Real Estate Tax Services in France
Real estate income, LMNP, LMP, SCI, real estate VAT, capital gains, IFI—real estate taxation is a maze. Every wrong choice can have consequences that last for years. We guide you carefully through every step.
Six tax topics, integrated expertise
Rental Income & BIC/Property Tax Regimes
Real estate income (unfurnished rentals), BIC under the simplified or actual tax regime (furnished rentals)—we select and manage the most advantageous tax regime for each property, each situation, and each tax year.
2044 / 2035
Micro-land use
Micro-BIC
Actual Tax Regime
LMNP & LMP Depreciation
Structuring the amortization schedule is key to achieving tax efficiency in furnished rentals. When done right, it can completely eliminate rental income tax for many years.
Amortization Schedule
Components
Durations
Carryover of Deficits
Capital Gains on Real Estate
Accurate calculations, application of deductions based on holding period, applicable exemptions, and the impact of the 2025 Finance Act reform on the recapture of LMNP depreciation. We estimate the tax cost of each sale.
Income Tax and Social Security Deductions
LF 2025
Exemptions
Non-residents
SCI, family-owned SARLs & other structures
Accounting and Taxation for Real Estate Partnerships and Corporations — Income Tax (IR) or Corporate Income Tax (IS), depending on your time horizon. Balancing wealth accumulation with flexibility upon resale.
SCI IR / IS
Family LLC
SAS
Holding immo
Real Estate VAT
VAT on real estate brokerage transactions, VAT on hotel-related services, VAT calculated on the margin versus the total price, and VAT recovery on construction work—a technical field in which we excel.
VAT on the margin
Non-hotel Accommodations
Real Estate Developer
VAT Refund
IFI & Social Security Contributions
Calculation and Filing of the IFI (Real Estate Wealth Tax) — deductible liabilities, shares in real estate investment companies (SCIs), and excluded properties. Social security contributions and reduced rates for non-residents of the EU/EEA.
IFI
Social Security Contributions 17.2%
Non-residents 7.5%
Deductible Assets
Real Estate Tax Services for International Clients
Your real estate portfolio deserves accounting expertise that matches your ambitions
Investing in French real estate can be highly rewarding, but taxation is complex and multifaceted. At L2A Advisory, we provide comprehensive tax services tailored for international clients, covering landlord obligations, corporate structures, VAT, and capital gains. Our goal is to ensure compliance while optimizing your financial outcomes.
Why Specialized Real Estate Tax Guidance is Essential
France’s tax system for real estate is intricate, with different rules for residential, furnished, unfurnished, and commercial properties. Missteps can result in penalties, excess taxation, or compliance issues. By working with L2A Advisory, investors benefit from:
- Up-to-date knowledge of French tax regulations
- Optimized taxation strategies for landlords and investors
- Clear English guidance to avoid miscommunication
- Support for personal and corporate real estate investments
Common and Costly Mistakes
File under the micro-BIC tax regime when the actual income tax regime with depreciation would allow you to pay no taxes—for ten years.
Switching to the LMP tax bracket without having planned for it, and then discovering that mandatory SSI contributions amount to 30% of year-end profits.
Selling a property after claiming LMNP depreciation without having anticipated the 2025 Finance Act reform regarding the reinstatement of taxable income.
Choosing an SCI taxed under corporate income tax for a rental property without realizing that there will never be a tax deduction based on the length of ownership upon resale.
Landlord Tax in France (Taxe Foncière)
■ Understanding the Taxe Foncière
The taxe foncière is an annual property tax imposed on owners of both residential and commercial properties in France. This tax is calculated based on the valeur locative cadastrale, which estimates the potential rental value of a property, taking into account location, size, condition, and amenities. The local municipality applies a tax rate to determine the amount owed.
■ Payment Options
Property owners can choose between:
Monthly Settlement
Spreads payments across the year, easing cash flow management.
One-Off Payment
Typically due mid-October; requires full upfront payment.
■ Compliance and Support Services
At L2A Advisory, we assist clients with:
Tax Compliance Assistance
Accurate calculation, timely payments, and monitoring of obligations.
Valuation Challenges
Reviewing the administration’s property valuation with expert DPLG architects to potentially reduce the tax burden.
Real Estate Taxation in France
Real estate tax laws change every year. Our role isn’t just to file tax returns—it’s to anticipate changes, run simulations, and choose the strategy that maximizes your wealth over the long term.
Overview of Real Estate Tax Categories
Real estate taxation in France is multi-layered, covering several tax types:
Passive Taxes
- Taxe Foncière: Annual property tax for all owners, calculated based on estimated rental value.
- Office tax also exist in some cities as Paris for real estate units with a corporate use.
- Assistance includes compliance, payment management, and challenging excessive valuations.
Personal Income Tax on Rental Income
- Micro Regime: For annual income below €15,000; standard deduction of 30% (furnished) or 50% (unfurnished).
- Real Regime (Régime Réel): Deduct actual expenses (maintenance, repairs, loan interest, management fees). Ideal for higher rental income or high expenses; requires detailed bookkeeping.
Corporate Income Tax (CIT)
Applicable to corporate investors. Includes depreciation, deductions, and specific corporate rates. L2A Advisory ensures compliance and tax efficiency.
VAT (Value Added Tax)
Commercial leases typically subject to VAT; residential usually exempt, but exceptions exist for furnished rentals.
Owning Real Estate Through a Company
Services Provided by Certified Public Accountants in France
Benefits of Holding Real Estate via a Company
Many investors hold property through entities like SCI, SARL, SNC, or SCCV for advantages such as:
- Tax optimization
- Better financing options
- Limited liability
Société Civile Immobilière (SCI)
Non-commercial entity for holding offices or unfurnished residential properties.
■ Tax Options
CIT Regime
Corporate taxation, deduction of building amortization, lower rates on reinvested profits.
Transparent Entity
Profits taxed at shareholder level; avoids double taxation, suitable for smaller or multi-asset investments.
Family-Owned SARL
Enables furnished lease activity through a tax-transparent entity.
Key advantages: deduction of building amortization and reduced capital gains tax on sale.
SNC (Société en Nom Collectif)
- Used for commercial property with variable rent components.
- Tax transparent by default; can opt for CIT.
SCCV (Société Civile de Construction Vente)
- Specialized for real estate development projects.
- Ideal for building and selling assets while applying personal income taxation.
Choosing the Right Structure
Selecting the optimal legal structure is critical. L2A Advisory collaborates with tax and corporate lawyers to identify the best solution based on your investment goals.
Capital Gains Tax on Real Estate in France
Services Provided by Certified Public Accountants in France
Understanding Capital Gains Tax
Applies to profits made from selling real estate and includes:
Personal Income Tax
Flat 19% on capital gains, mitigated by ownership duration.
Social Contributions
17.2%, fully exempt after 30 years.
Deductions Based on Ownership Duration
Personal Income Tax
Progressive exemption begins at the 6th year, full exemption at 22 years.
Social Contributions
Gradual exemption completed after 30 years.l income taxation.
Additional Tax on Gains > €50,000
Progressive surtax from 2% to 6% for gains exceeding €260,000.
L2A Advisory Support
At L2A ADVISORY, we specialize in helping property owners navigate the complexities of capital gains tax on real estate.
Our services include:
Tax Planning
Timing of sale, renovations, and investment strategies.
Filing Assistance
Accurate calculations and submission of capital gains tax.
Deduction Guidance
Maximize allowable deductions and optimize tax outcomes.
Why Choose L2A Advisory for Real Estate Tax Services
Expert Knowledge
L2A Advisory has in-depth experience with French real estate taxation, including corporate, landlord, and capital gains taxes.
Clear Communication in English
Simplifies compliance for international investors and avoids costly misunderstandings.
Tailored Solutions
Services are customized to investment type, size, and client objectives.
Comprehensive Support
From initial investment to ongoing tax compliance, L2A Advisory guides clients at every step.
Risk Management and Optimization
Ensure full compliance with French laws while identifying opportunities to reduce tax liabilities.
Contact L2A Advisory today to speak with an English-speaking CPA in France and secure expert guidance for your business.
What people ask of us
What is the Taxe Foncière and how is it calculated?
The Taxe Foncière is an annual property tax imposed on all property owners in France, whether residential, commercial, or land. It is calculated based on the valeur locative cadastrale, an estimated rental value determined by the French tax administration, adjusted by local municipal tax rates. Factors such as property size, location, and condition influence this valuation. Owners can choose to pay in one installment (generally due in October) or by monthly direct debit. At L2A Advisory, we assist clients with compliance and payment, and, when necessary, challenging excessive valuations with the help of experts (architect) to reduce the tax burden.
How do I declare rental income for personal or corporate property in France?
Rental income must be declared either under personal income tax or corporate tax, depending on the ownership structure. For individuals, unfurnished rentals are taxed under revenus fonciers (micro-foncier or régime réel), while furnished rentals fall under the BIC category (micro-BIC or régime réel). For companies such as an SCI or SARL, income may be subject to corporate income tax (IS/CIT), allowing for amortization and specific deductions. VAT obligations may also apply, particularly for commercial or furnished leases. At L2A Advisory, we help both individuals and corporate investors choose the most efficient regime, maintain compliant records, and file accurate returns.
Which company structure should I use to hold my real estate?
The optimal structure depends on your investment goals, property type, and tax strategy. An SCI (Société Civile Immobilière) is widely used for holding unfurnished residential property, offering flexible options between personal taxation and corporate taxation. A SARL de famille allows furnished rentals under a tax-transparent regime with amortization benefits. SNCs can be used for commercial property with variable rent components, while SCCVs are tailored for development and resale projects. Each structure has specific tax and legal implications. At L2A Advisory, we work closely with corporate and tax lawyers to recommend the most suitable structure for your investment portfolio.
How does capital gains tax work in France?
Capital gains tax (impôt sur la plus-value immobilière) applies when selling French property. Gains are taxed at a flat rate of 19% plus 17.2% social contributions, with exemptions increasing over time. For personal income tax, a progressive exemption begins after 6 years and is complete after 22 years. Social contributions are fully exempt after 30 years of ownership. High-value gains above €50,000 may be subject to an additional surtax of 2–6%. At L2A Advisory, we help investors plan the timing of sales, maximize available deductions, and correctly file capital gains tax to optimize the outcome of their transactions.
Can L2A Advisory assist non-French investors in English?
Yes. All our services are delivered in English, ensuring that international investors clearly understand French real estate tax rules without confusion. We simplify complex regulations on landlord taxation, corporate structures, VAT, and capital gains. Our team also coordinates with English-speaking notaries, lawyers, and bankers to provide seamless support throughout acquisitions, ownership, and eventual sales. Whether you are an individual investor or an international group, L2A Advisory ensures compliance with French tax laws while offering tailored strategies to reduce liabilities and optimize returns—all explained in clear English for your peace of mind.