Taxation of Foreign Rental Income: Form 2047

The taxation of foreign rental income (revenus fonciers) in France is governed by form 2047. This form is used by French taxpayers who own real estate abroad that generates rental income.

Form 2047 is used to report rental income from property located outside France. It is important to note that foreign rental income must also be reported in the country where the property is located, in accordance with local tax rules.

To complete form 2047, the taxpayer must provide information about the foreign real estate, including the addresses, the amounts of rent received, deductible expenses, as well as any exempt income.

Once form 2047 has been duly completed, it must be attached to the annual income tax return (form 2042) and sent to the French tax authorities (administration fiscale).

Taxation of Foreign Real Estate Capital Gains: Form 2048 IMM

When an individual realises a real estate capital gain on a property located abroad, this gain is subject to tax in France (exception: certain international treaties make it possible not to be taxed in France; consult a tax lawyer). The form used to report these gains is form 2048 IMM.

Form 2048 IMM is used to report real estate capital gains realised abroad, whether they arise from the sale of a property or from any other disposal for consideration (exchange, contribution…).

In the form, the taxpayer must provide information about the property sold, such as its address, its acquisition date, its sale price, as well as any expenditure incurred to improve the property.

Once form 2048 IMM has been completed, it must be sent to the registration office (service de l’enregistrement).

Please note that the deadline is very short: 1 month!

Taxation of Foreign Dividends and Interest: Form 2047

Foreign investment income received by individuals who are tax residents of France must also be reported. Form 2047 is used for this purpose.

Form 2047 is used to report foreign investment income, such as interest, dividends, royalties or capital gains on securities realised abroad.

The taxpayer must provide the necessary information on form 2047, in particular the amounts received, the countries from which the income originates, as well as any withholding tax already deducted in the foreign countries.

Once form 2047 has been completed, it must be attached to the annual income tax return (form 2042) and sent to the French tax authorities.

Reporting Foreign Accounts: Form 3916

In France, every individual who is a tax resident is required to report bank accounts, life insurance policies and securities accounts held abroad. This obligation also applies to inactive accounts!

Form 3916 is used to report foreign accounts held by French taxpayers. This form enables the tax authorities to combat tax fraud and ensure greater tax transparency.

The taxpayer must provide the information required on form 3916, such as the name of the bank, the address of the account and the account number (but not the account balance).

Form 3916 must be sent to the French tax authorities together with the annual income tax return (form 2042).

Conclusion

In France, the taxation of individuals’ foreign income is a complex process that requires several specific forms to be completed. Foreign rental income is reported on form 2047, foreign real estate capital gains are reported on form 2048 IMM, foreign investment income is reported on form 2047, and finally, foreign accounts must be reported on form 3916.

It is essential to meet these reporting obligations in order to comply with French tax legislation and avoid any risk of penalties or sanctions. In case of doubt or difficulty, it is advisable to call on a tax lawyer for personalised and accurate advice.