Real Estate in France & Tax Obligations

Tax obligations for non-domiciled individuals

Frenh income tax and wealth tax

Individual who are non-domiciled in France for tax purpose may be subject to:

• French income tax on their French source income, notably any rental income;
• French real estate wealth tax over their French located real estate assets they hold directly or indirectly, which net value exceeds EUR 1,3 million as at 1 January of each year.

In this regard a French income tax return (for 2025) and a French wealth tax return (for 2026) must be filed in May 2026 (the deadlines have not yet been announced).

Obligations for French or foreign legal entity, trust or similar institutions

3% annuak tax on Real Estate assets

Any French or foreign legal entity, trust or similar institutions, regardless their legal form, that owns directly or indirectly real estate property in France on 1 January of each year is subject to a 3% annual tax levied on the fair market value.

Possible exemptions

Some exemptions may apply and more particularly:

Legal entities that have their registered office in France, in a Member State of the European Union or in a country or territory that has concluded an administrative assistance agreement with France to prevent tax evasion and avoidance, or in a country that has concluded a treaty with France allowing them to benefit from the same treatment may be exempt this 3% tax provided that they file a no. 2746 return each year and disclose the shareholders, the number of shares, the fair market value.

This return must be filed by May 15, 2026.

Obligations for entities managing French Real Estate

Any French or foreign legal entity whose purpose is to hold, manage real estate assets in France which may be leased to third parties or whose shareholders keep the free use, must file a no. 2072 return each year.

This return must be filed by 5 May 2026 (by paper) or by 20 May 2026 (online).

Mandatory annual declaration of property occupancy

From 2023, all owners, whether natural or legal persons, of residential premises, including non-residents, must declare information relating to the conditions of occupation of these properties (if they keep them for their own use) or to the identity of the occupant(s) (if the premises are occupied by third parties). From 21 February 2026, property owners may delegate the update of the occupancy declaration to the rental manager, who then becomes responsible and liable for a fine of €150 per property in the event of non-compliance.

This declaration must be submitted online before 1 July each year or, failing that, via a paper form (form no. 1208-OD).