You currently rent your property a few weeks each year in order to cover the property loads.
You are not required to declare you rental income to the French tax authorities, however if you do choose to declare it, you will have considerable of tax benefits.
Indeed, if you do declare the rental income of your property, we will withdraw the capital gains tax after 5 years instead of 15 years. Furthermore, we will withdraw the property tax, and possibly the land tax during 5 years.
You will not be taxed on this rental income, and moreover, you will not be required to pay the wealth tax (ISF) each year, no matter what your nationality may be.
If you wish to conform yourself to the French law, our company can study your case, and quantify the savings which we can help you earn. In addition, in certain cases we can remove the inheritance tax.
As an example, we present you a case concerning a property valued at 1,000,000 euros.
| Déclaration | Sans déclaration | Economie | ||
| Rents | 40 000 | 0 | ||
| Property tax / Land tax | 0 | 2500 | 2500 | |
| Property loads 30% | 12000 | 12000 | ||
| Frais financiers | 0 | |||
| Property devaluation : 1000 000 X 80% over 20 years | 40000 | 0 | ||
| Déficit | 12000 | |||
| Tax deficit | 0 | 0 | ||
| Wealth tax 1000 000 - 760 000 (0.55 %) | 0 | 1320 | 1320 | |
|
Sale of the property after 6 years Sale price : 1400 000 Capital gains : 400 000 Capital gains tax : 27% (-10%) |
0 | 97200 | 97200 | France |
| 16% (-10%) | 0 | 57600 | 57600 | CEE |
| 33,33%(-10%) | 0 | 120000 | 120000 | Hors CEE |
If I am French, I save approximately 120,100 euros, this savings taking into account a marginal rate of the wealth tax (0,55%). (3820 X 6 years = 22.900 + 97200).
If I am a European Community resident, I'll save 80,500 euros.
If I am a non-European Community resident, I'll save 142,900 euros.