J'ai fait appel à Maître Uzan dans le cadre d'une procédure fiscale longue et techniquement complexe. Analyse rigoureuse du dossier, réponses précises dans des délais parfois très courts, et surtout une vraie capacité à maintenir un dialogue constructif avec l'administration plutôt qu'à durcir inutilement les positions.
Il a pris le temps de m'expliquer chaque étape et les options possibles, sans jargon et sans promesses excessives. Le dossier s'est conclu par une issue négociée.
Un accompagnement sérieux, du premier échange jusqu'au suivi complet de l'exécution. Je recommande sans réserve.
Foreign Rental Income
By Marc Uzan, French tax lawyer in Paris
How Can I Declare My Foreign Rental Income and Optimise Its Taxation?
Form 2047, micro-foncier regime up to €15,000, tax credit on line 8TK
Tax lawyer at the Paris Bar since 2008 – exclusive tax law practice, including property abroad
Summary
- A French tax resident is in principle taxable on their foreign rents (article 4 A of the CGI), subject to tax treaties
- Micro-foncier regime for rental income up to €15,000: 30% allowance, no form 2044
- Above that: actual-expenses regime (form 2044); depending on the treaty, tax credit (box 8TK) or exemption with the effective rate
- Tax lawyer: choice between micro and actual-expenses regimes, application of tax treaties, defense in a DGFIP audit
What are the tax obligations for foreign rental income received by a French resident?
- Reporting on form 2047: Foreign-source rental income must in principle be reported on schedule 2047, section I "Revenus fonciers de source étrangère" (foreign-source rental income).
- Carrying over to the main return: under the micro-foncier regime, gross rents are in principle carried over to box 4BE of return 2042; under the actual-expenses regime, net income is determined on return 2044.
- Social levies: rental income is in principle subject to social levies at 17.2% (a rate not affected by the 2026 increase), subject to the tax treaty; persons affiliated to a social security scheme of another European Union State, the EEA or Switzerland are in principle liable only to the 7.5% solidarity levy.
- Tax credit on line 8TK: where the treaty provides for a credit equal to the French tax, the rents are also carried over to box 8TK; the credit then corresponds to the French tax relating to that income.
How do you complete form 2047 step by step for an apartment rented out in Spain?
- Section I – foreign rental income: the gross rents received during the year are in principle entered in euros, at the ECB rate on the date of receipt.
- “Tax paid abroad” column: this in principle shows the amount of tax paid in Spain.
- Carrying over to return 2044 or 2042: the rents are then carried over to return 2044 (actual-expenses regime) or, under the micro-foncier regime, to box 4BE of return 2042.
- Box 8TK: the amount to be carried over is that of the rental income concerned (and not that of the Spanish tax); the credit in principle corresponds to the French tax on that income.
- Supporting documents: it is prudent to keep the evidence of the tax paid in Spain, with a translation if necessary.
Each treaty has its own method: for an apartment in Portugal, for example, the France–Portugal treaty exempts the rent from French income tax (article 24); it is only taken into account for the effective rate, in box 4EA (actual-expenses regime) or 4EB (micro-foncier) of the tax return, with no form 2047 and no line 8TK.
Micro-foncier or actual-expenses regime: which regime should I choose for my foreign rental income?
| Criterion | Micro-foncier | Actual-expenses regime | Form |
|---|---|---|---|
| Threshold | Gross rents ≤ €15,000 a year | Above €15,000, or on option | 2047, then 2042 (micro) or 2044 (actual) |
| Allowance | Automatic 30% | Deduction of actual expenses | — |
| Capital gain | Real estate capital gains regime | Real estate capital gains regime | 2048-IMM |
How can double taxation be avoided thanks to the tax credit on line 8TK and tax treaties?
- Bilateral tax treaties: they determine the method applied in France, namely exemption (often applying the effective rate) or a tax credit equal to the French tax.
- Tax credit equal to French tax: Where the treaty so provides, France grants a credit equivalent to the French tax on the income reported.
- Supporting documents: the foreign withholding notice should in principle be attached or kept, in particular for line 8TK of the return.
What I see in my cases
In my cases, foreign rents often come on top of other income and assets held abroad, with significant stakes. Tax treaties make it possible to avoid double taxation and often offer optimisations. But the tax authorities know these rules poorly and tend to refuse anything poorly presented: a clear, documented file from the outset makes it possible to answer any questions simply.
Rents are, along with dividends, interest and capital gains, the foreign income I come across most often. They are a good illustration of the most frequent error in this area: confusing the tax credit and the exemption with the effective rate rule, and applying a method other than the one provided for by the treaty. For the real estate wealth tax (IFI), I also see properties located abroad being undervalued, particularly when the cadastral value is used instead of the market value.
Why engage a tax lawyer for your foreign rental income?
- Strategic choice between the micro-foncier and actual-expenses regimes: The lawyer simulates both options, takes into account actual expenses (works, costs, interest), and measures the long-term benefits (e.g. deficit that can be carried forward for 10 years).
- Tax treaties: They identify the applicable treaty and the method applied in France (exemption or a tax credit equal to the French tax).
- Preparing for tax audits: they analyse the risks linked to failing to report the income from a foreign property.
- Estate planning: holding through a company, split ownership, real estate wealth tax (IFI): the lawyer analyses the French tax consequences of each option.
FAQ
Why does France tax me when I have already paid local tax on my foreign rental income?
As a French tax resident, you are in principle taxable on your worldwide income, including income from a property let abroad. Even if the country where the property is located has already levied tax on your rents, France may also tax that income, depending on the applicable tax treaty.
To avoid double taxation, the treaty in principle provides either for a tax credit in France (often equal to the French tax, box 8TK) or for an exemption in France with the income taken into account for the effective rate; it is useful to complete form 2047 carefully and to keep the supporting documents.
How do you complete form 2047 online for rental income received in the United Kingdom?
In principle, in the online version of the return, schedule 2047 contains a section "Revenus fonciers de source étrangère" (foreign-source rental income), in which the gross amount of rent received, converted at the ECB rate, and then, where applicable, the tax withheld locally are entered. The net result is then transferred to return 2044 (actual-expenses regime) or to form 2042 (micro-foncier).
Finally, where the treaty provides for a credit equal to the French tax, the rents are in principle carried over to box 8TK; it is useful to keep the foreign tax notices.
What should I do if I forgot to report foreign rental income for the last three years?
Before taking any step, it is advisable to consult a lawyer to analyse your situation: depending on the case, filing amended returns for the years concerned, including schedules 2047 and 2044 if applicable, may be an appropriate solution. A spontaneous regularisation before any audit may, in some cases, limit the penalties, which can reach 40 to 80% in the event of deliberate failure or fraudulent conduct. It may also be useful to reconstruct any missing supporting documents (receipts, proof of payments).
The assistance of a tax lawyer is recommended to oversee the procedure, prepare a complete file and limit the tax consequences.
Glossary
- Micro-foncier: a simplified regime for reporting gross rental income of up to €15,000 per year. It provides an automatic 30% allowance without having to provide details of expenses.
- Form 2047: a schedule in principle required for foreign-source income, to be completed before the main return (2042 or 2044).
- Tax credit on line 8TK: avoids double taxation by neutralizing French tax on income already taxed abroad.
- 30% allowance: automatic deduction applicable under the micro-foncier regime, without supporting documents, regardless of the country where the property is located.
Checklist: 6 points for declaring foreign rent
- Analysis of your situation by a lawyer.
- Local supporting documents (tax notices, rent receipts, proof of payment).
- Gross amounts converted into euros, in principle at the rate on the day of receipt.
- Choice between micro-foncier and the actual-expenses regime, to be made with your lawyer depending on the amount of rents and expenses.
- Form 2047, then return 2042 (micro) or 2044 (actual expenses).
- Box 8TK or boxes 4EA / 4EB, depending on the method provided for by the treaty.
Further reading
- International tax treaties (OECD Model)
Most tax treaties concluded by France allocate the taxation of rental income to the State where the property is located.
In practice:
- either France exempts this income (often applying the effective rate to the rest of the income),
- or it grants a tax credit equal to the French tax (box 8TK).
A lawyer can help you interpret the specific clauses depending on the country in which you invest.
