by non-residents. Though they can’t technically charge social contributions to non-residents, this cleverly renamed "solidarity levy" applies just the same. Refer to As a non-resident, am I liable for social security contributions and the social levy? for more information.
5. Renting Out Through an SCI? Beware of Tax Implications
Many foreign homeowners place their property in an SCI (Société Civile Immobilière). This can be useful for family ownership and inheritance, but it complicates taxes when you start renting.
Once rental income is involved, your SCI might be seen as a commercial entity, meaning it could fall under corporate tax rules, potentially increasing your tax burden. For an understanding of the tax system related to property investment companies (SCI) in France, consult the Notaires de France.
We recommend that you get professional advice if you're considering or already using an SCI.
Conclusion: Start Early and Get Help
Renting out your French holiday home is a great way to earn extra income but don’t underestimate the paperwork involved. Make sure your property is properly registered, your taxes are in order, and you’ve chosen the right setup for your situation. Fleur sur Mer can assist you to connect you with the right professionals.
Just a Note:
The information we share here is based on our experience and general knowledge, but when it comes to legal, tax, or regulatory matters, it’s always best to speak with a qualified professional like a lawyer or accountant. Fleur sur Mer is not able to offer consulting or formal advice on these topics.
