TLDR: A non-tax resident in France is required to pay taxes only on French-source income, including income from a property located in France. They must declare rental income and capital gains from real estate, with possible exemptions for EU/EEA citizens under specific conditions. In some cases, appointing a tax representative in France is mandatory.
Who Is Considered a Non-Tax Resident?
A non-tax resident is a person whose tax domicile is not in France, according to Article 4 B of the Code Général des Impôts (CGI). This status entails the obligation to pay taxes only on French-source income, including rental income from a property located in France.
Declaration Obligations
Non-residents earning rental income from a property in France must declare it under the income tax (IR) rules. For capital gains from real estate—such as those realized upon selling the property—a flat-rate withholding tax (prélèvement) applies.
Exemptions for EU/EEA Non-Residents
Non-residents from the European Union or the European Economic Area may qualify for an exemption on capital gains from the sale of a property, provided that:
- They had their tax domicile in France for at least two years in the past.
- The sale occurs within five years of moving abroad, or the property was at their disposal as of January 1 of the year preceding the sale.
The exemption is limited to €150,000 in net capital gains and applies to only one property per taxpayer.
Tax Representative
Non-residents without a numéro SPI (tax file number) in France may be required by the tax authorities to appoint a tax representative in the country. This representative is responsible for managing tax declarations and payments on behalf of the taxpayer. Appointing a representative is mandatory when declaring capital gains or if explicitly requested by the tax administration.
International Conventions
French tax rules apply unless otherwise specified by international double taxation treaties. These treaties may modify tax rates, exemptions, or declaration obligations, depending on the taxpayer’s country of tax residence.
Special Provisions for French Citizens
This rule does not apply to French citizens who pay an equivalent tax abroad, provided that this tax is at least equal to two-thirds of what would be due in France. Additionally, in the case of moving abroad for professional reasons, a temporary three-year exemption is provided.