{"id":72657,"date":"2023-05-01T07:30:00","date_gmt":"2023-05-01T05:30:00","guid":{"rendered":"https:\/\/www.ovonetwork.com\/blog\/?p=72657"},"modified":"2024-09-19T12:58:59","modified_gmt":"2024-09-19T10:58:59","slug":"second-home-in-france-tax","status":"publish","type":"post","link":"https:\/\/www.ovonetwork.com\/blog\/second-home-in-france-tax\/","title":{"rendered":"UK owners: A guide to taxation on holiday homes in France"},"content":{"rendered":"\n

Many Brits dream of owning a holiday rental property in France. You can enjoy the best of both worlds by visiting your chalet, villa, or apartment at your leisure and earning a profit when it\u2019s empty \u2013 so it\u2019s easy to see why.<\/strong><\/p>\n\n\n\n

But, before you invest in a second home in France and rent it out, you should understand the associated tax implications<\/strong>. This is particularly important since the impact of potential tax benefit restrictions in various coastal regions of France in 2023. As a result, this has reinforced the appeal of Alpine locations and \u201cup-and-coming\u201d mountain locations.<\/strong><\/p>\n\n\n\n

In this post, we outline:<\/strong><\/p>\n\n\n\n

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  1. The different taxes to be paid by non-French residents<\/strong><\/li>\n\n\n\n
  2. How taxes are calculated<\/strong><\/li>\n\n\n\n
  3. The impact of Brexit <\/strong><\/li>\n\n\n\n
  4. Taxes associated with holiday rental properties<\/strong><\/li>\n\n\n\n
  5. Tax reduction schemes for holiday rental properties <\/strong><\/li>\n<\/ol>\n\n\n\n

    Read on for an introduction to the tax implications of owning a second home in France.<\/strong><\/p>\n\n\n\n

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    (The information here is a general guide only, which does not take into account your personal circumstances, is not intended to be tax advice and should not be relied upon as such. If you have any questions about taxes, we suggest that you consult your tax adviser or local tax authorities. Please contact us if you would like the contact details of a tax adviser who specialises in the vacation rental industry.<\/em> Please note that we do not update this information in real-time, so you should check and confirm if the laws, tax rates or procedures have changed recently.)<\/em><\/p>\n\n\n\n

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    Understanding tax residency<\/h2>\n<\/div><\/div>\n\n\n\n

    First of all, you need to clarify whether or not you are a tax resident or if you have a \u201cdomicile fiscal\u201d status in France. <\/p>\n\n\n\n

    According to Article 4B of the Code G\u00e9n\u00e9ral des Imp\u00f4ts (CGI)<\/strong>, you are classed as a tax resident in France if:<\/p>\n\n\n\n

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    1. Your main residence<\/strong> is in France.<\/li>\n\n\n\n
    2. You have a professional activity<\/strong> in France (employed or self-employed).<\/li>\n\n\n\n
    3. Your centre of economic interests<\/strong> is in France (investments, business etc).<\/li>\n<\/ol>\n\n\n\n

      Another way to determine residency in France is if you spend more than 183 days (6 months)<\/strong> on French soil throughout the tax year<\/a><\/strong>.<\/p>\n\n\n\n

      The UK Statutory Residence Test<\/a><\/strong> allows you to work out your residence status for an individual tax year<\/strong>, taking into account the amount of time you spend in the UK and where you work.<\/p>\n\n\n\n

      Brits also benefit from the France\/UK Double Taxation Treaty<\/a> <\/strong>which significantly reduces the risk of having to pay tax in both the UK and France simultaneously<\/strong>.<\/p>\n\n\n\n

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      Tax implications of owning a second home in France<\/h2>\n<\/div><\/div>\n\n\n\n

      There are a number of different taxes that, as an owner of a second home in France, you are liable to pay.<\/p>\n\n\n\n

      In this section, we\u2019re going to explain the following:<\/p>\n\n\n\n