Non-resident tax in France: what you still owe on French property and income

Maître Alexis Germe Cross-border tax International taxation

A flat in Paris, a rental property in Bordeaux, French dividends, a French pension: if you have kept any of these after moving abroad, your relationship with the French tax authorities has not ended. You remain liable to non-resident tax in France on part of that income and wealth. The rules are not intuitive: a minimum rate of income tax, social charges that depend on where you are insured, a wealth tax limited to French real estate. This guide explains, tax by tax, what a non-resident still owes in France in 2026, and what changes if you live in the United Kingdom or the United States. If you are still preparing your move, read also our guide to the exit tax on your shareholdings.

Who counts as a non-resident for French tax purposes?

You are a non-resident of France for tax purposes when you meet none of the tests of French tax domicile set out in Article 4 B of the French General Tax Code (Code général des impôts, or CGI): your home or principal place of stay, your main professional activity and the centre of your economic interests^[1]. Where France and another country both regard you as resident, the tie-breaker rules of the applicable tax treaty decide.

Once you are non-resident, your liability in France becomes limited. Your French-source income is calculated under the same rules as for residents but, in principle, none of the charges deductible from total income can be deducted^[2]. French-source income includes, among others, income from property situated in France, income from French securities and income from professional activities carried on in France^[3].

Test your knowledge

3 questions to see whether this article can help you

1. You live in the UK and let out a flat in France. Where is the rental income taxable?

Only in the UK In France, and also in the UK, which gives credit for the French tax Nowhere, as long as the rent stays in a French bank account

2. What minimum rate of French income tax applies, in principle, to the first slice of a non-resident’s French income?

11% 20% 45%

3. You are covered by UK social security. What French social charges apply to your French rental income?

None at all since Brexit The full 17.2%, as for a US resident Only the 7.5% solidarity levy

Which French income is taxable for non-residents?

How is rental income from French property taxed for non-residents?

Rent from a property situated in France is French-source income^[3], and tax treaties leave France the right to tax it: both the France-UK and the France-US treaties provide that income from immovable property may be taxed in the State where the property is situated^[19][21]. Income from unfurnished lettings is taxed under the progressive income tax scale, in the property income category^[6].

Two regimes are available. Under the micro-foncier regime, which applies where the gross property income of your tax household does not exceed €15,000 a year, a flat 30% allowance is deducted automatically. Above that threshold, or by election, the actual expenses regime (régime réel) applies; the election is binding for three years^[8]. The net income is then subject to the minimum rate of income tax reserved for non-residents, and to social charges.

Do non-residents pay French social charges on rental income?

Yes, in principle. Social levies apply to the French property income and property capital gains of non-residents, at an overall rate of 17.2% on unfurnished lettings^[6][7]. There is, however, an important exception. Since 1 January 2019, people affiliated to a compulsory social security scheme, other than the French one, in a country of the European Economic Area or in Switzerland are exempt from the CSG and the CRDS: they pay only the 7.5% solidarity levy^[6][7].

The French tax authorities state that, despite Brexit, British residents continue to benefit from this exemption^[6][7]. A resident of the United States, who is not covered by a European scheme, pays the full social levies. To claim the exemption, you tick the relevant boxes (8SH or 8SI) on form 2042 C when filing your return^[6].

Furnished lettings in France: how are non-residents taxed?

Income from furnished accommodation, including a holiday let, falls into a different category: business profits (bénéfices industriels et commerciaux, or BIC). The social levies on this income have risen to 18.6%, a new rate applicable from 2025 income, while the same CSG and CRDS exemption applies to people insured in the EEA, Switzerland or the UK, who remain liable to the 7.5% solidarity levy^[6].

French dividends and pensions paid to non-residents

Dividends paid by a French company to a non-resident individual bear a withholding tax of 12.8%^[18]. The France-UK and France-US treaties cap French tax on portfolio dividends at 15%^[19][21]; as the French domestic rate is lower, 12.8% applies in practice.

Pensions depend heavily on the treaty. For UK residents, the France-UK treaty generally reserves private pensions to the UK, whereas French government pensions remain taxable only in France unless the recipient is a UK resident and national who is not also a French national^[20].

What is the French minimum tax rate for non-residents?

This is the rule that surprises most non-residents. Under Article 197 A of the CGI, the income tax of a non-resident cannot be lower than 20% of net taxable income up to the upper limit of the second band of the scale, and 30% above that limit^[4]. For 2025 income, declared in 2026, that limit is €29,579, following the indexation of the scale by the 2026 Finance Act^[5].

The minimum rate is not inevitable. If you show that the average rate of French tax, applied to your worldwide income, would be lower, that average rate applies to your French-source income instead^[4]. You declare your worldwide income on your French return; it only sets the rate, and only your French income is taxed^[8].

[…] a. Receive French-source income; in that case, the tax may not be lower than an amount calculated by applying a rate of 20% to the portion of net taxable income that is less than or equal to the upper limit of the second band of the income tax scale, and a rate of 30% to the portion above that limit; […] however, where the taxpayer shows that the rate of French tax on all of his or her French-source and foreign-source income would be lower than these minimum rates, that rate applies to his or her French-source income.
Article 197 A of the CGI, version in force, unofficial translation ^[4]

Case study

A UK retiree letting a flat in Bordeaux

A retiree living in Manchester, insured under UK social security, lets an unfurnished flat in Bordeaux for €14,000 a year. Under the micro-foncier regime, the 30% allowance brings taxable income down to €9,800. At the 20% minimum rate, French income tax comes to €1,960. As she is covered by UK social security, she pays the 7.5% solidarity levy, or €735, but neither CSG nor CRDS.

If she shows that the average French rate on her worldwide income would be 9%, the income tax on her rent falls to €882. In the UK, she reports the same rental profit to HMRC, which in principle gives credit for the French income tax, up to the UK tax due on that income; HMRC also lists the solidarity levy, but not the CSG or the CRDS, among the French taxes admissible for credit^[26].

Illustrative example only, not a real client case. Every situation calls for individual analysis.

Capital gains tax on French property for non-residents

When a non-resident sells a property in France, the gain is subject to a flat levy of 19%^[9], plus social levies of 17.2%, or only the 7.5% solidarity levy if you are insured in the EEA, Switzerland or the UK^[12]. Holding period allowances reduce the taxable gain: for income tax, 6% a year from the sixth to the twenty-first year and 4% for the twenty-second year, which means full exemption after 22 years^[10]; for social levies, the exemption is reached after 30 years^[12]. A further surtax, from 2% to 6%, applies to net gains above €50,000, other than gains on building land^[11].

The notary pays the tax at completion, using form 2048-IMM^[12], and both the France-UK and France-US treaties leave France the right to tax these gains^[19][21].

Selling French property as a non-resident: the key figures

Income taxFlat levy of 19% on the gain^[9]
Social levies17.2%, or only the 7.5% solidarity levy if you are insured in the EEA, Switzerland or the UK^[12]
Holding periodFull exemption after 22 years for income tax and after 30 years for social levies^[10][12]
Above €50,000Surtax from 2% to 6% on net gains, other than gains on building land^[11]
At completionTax paid by the notary, using form 2048-IMM^[12]

Do I need a French tax representative when selling?

Sellers domiciled outside France must, in principle, appoint an accredited tax representative in France. Residents of a European Union Member State, Iceland or Norway are exempt^[12]. UK and US residents are not, unless one of the automatic exemptions applies: a sale price of €150,000 or less, a gain that is fully exempt from both income tax and social levies because of the length of ownership, or a sale covered by the former main residence exemption described below^[13].

Are there exemptions for non-residents selling a French home?

Two exemptions are open to non-residents, under strict conditions^[14]:

the former main residence: the gain is fully exempt if you sell your former French home by 31 December of the year after you left France, provided you moved to an EU Member State or to a country that has concluded with France agreements on administrative assistance against tax fraud and on assistance in tax recovery, which is the case of the UK and the US^[27], and the property was not made available to anyone else in the meantime^[14];
the €150,000 exemption: available once per taxpayer to nationals of an EU or EEA State who were tax resident in France continuously for at least two years at some point, subject to time limits^[14]. British or American nationals without EU or EEA nationality do not qualify.

French wealth tax (IFI) for non-residents

The impôt sur la fortune immobilière (IFI) is a wealth tax on real estate. Non-residents are liable only on their real estate situated in France, held directly or through companies to the extent of the value representing French property, where their net taxable real estate exceeds €1.3 million on 1 January^[15]. The rates range from 0.5% to 1.5%, with a reduction for estates between €1.3 million and €1.4 million^[16].

The IFI is declared together with your income tax return, using form 2042-IFI if you file on paper; if you have no income to declare in France, a specific form 2042-IFI-COV applies^[17]. The rules on deductible debts are strict and deserve a case-by-case review: our guide to the French wealth tax explains how IFI applies to your French property, including deductible debts and the UK and US treaties.

French inheritance and gift tax for non-residents

Under Article 750 ter of the CGI, where the deceased or the donor is not domiciled in France, property situated in France remains taxable in France; assets situated abroad also become taxable when they are received by an heir or recipient who is domiciled in France and has been for at least six of the previous ten years^[23]. Separate treaties with the UK (inheritance) and the US (estates and gifts) can change this allocation. Our guide on how inheritance is taxed in France covers these questions, including the rules for heirs and owners living abroad.

Local taxes on a French second home

As an owner, you remain liable to the taxe foncière (property tax)^[28]. If you keep a furnished home at your disposal in France, it is treated as a second home and may be subject to the council tax on second homes (taxe d’habitation sur les résidences secondaires)^[24], which some municipalities may increase^[25]. Every owner must also file an occupancy declaration by 1 July each year through the « Gérer mes biens immobiliers » section of their online account, unless nothing has changed since the last declaration^[6].

Non-residents: your dates with the French tax authorities

1 JanuaryValuation date of your French real estate for the IFI
Each springOnline return of your French-source income, with the IFI if applicable
By 1 JulyOccupancy declaration in « Gérer mes biens immobiliers », if anything has changed
In the autumnProperty tax and, where the home stays at your disposal, the second home tax

How do non-residents file a French tax return?

If you receive French-source income taxable in France, you must file an annual income tax return, in principle online, with the department in charge of non-resident individuals (Service des impôts des particuliers non-résidents)^[17]. Rental income goes on form 2042, with form 2044 under the actual expenses regime^[8]; the CSG and CRDS exemption is claimed on form 2042 C^[6].

Non-resident tax in France for UK and US residents

UK residents and the France-UK tax treaty

If you are UK resident, you normally pay UK tax on your foreign income, including rent from an overseas property; the domicile-based exemption that some people relied on no longer applies from 6 April 2025, although recent arrivals may qualify for the new Foreign Income and Gains relief^[22]. Double taxation is relieved by the 2008 France-UK convention: France taxes the French rent or gain, and the UK allows the French tax as a credit against the UK tax on the same income^[19]. Our article on the France-UK double tax treaty explains the treaty article by article.

US citizens and residents with French income

The 1994 France-US convention also leaves France the right to tax income from, and gains on, French real property, and caps French tax on portfolio dividends at 15%^[21]. The United States, which taxes its citizens and residents on their worldwide income, allows a credit for the French income tax paid, subject to the limits of US law^[21]. As a US resident is not covered by a European social security scheme, the full French social levies apply to French property income and gains^[12].

Taxes a non-resident may still owe in France

Unfurnished lettings	Income tax with a 20% or 30% minimum rate, plus 17.2% social levies, or 7.5% if insured in the EEA, Switzerland or the UK^[4][6]
Furnished lettings	Business profits category, social levies of 18.6%, or 7.5% if insured in the EEA, Switzerland or the UK^[6]
Property capital gains	19% plus social levies, holding period allowances, surtax above €50,000^[9][11][12]
Dividends	12.8% withholding tax^[18]
IFI	French real estate only, above €1.3 million net^[15]
Inheritance and gifts	At least on assets situated in France, subject to treaties^[23]
Local taxes	Property tax and, for a home kept at your disposal, the second home tax^[24]

Advice from a French tax lawyer for non-residents

Non-resident taxation combines French domestic law, the applicable treaty and the rules of your country of residence. Working with a tax lawyer in France helps you identify what remains taxable in France, choose the right options on your return and regularise past years where necessary.

Do you own property, investments or income in France while living in the UK or the US? Have your next French non-resident return reviewed by Alexis Germe before you file it: the minimum rate, the social security exemption and treaty credits are the most frequent sources of error, and the easiest to address at that stage.

Sources and references

Frequently asked questions about non-resident tax in France

Do I have to file a French tax return if I live abroad and let out my French property?

Yes. Rent from a French property is taxable in France, so you must file an annual return, in principle online^[3][17].

What is the French tax rate for non-residents on rental income?

Rental income is taxed under the progressive scale with a minimum rate of 20%, and 30% above the upper limit of the second band (€29,579 for 2025 income)^[4][5]. You can ask for your average French rate on worldwide income to apply if it is lower.

Do UK residents still benefit from the reduced social charges after Brexit?

Yes. The French tax authorities state that British residents continue to benefit from the CSG and CRDS exemption: if you are insured under UK social security, you pay only the 7.5% solidarity levy on French property income and gains^[7].

How much tax does a non-resident pay when selling a property in France?

The gain is taxed at 19%, plus social levies of 17.2% or the 7.5% solidarity levy, after holding period allowances. A surtax applies to gains above €50,000^[9][11][12].

Do I need a French tax representative to sell my French property?

In principle, yes, if you are domiciled outside France. Residents of a European Union Member State, Iceland or Norway are exempt^[12]. UK and US residents are not, unless the sale price is €150,000 or less, the gain is fully exempt from both income tax and social levies because of the length of ownership, or the sale is covered by the former main residence exemption^[13].