Paying tax on the letting of a French property

Thank you. You’ve made me gen up on this. Perhaps it used to be possible, but I’ve looked it up on HMRC and you have to pay tax @ 20% as a non-resident, and you have to register with HMRC as a non-resident landlord. So does the tenant apparently. I’ll read further.

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Reminds me - last year, one of the UK immigrants just down the road from us, got into deep dodo for not declaring gite income. He thought that - as he only rented to UK holidaymakers, who paid him in sterling, into a UK bank account - he didn’t need to declare that income in France. Quite bizarre. He still attempts to justify it and moans that he’s been victimised to this day!

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yes I know someone who rented out a business property only to be paid in cash every month though it would never get found out. alas the person was declaring rent payments to him on their returns…

It did not end well and as he was self employed they looked into all his business and his money out goings and incomings did just not add up.

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Hi everyone,
Having ascertained with your help that we need to declare our UK (Worldwide) income and UK tax paid on that to the French tax office,we turn our attention to the French income tax due on our french rental property.
We set this property up in 2017 and it incurred a large loss, not just due to the buying of furniture,decoration,cleaning etc but large fees for termite treatment,charapentes treatment,fencing the property for the safety of children and dogs,treating the moss on the roof…
We are happy to submit our own tax return,but we need advice on whether we can carry these losses over to subsequent tax years.If this is too specialised for general discussion does anyone know an English speaking accountant in Dax,Mont de Marsan,Pau,Bayonne,Biarritz or nearby ,please.

Depending on how your letting business and " meuble de tourisme" is registered, you get an automatic reduction (50 or 71%) each year for running expenses. Set up charges, AFAIK are not deductible against tax.

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Hi Mark
You mean we can’t claim for furniture,the fence etc and we don’t have to supply receipts for utilities,cleaning,cleaning materials,motoring expenses etc?

This might help with your query. I typed into Google “french tax on property rental income”.

https://www.french-property.com/guides/france/working-in-france/letting-property/taxation/

Thank you for the link Mandy.David Yeates was extremely helpful before we made the move here.We went to 3 or 4 of his seminars and gained loads of info and confidence,I would highly recommend to anyone thinking of making a move abroad ( A Place in the Sun).
I have read the link,it is always pretty complicated but it seems we may need to be affiliated to an accredited accountancy body or accountant.
If anyone knows an English speaking one in our area (Bayonne,Dax,Pau) we would be very grateful.

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Just returned to this site after being away. We’re going to go back to the hotel d’impôts and try again. Others have told us tales of wrong advice from the tax office here. It’s the same guy who seems to deal with foreigners so we assume he knows his stuff but the provincial offices are not up to speed on anything unusual. Sadly our affairs are beyond their experience. (Employee share options especially) they are very nice though :blush:

Hi Caryn
Off topic and I’ve never yet found a decent accountant let alone English speaking (!) but I thought I’d say hi as we are close to you by the sound of it!

Yep, that just about sums it up. You have to declare your total rental income and dont deduct any expenses.
Just the way it is in France!

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Hi Catharine,
Yes previously we were in Salies,but now near Sault de Navailles.Judging by Mark’s comments I don’t think we will be needing an accountant any time soon!

Mark, thank you for the info,we thought it would be like the UK system. Seems we have collected a whole load of paperwork the French don’t actually want!