Property-Related Taxes in France

France taxes non-residents only on income derived from French sources. The French tax system is complex, with multiple layers of taxation and significant variations depending on individual circumstances.

Non-resident individuals are subject to income tax at minimum rates of 20% or 30%. Rental income is taxed at similar rates and is generally subject to additional social charges of 7.5% or 17.2%. Capital gains from property sales are taxed at 19%, with substantial relief available for long holding periods, leading to full exemption after extended ownership. 

Corporate income is taxed at a flat rate of 25%, with a reduced 15% rate available for small companies. Property transaction costs are moderate, while annual property holding taxes apply through taxe foncière and, for high-value properties, wealth-based real estate taxes.

Annual Property Tax

France levies several recurring taxes on real estate.

Taxe d'habitation

Taxe d’habitation is payable by the occupant of the property. While it has been largely abolished for primary residences, it may still apply in certain cases, including secondary homes.

Taxe Foncière

Taxe foncière is payable by the property owner and consists of:

• Taxe foncière bâtie (TFB) – applicable to buildings
• Taxe foncière non bâtie (TFNB) – applicable to undeveloped land

Taxe Foncière Rates (2026):

• Taxe Foncière Bâtie (TFB): Applies to buildings and is levied at rates ranging from 0.2% to 1.5% of the cadastral value of the property.
• Taxe Foncière Non Bâtie (TFNB): Applies to land and is levied at rates determined by local authorities.

Wealth Tax on Real Estate (IFI – Impôt sur la Fortune Immobilière)

IFI applies to individuals whose net real estate assets in France exceed €1.3 million. The tax is levied only on real estate assets, not on financial assets.

Applicable rates are progressive, ranging from 0.5% to 1.5% on the value exceeding the €1.3 million threshold. Non-resident owners of French real estate are also subject to this wealth-based property tax under the same thresholds and rates.

Income Tax for Non-Residents

Non-resident individuals are subject to a minimum income tax rate on French-source income.

Income Tax Rates for Nonresidents (2026)

Actual effective tax rates may differ depending on applicable deductions, allowances, and tax treaties.

Rental Income Tax

Rental income earned by non-resident individuals is subject to French income tax at rates of 20% to 30%, depending on total taxable income.

In addition, rental income is subject to social charges:

• 7.5% for residents of the EU/EEA or treaty countries
• 17.2% for other non-residents.

The taxable base can be significantly reduced under either:

• a standard allowance regime, providing deductions typically ranging from 30% to 71%, or
• the real regime, under which actual expenses such as maintenance, repairs, insurance, and management costs may be deducted.

Capital Gains Tax on Property

Capital gains derived from the sale of French real estate are subject to a flat income tax rate of 19%.

Relief is granted based on the holding period:

• 6% for each year of holding after the fifth year
• 4% for the 22nd year of holding

As a result, capital gains income tax is fully eliminated after 22 years of ownership.

In addition to income tax, social surtaxes of up to 17.2% apply. These charges are also reduced progressively based on the holding period, with full exemption after 30 years of ownership.

Corporate Taxation in France

Corporate income tax applies automatically to most commercial entities, including sociétés anonymes (SA), sociétés par actions simplifiées (SAS), sociétés à responsabilité limitée (SARL), sociétés en commandite par actions, and certain cooperatives. In some cases, it may also apply to civil companies and partnerships, depending on their activities.

The standard corporate income tax rate is 25%. Expenses incurred in the production of taxable income are generally deductible. 

A reduced corporate income tax rate of 15% applies to qualifying small companies on the first €42,500 of taxable profits.

Property Buying and Selling Costs in France