If you rent out your second home on the Côte d’Azur and, let’s say, you receive 50,000 euros per year in rental income, how much tax do you pay in France? The tax you have to pay in France depends on several factors: whether the property is furnished or unfurnished, your residence status (French resident or non-resident) and the expenses you incur.
Main factors that influence tax liability
Type of rental
Unfurnished rental: Taxed under the category revenus fonciers. If your annual rental income is higher than 15,000 euros (which is the case for 50,000 euros), you must use the régime réel, whereby you deduct actual expenses (e.g. maintenance, insurance, property management costs) from your gross income to determine your taxable income.
Furnished rental: Taxed under the category bénéfices industriels et commerciaux (BIC). If your income is less than €77,700, you can benefit from the micro-BIC regime, which applies a 50% exemption, meaning that you are only taxed on half of your gross income.
Residency status
French residents: Taxed on their worldwide income at progressive rates (0% to 45% depending on income level) and subject to social security contributions of 17.2%.
Non-residents: Taxed only on income from France, with a minimum tax rate of 20% on rental income, plus social security contributions (usually 17.2%, but possibly reduced to 7.5% if you are covered by social security in another EU country).
Social Security contributions:
These are additional levies on top of income tax.
Residents pay 17.2%.
Non-residents pay 17.2%, unless exempted or reduced to 7.5% under EU social security agreements.
Tax calculation examples.
These calculations are not binding and are for example purposes only. Consult a tax advisor with your specific circumstances for an exact calculation.
Unfurnished rent (non-resident)
Gross income: €50,000
Expenses: Assume 30% of gross income (€15,000), a typical estimate for unfurnished rent.
Taxable income: €50,000 – €15,000 = €35,000
Income tax:
Non-residents have a minimum tax rate of 20%.
20% of €35,000 = €7,000
Social security:
If covered by EU social security, the rate can be 7.5%.
7.5% of 35,000 = 2,625 euros
Total tax: 7,000 + 2,625 = 9,625 euros
Furnished rental (non-resident)
Gross income: 50,000 euros
Tax regime: Micro-BIC (since 50,000 euros is less than 77,700 euros)
Taxable income: 50% of 50,000 = 25,000 euros (because of the 50% deduction)
Income tax:
Minimum 20% for non-residents.
20% of 25,000 = 5,000 euros
Social security contributions:
Based on 7.5% (EU coverage).
7.5% of 25,000 = 1,875 euros
Total tax: 5,000 + 1,875 = 6,875 euros
Unfurnished rental (French resident)
Gross income: 50,000 euros
Expenses: Assume 30% (15,000 euros)
Taxable income: 35,000 euros
Income tax:
Residents are taxed progressively. For 35,000 euros as additional income, the tax depends on your total income. Using 2023 rates:
0% on the first €10,777 = €0
11% on €10,778 to €27,478 (€16,701) = €1,837
30% on €27,479 to €35,000 (€7,522) = €2,257
Total income tax = €1,837 + €2,257 = €4,094
This assumes €35,000 is your only taxable income; if you have other income, the rate may be higher (e.g. 30% on the full €35,000 = €10,500).
Social charges: 17.2% of 35,000 = 6,020 euros
Total tax: 4,094 + 6,020 = 10,114 euros (or up to 16,520 euros if you are in a higher bracket)
Furnished rental (French resident)
Gross income: 50,000 euros
Tax regime: Micro-BIC
Taxable income: 25,000 euros
Income tax:
Based on the 30% bracket for this part (if your other income pushes you there).
30% of 25,000 = 7,500 euros
(If income is lower, for example 11% bracket, it can be as low as 2,750 euros.)
Social charges: 17.2% of 25,000 = 4,300 euros
Total tax: 7,500 + 4,300 = 11,800 euros (or as low as 7,050 euros if in a lower bracket)
Summary of tax estimates
Non-resident, unfurnished: ~9,625 euros
Non-resident, furnished: ~6,875 euros
Resident, unfurnished: ~10,114 to 16,520 euros (depending on total income)
Resident, furnished: ~7,050 to 11,800 euros (depending on total income)
The Côte d’Azur is known for its booming holiday rental business, so your property may well be furnished, potentially reducing your tax bill (e.g. ~6,875 euros if you are a non-resident). However, if it is a long-term, unfurnished rental, the tax may be higher (e.g. ~9,625 euros for a non-resident or up to 16,520 euros for a resident).
So, investing in and buying a property in Cannes, for example, pays off. You will have more net income than a local Frenchman or Frenchwoman. Do you want to start earning money with your savings? Then contact us!
Tourism statistics 2023
Tourism economy €6.5 billion spent directly by tourists and generates €12 billion in income.
75,000 direct jobs in tourism, which generate the same number of indirect jobs.
The contribution of tourism to the economy is more than 15% versus 7.5% in France.
600 million in tourist investments per year, 3rd place after Paris and Savoy.
Hotel RevPAR (revenue per available room), taxes included, 2023): average €135 all hotels,
€209 in 4-5* / €71 in 3* / €44 in 2* / €31 in 1*.
60% of total expenditure is generated by foreign tourism.
20% of total expenditure is generated by business tourism.
11.5 million tourists and 70 million overnight stays. Tourists stay an average of 6.2 nights.
An average of 200,000 visitors per day. The tourist population peaks on the weekend of 15 August with 650,000 tourists.
The summer season: less than 1 in 2 arrivals. However, 6 out of 10 overnight stays are longer stays in the summer.
January is the lowest month with 5%. 14% of tourists travel for business, including 140,000 conference participants (via Nice Airport).
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