Taxes & Impots

Taxes and letting your property. 

The following taxes are applicable when letting your property in France.

  • Taxe de Séjour (tourist tax)
  • Impôt Foncières (tax on rental income)

We will not go into taxes not related to the letting of a property such as the Taxe Foncières, Taxe d’Habitation and Taxe sur la plus value, etc.

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1) Tourist tax | Taxe de Séjour.

Tourist tax - called Taxe de Séjour (TdS) in France - is a general local tax. It is levied by the relevant municipality to a person who is not registered in the municipality and who resides there paying a fee. The idea is that the TdS finances facilities in the municipality beneficiary to tourists.

In France, there is a legal obligation to charge Taxe de Séjour (hereinafter: TdS) to all tenants aged 18 and older, to declare and pay it to the municipality where your villa is located. This applies not only to the weeks that you let via VillaSud, but also for the weeks via any other platform or agency or privately letted.

The method of collection, declaration and remittance of the TdS is laid down by law: “Le vacancier doit payer la taxe de séjour au professionnel qui assure le service de réservation par internet pour le compte du propriétaire”.

This means that every rental agency, including VillaSud, has to not only collect the TdS, but also declare all bookings made via its platform. In addition to the declaration, the rental agency also has to pay the TdS to the municipality.

If you wish, you can read this on the Service Public page of the French government; in French or in English. For additional information, please refer to the Guide Practique Taxes de Séjour. There you will find a summary of this information about the TdS.

For 2021 and beyond, VillaSud is bound by law to collect, declare and pay the TdS for all the bookings made via our platform. 

What do I do?

  • Are you letting exclusively via VillaSud? Then you do not have to do anything. VillaSud takes care of the complete administrative proces and ensures that the TdS is collected from your tenants, declared and paid to the municipality where your villa is located.
    • Are you not letting exclusively via VillaSud? The concerning agency or platform will surely address you regarding the TdS. 
    • Do you also let privately? Then you still have to declare and pay for these weeks yourself. 
    • Are you letting professionally as a registered "Loueur en meublé professional"? In that case you need to  collect, declare and pay yourself.
    • Is the villa registered as a Societe Civile Immobiliere? Again you must collect, declare and pay yourself including the weeks booked by VillaSud. 

    In case you also need to declare the TdS yourself (see 2 examples above) you can do so via the webpage of the municipality or the Communauté des Communes to which your municipality belongs.

    On this page you can read an overview compiled by VillaSud of which Communauté des Communes a municipality belongs to.

    An example; Sainte Maxime has its own web page for the Taxe de Séjour Sainte Maxime.

    Are you only renting out your villa through VillaSud? Then all you have to do is send VillaSud the registration number of your home issued by your municipality. This is a 13 digit combination of number and digits. e.g. 87109 000003 HK. See also the item Registration.

    What will VillaSud declare?

    VillaSud makes a declaration based on;

    • the address of the villa or postal code.
    • the registration number of the villa (See also item Registration)
    • the number of adults x the number of nights of all your bookings via VillaSud.

    Registration  

    Are you letting as a private person? Than it is very often (deopend on which municipality) mandatory to register the property. 

    • Registration is (often) mandatory for private rental,
    • You can apply for a registration number at your municipality,
    • For some municipalities, applications can be made online via the web page; www.declaloc.fr
    • The number consists of a 13 digit combination of number and digits. e.g. 87109000003HK

    An example; For Sainte Maxime, applications can be made online directly at the municipality of Sainte Maxime.

    Have you not yet given us a registration number? Then we would like to receive this from you as soon as possible. It is a 13 digit combination of number and digits. e.g. 87109 000003 HK.

    How much is the Taxe de Séjour (TdS)?

    The amounts differs per commune. What is the rate for your villa?

    • The rate that applies to the Communauté des Communes in which your municipality is located.
    • It can make a difference whether your villa is classified or not. See also item Classification.
    • No classification? Then a higher TdS rate can be applicable. 

    On the following information webpage of the French government you can see which rate applies to your villa.

    See here also a list drawn up by VillaSud which municipality belongs to which Communauté des Communes.

    See here for the rates applicable in 2021 for a classified villa in Sainte Maxime;

    • Classification 5 stars € 2.30 per night
    • Classification 4 stars € 2.30 per night
    • Classification 3 stars € 1.50 per night
    • Classification 2 stars € 0.99 per night
    • Classification 1 star € 0.83 per night

    For a villa in Sainte Maxime, with a classification of 4 stars, a rate of € 2.30 per person per night applies.

    Suppose you have a classified 4 star villa suitable for 8 people and you rent it out to 4 adults and 2 children. TdS Due; 4 persons x 7 nights is 28 nights x € 2.30 = € 64.40

    Classification

    The TdS amount is based on:

    • The number of stars resulting from the classification
    • Whether the villa is classified at all.

    We strongly advise you to have your villa classified. In case of non-classification, a (usually higher) rate of TdS is applicable.

    The classification itself is done by an independent assessment called Aout France and to be carried out by an authorized inspection body. Often a local commercial entity. This classification is completely separate from the classification that VillaSud gives to your villa.

    Classification also offers some advantages with regard to the income tax that is levied on the rental income.

    For information on how to achieve classification, please refer to the Atout France webpage.

    N.B. The number of stars in a classification can also be determined at the request of the owner. As the owner you therefore have the choice to "only" go for a 3 star rating. The higher the number of stars, the higher the TdS.

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    2) Income tax | Impôt Foncières.

    Another tax related to letting is the income tax; Impot Foncières.

    The following applies for 2021; if the income from a privately rented house is more than €895 and less than €85,800, there is an obligation to pay income tax on the rental income in France.

    Just as in the UK, this declaration is the responsibility of the taxpayer. Declaration is made at the tax office for foreigners SIPNR.

    In this example we assume a second home of a non-resident in France.

    The tax is;

    • 27.5% of the profit up to a gross rental turnover of € 895 to € 27.519 per year and
    • 37.5% of the profit of the gross rental turnover of € 27.519 to € 85.800 per year

    What is Profit? Calculations are based on a theoretical profit of:

    • 29% of the gross turnover if the holiday home is classified
    • 50% of the gross turnover in case the holiday home is not classified

    For a classified villa, the calculation is as follows: 

    • The profit is 29% on the rental income x 27.5% is 8% on the tranche €895 to € 27.519 p/y
    • The profit is 29% on the rental income x 37.5% is 10.9% on the tranche €27.519 to € 85.800 p/y

    For an unclassified villa, the calculation is as follows:  

    • The profit is 50% on the rental income x 27.5% is 13.75% on the tranche € 895 to € 27.519 per year
    • The profit is 50% on the rental income x 37.5% is 18.75% on the tranche € 27.519 to € 85.800 per year

    It is therefore very worthwhile to have the house classified. With a rental income of € 50.000, you pay an average of 10% income tax per year. In this example only € 5.000.

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    Useful addresses

    Web page of the French government: Tourist tax section.

    Web page of the French government: Tariffs section Tourist tax.

    Webpage Atout France with information about Classification of your home.

    Web page for applying for the municipal registration number.

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    Disclaimer 

    VillaSud strives to always provide correct and up-to-date information on this website. Although this information has been compiled with the greatest possible care, VillaSud does not guarantee the completeness, correctness or topicality of the information. The legal information on the website is of a general nature and cannot be regarded as a substitute for legal advice.

    Please let us know if you notice any errors or ambiguities! Then we can correct it as soon as possible.