2024 French income, wealth tax filing deadlines & an update to furnished lettings post budget
2024 French income, wealth tax filing deadlines & an update to furnished lettings post budget
The French tax filing deadline for the 2023 income and 2024 wealth tax reporting and an update to furnished lettings post budget were recently announced.
2024 French income & wealth tax filing deadlines
French furnished lettings:
As stated in our previous bulletins, the 2024 Loi de Finances introduced changes to the tax treatment of French furnished letting activities. The changes were then altered to cancel the retrospective effects affecting the income received in 2023. The whole process has led to a number of confusions, but now that the “dust has settled”, we summarise the current situation.
First, the letting of furnished accommodation which is not offered to holiday-makers remains unaffected. The Micro BIC regime continues to apply with a set 50% deduction provided the turnover in either of the two preceding years does not exceed €77,700.
The turnover threshold for the Micro-BIC regime in respect of registered chambres d’hôtes or meublés de tourisme classés remains €188,800, whilst the 71% set deduction may increase to 92% provided the property is not situated in a zone tendue, that is to say, where there is a housing shortage. However, for this higher set deduction to apply, the previous year’s turnover must be below €15,000.
The types of lettings targeted by the new measures, are those offered for short terms stays of up to one month to holiday-makers and which are not registered as chambres d’hôtes or meublés de tourime classés. All these types of lettings must report under the itemised regime if their turnover in both preceding years exceeds €15,000, instead of €77,700 previously. If not, they are assessed under the Micro BIC regime but with a reduced 30% deduction instead of 50% previously. Taxpayers may still opt for the standard or simplified itemised regimes (régimes réels).
The change was set to apply for 2023 income, but as we announced in our previous bulletin, thankfully the French administration confirmed that taxpayers are allowed to apply the old rules to avoid any harmful retrospective effects. It is now clear that those with turnovers below €77,700 in either 2021 or 2022 will be allowed to remain under the Micro BIC regime and benefit from the 50% deduction in respect of their 2023 income. Therefore, there is a little more time to fully appreciate the effects of the new measure noting however, that these will affect the 2024 rental income.
The following table updates the one we originally published and is established to illustrate the effects on the 2023 and 2024 rental income for the types of lettings affected by the measures.
The French tax filing deadline for the 2023 income and 2024 wealth tax reporting were recently announced as follows:
21 May 2024 for paper filing and for the online filing of all non-residents
23 May 2024 for French residents living in the departments 1 to 19
30th May for residents of the departments 20 to 54
French furnished lettings:
As stated in our previous bulletins, the 2024 Loi de Finances introduced changes to the tax treatment of French furnished letting activities. The changes were then altered to cancel the retrospective effects affecting the income received in 2023. The whole process has led to a number of confusions, but now that the “dust has settled”, we summarise the current situation.
First, the letting of furnished accommodation which is not offered to holiday-makers remains unaffected. The Micro BIC regime continues to apply with a set 50% deduction provided the turnover in either of the two preceding years does not exceed €77,700.
The turnover threshold for the Micro-BIC regime in respect of registered chambres d’hôtes or meublés de tourisme classés remains €188,800, whilst the 71% set deduction may increase to 92% provided the property is not situated in a zone tendue, that is to say, where there is a housing shortage. However, for this higher set deduction to apply, the previous year’s turnover must be below €15,000.
The types of lettings targeted by the new measures, are those offered for short terms stays of up to one month to holiday-makers and which are not registered as chambres d’hôtes or meublés de tourime classés. All these types of lettings must report under the itemised regime if their turnover in both preceding years exceeds €15,000, instead of €77,700 previously. If not, they are assessed under the Micro BIC regime but with a reduced 30% deduction instead of 50% previously. Taxpayers may still opt for the standard or simplified itemised regimes (régimes réels).
The change was set to apply for 2023 income, but as we announced in our previous bulletin, thankfully the French administration confirmed that taxpayers are allowed to apply the old rules to avoid any harmful retrospective effects. It is now clear that those with turnovers below €77,700 in either 2021 or 2022 will be allowed to remain under the Micro BIC regime and benefit from the 50% deduction in respect of their 2023 income. Therefore, there is a little more time to fully appreciate the effects of the new measure noting however, that these will affect the 2024 rental income.
The following table updates the one we originally published and is established to illustrate the effects on the 2023 and 2024 rental income for the types of lettings affected by the measures.
| Navigating the tax regime options for furnished holiday lets | |||||
| For the reporting & taxation of 2023 rental income and post amendment to the Loi de Finances | |||||
| Tax years | 2021 | 2022 | 2023 Income | ||
| Turnover | Turnover | tax regime | deductions | ||
| General furnished holiday | below €77,700 | below €77,700 | Micro BIC | 50% | |
| accommodation | below €77,700 | above €77,700 | Micro BIC | 50% | |
| above €77,700 | below €77,700 | Micro BIC | 50% | ||
| above €77,700 | above €77,700 | Itemised regime | Itemised regime | ||
| Meublés de tourisme classés | |||||
| & Chambres d'Hôtes | below €188,700 | below €188,700 | Micro BIC | 71% | |
| located in "Zones Tendues" | below €188,700 | above €188,700 | Micro BIC | 71% | |
| above €188,700 | below €188,700 | Micro BIC | 71% | ||
| above €188,700 | above €188,700 | Itemised regime | Itemised regime | ||
| Meublés de tourisme classés | |||||
| & Chambres d'Hôtes | below €188,700 | below €188,700 | Micro BIC | 71% or 92% if 2023 turnover is below €15,000 | |
| located in "Zones non-tendues" | below €188,700 | above €188,700 | Micro BIC | 71% or 92% if 2023 turnover is below €15,000 | |
| above €188,700 | below €188,700 | Micro BIC | 71% or 92% if 2023 turnover is below €15,000 | ||
| above €188,700 | above €188,700 | Itemised regime | Itemised regime | ||
| For the reporting & taxation of 2024 rental income and following years - under the new regime | |||||
| Tax years | 2022 | 2023 | 2024 Income | ||
| Turnover | Turnover | tax regime | deductions | ||
| General furnished holiday | below €15,000 | below €15,000 | Micro BIC | 30% | |
| accommodation | below €15,000 | above €15,000 | Micro BIC | 30% | |
| above €15,000 | below €15,000 | Micro BIC | 30% | ||
| above €15,000 | above €15,000 | Itemised regime | Itemised regime | ||
| Meublés de tourisme classés | |||||
| & Chambres d'Hôtes | below €188,700 | below €188,700 | Micro BIC | 71% | |
| located in "Zones Tendues" | below €188,700 | above €188,700 | Micro BIC | 71% | |
| above €188,700 | below €188,700 | Micro BIC | 71% | ||
| above €188,700 | above €188,700 | Itemised regime | Itemised regime | ||
| Meublés de tourisme classés | |||||
| & Chambres d'Hôtes | below €188,700 | below €188,700 | Micro BIC | 71% or 92% if 2023 turnover is below €15,000 | |
| located in "Zones non-tendues" | below €188,700 | above €188,700 | Micro BIC | 71% or 92% if 2023 turnover is below €15,000 | |
| above €188,700 | below €188,700 | Micro BIC | 71% or 92% if 2023 turnover is below €15,000 | ||
| above €188,700 | above €188,700 | Itemised regime | Itemised regime | ||
This publication has been carefully prepared, but it has been written in general terms and should be seen as containing broad statements only. It cannot be relied upon to cover specific situations without obtaining professional advice.
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