Usually, any French letting income will be assessed under one of two methods in France:Regime des Micro-Entreprises:
Whenever total income for the year is less than €76,300, unless the taxpayer opts for an alternative method of calculation, the tax office will apply the Regime des Micro Entreprises, whereby tax at 25% will be applied to 32% of income. The obvious disadvantage with this route is that losses cannot arise. If there is a mortgage on the property and if depreciation is available, actual expenses for furnished holiday letting are likely to exceed 68% of income, especially in the early years. Regime Simplifié:
This method of accounting is compulsory when turnover exceeds €76,300, or applicable by option, the regime requires simplified accounts to be drawn up and presented each year, with tax being assessed against actual income and expenditure incurred. Losses can therefore arise to be carried forward, (for a maximum of 5 years), as well as excess depreciation which can be set against future profits indefinitely. As a result a more tax efficient approach can be maintained. Article continued here: Tax Issues: Buying a property to rent in FranceMore about submitting your French Tax online.
Whenever total income for the year is less than €76,300, unless the taxpayer opts for an alternative method of calculation, the tax office will apply the Regime des Micro Entreprises, whereby tax at 25% will be applied to 32% of income. The obvious disadvantage with this route is that losses cannot arise. If there is a mortgage on the property and if depreciation is available, actual expenses for furnished holiday letting are likely to exceed 68% of income, especially in the early years. Regime Simplifié:
This method of accounting is compulsory when turnover exceeds €76,300, or applicable by option, the regime requires simplified accounts to be drawn up and presented each year, with tax being assessed against actual income and expenditure incurred. Losses can therefore arise to be carried forward, (for a maximum of 5 years), as well as excess depreciation which can be set against future profits indefinitely. As a result a more tax efficient approach can be maintained. Article continued here: Tax Issues: Buying a property to rent in FranceMore about submitting your French Tax online.
Tax Issues: Buying a property to rent in France
Read more about french properties by null
Tax Issues: Buying a property to rent in France
Read more about french properties by null
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