Property tax in France for foreigners and US non-residents: US expat guide

Written by  Susan Turcotte, CPA

Last updated Jun 19, 2026

Non-residents who own property in France owe French tax. Property tax in France for non-residents covers taxe foncière (an annual ownership levy), taxe d'habitation on second homes, income tax on rental earnings, capital gains tax on sales, and the IFI wealth tax if net French real estate exceeds €1.3 million (2025). Owning the property is enough to create these obligations – living outside France does not change that.

For US citizens and green card holders, there is a second layer. Rental income from French property must be reported in US dollars on your Form 1040 under Schedule E. Sale gains go on Form 8949, and Schedule D. French bank accounts connected to the property may trigger an FBAR filing if aggregate balances exceeded $10,000 at any point during the year. See our full guide to taxes in France for US expats, and read our overview of whether Americans can buy property in France for context on the purchase itself.

Quick answer: What property taxes do non-residents pay in France?

Non-residents who own French real estate generally face up to six categories of French property-related tax. French property tax for non-residents covers taxe foncière on ownership, taxe d'habitation on second homes, income tax on rental earnings, capital gains tax on sales, the IFI wealth tax on high-value holdings, and – in some furnished rental situations – the CFE local business levy. Each applies independently and based on how the property is used.

The table below summarizes the 6 French property-related taxes that can apply to non-resident owners, showing who owes what, at what rate, and when payment is due.

The French tax authority publishes guidance for non-resident property owners on impots.gouv.fr. The full range of local property taxes is documented at service-public.fr.

Taxe foncière: annual ownership tax in France

Taxe foncière is an annual French property tax paid by the legal owner as of January 1 of each year – residents and non-residents alike – whether the property is occupied, rented, or vacant. The bill is calculated by multiplying the property's cadastral rental value (valeur locative cadastrale) by tax rates set by the municipality and department. For most non-resident vacation homes, the annual bill runs roughly €800 to €3,000, though amounts vary significantly by commune and property size.

The cadastral rental value is a theoretical annual rent figure, originally assessed in 1970 and updated each year by a revaluation coefficient. For 2026, the standard annual revaluation is 0.8% – a planned wider reform to update valuations for "comfort elements" (running water, heating, sanitary fittings) was suspended by the government in late 2025, with any overhaul now expected no earlier than 2027. Taxe foncière notices arrive in September; payment is due October 15. Online payment extends the deadline to October 20 or October 25 with a bank levy authorization. A 10% penalty applies to late payments.

Review the taxe foncière rules at service-public.fr and manage payment through your impots.gouv.fr personal account.

Our guide to foreign property tax explained covers how these ownership costs interact with your US return, and deductible expenses for American property investments cover the US side of the calculation.

The taxe foncière notice may also include the taxe d'enlèvement des ordures ménagères (waste collection charge), depending on the municipality. New builds are generally exempt from taxe foncière for 2 years after completion. Most non-resident second-home owners do not benefit from other relief rules – exemptions for agricultural land or low-income elderly owners on their primary residence do not apply in most cases.

Who pays taxe foncière?

The owner on record on January 1 of the tax year owes taxe foncière for the full year – even if the property is sold in February. If you buy a French property after January 1, the seller typically owes that calendar year's tax. In practice, many purchase contracts include a pro-rata reimbursement clause: the buyer reimburses the seller for the months of new ownership, and that amount is specified in the acte de vente (notarized deed).

This January 1 rule matters for your US cost-basis records. Every taxe foncière notice should be filed away, since French property taxes paid on a rental property are potentially deductible as rental expenses on your US return. Understand how property ownership structures and how they affect your US expat taxes for entity-specific considerations.

Taxe d'habitation: second-home tax for non-residents

Taxe d'habitation on primary residences was abolished in France as of 2023 – no household, regardless of income, owes it on their main home. Second homes and additional properties are different: taxe d'habitation remains fully in force for any property that is not the owner's principal residence. For most non-resident US owners, a French property is treated as a second home because their main residence is outside France, meaning taxe d'habitation is due each year.

The tax is calculated using the cadastral rental value multiplied by local rates set by the commune. Liability is determined by occupancy or ownership status on January 1. Taxe d'habitation notices typically arrive in November – online accounts on impots.gouv.fr receive them from mid-September – and payment is generally due in December for the current year (unless monthly installments are arranged). Furnished annexes, outbuildings, and garages connected to a second home are generally included in the assessment. Review the taxe d'habitation rules at service-public.fr and see the recent updates to second-home taxation for the current context.

If the property is rented to a tenant as the tenant’s principal residence, taxe d’habitation generally does not apply. The owner should ensure that the occupancy declaration correctly identifies the tenant and the property’s use as a principal residence to help prevent an incorrect second-home or vacant-property tax bill.

A vacant property is treated differently. In communes covered by the taxe sur les logements vacants, or TLV, an unfurnished residential property that has been vacant for at least 1 year may be taxable to the owner or usufructuary. The TLV rate is 17% of the cadastral rental value for the first taxable year and 34% for subsequent years. Other communes may impose a separate taxe d’habitation sur les logements vacants, or THLV, under different local rules and rates.

Is there a new French property tax for non-residents?

There is no entirely new French property tax created specifically for non-residents or foreign owners. What many owners encounter – and what drives searches for a "new French property tax for non-residents" – is a surcharge that allows communes in housing-shortage zones (zones tendues) to add between 5% and 60% on top of the standard taxe d'habitation bill on second homes. This surcharge is not new in principle, but it has expanded sharply: in 2025, 1,628 communes applied it – up from 1,461 in 2024 – and around 40% of those opted for the maximum 60% increase.

Since a rules change in late 2023, the surcharge is no longer limited to urban communes of 50,000 or more residents. Any commune designated as a zone tendue can now vote to apply it, including smaller tourist towns along the Atlantic and Mediterranean coasts and in the Alps. Popular ownership destinations – Paris, Lyon, Nice, Bordeaux, Provence, and the Côte d'Azur – are well represented on the list. Check the taxe d'habitation surcharge information on impots.gouv.fr to confirm whether your commune has applied a surcharge, and review vacant property tax rules at service-public.fr if the property is unoccupied.

The US-France income tax treaty does not eliminate taxe foncière, taxe d'habitation, or the second-home surcharge – these are local property taxes that fall outside the treaty's scope.

French property tax for foreigners vs residents

Property tax in France for foreigners largely follows the same local rules as for French residents. Taxe foncière applies to every owner; taxe d'habitation applies to every second-home occupant. No exemption from either tax exists based on nationality or place of residence. The substantive differences arise in how French-source income is taxed, how the IFI wealth tax is calculated, and how applicable treaty provisions interact with the overall picture.

French residents pay income tax on a worldwide basis; non-residents are taxed only on French-source income, including rent from French property and gains from selling it. Non-residents face a minimum income tax rate of 20% on French-source income up to €29,579 and 30% above that threshold (2025 rates), rather than the general progressive schedule – which can produce lower effective rates for residents at moderate income levels. For IFI, French residents are assessed on worldwide real estate above €1.3 million; non-residents owe IFI only on French real estate, which is a narrower base. The official guidance on residency status and non-resident obligations is at service-public.fr and impots.gouv.fr for non-residents.

If you rent out French property: income tax rules

Rental income from French property is taxable in France at a minimum rate of 20% on net income up to €29,579 and 30% above that threshold, plus 17.2% social charges for most non-residents (2025 rates). The rules apply to the 2025 tax year, filed in 2026. Whether the rental is unfurnished or furnished determines which income category and which expense regime applies, since French law treats these as two distinct types of income.

Unfurnished rental income is classified as revenus fonciers (property income). The following 2 reporting regimes are available. Under the micro-foncier regime, you report gross rents and receive a flat 30% deduction – available only if annual gross rents do not exceed €15,000. Under the régime réel (actual-expense regime), you deduct documented costs including management fees, repairs, insurance, taxe foncière, and mortgage interest. You can review the unfurnished rental income rules on impots.gouv.fr.

Furnished rental income is classified as BIC (bénéfices industriels et commerciaux – industrial and commercial profits). For 2025 income, micro-BIC treatment depends on the rental type. Long-term furnished rentals and classified tourist rentals generally use a €77,700 threshold and 50% allowance, while unclassified furnished tourist rentals use a €15,000 threshold and 30% allowance. The régime réel for BIC allows actual-expense deductions and, under qualifying conditions, depreciation. Short-term furnished rentals – Airbnb-style holiday lets – may also trigger the Cotisation Foncière des Entreprises (CFE), a local business levy set annually by the commune. The furnished rental income obligations on impots.gouv.fr cover current rules in full. For the US framework that applies on top of these French rules, the IRS guidance on taxation for international individuals is the authoritative starting point.

For US citizens and green card holders, French rental income must also be reported on Form 1040 in USD, regardless of whether additional US tax is owed after credits. Read our guide to rental properties and your US tax return for how French rental income is treated on Schedule E and how the Foreign Tax Credit applies.

Based on our client scenario at TFX: A US citizen rents out a furnished Paris apartment for €18,000 per year (2025 tax year). Under the micro-BIC regime, the taxable French income is €9,000 (50% deduction). At 20%, French income tax is approximately €1,800. Social charges of 17.2% on €9,000 add roughly €1,548, bringing the total French tax to about €3,348. On her US Form 1040, she reports the full €18,000 converted to USD on Schedule E. She then claims the Foreign Tax Credit on Form 1116 for the French taxes paid, which typically reduces or eliminates additional US tax on the same income.

Can French property taxes be deducted from US rental income?

French property taxes paid on a rental property are generally deductible as rental expenses on Schedule E (Supplemental Income and Loss), provided the property is rented for profit, and the tax is attributable to the rental activity. Taxe foncière – the annual ownership levy – is the primary candidate. If you also use the property for personal purposes during the year, expenses must be allocated between rental days and personal-use days; the IRS requires a pro-rata split, and the personal-use portion is not deductible as a rental expense.

Depreciation is also available for foreign rental property under IRS rules. Foreign residential rental property placed in service after December 31, 2017, is generally depreciated over 30 years under the Alternative Depreciation System (ADS). Review IRS Publication 527 (Residential Rental Property) and IRS Publication 946 (How to Depreciate Property) for the applicable recovery periods and methods, and Schedule E form instructions for the reporting format.

Selling French property: capital gains tax and US reporting

When a non-resident sells French real estate, France taxes the gain at 19% CGT plus 17.2% social charges – reduced to 7.5% for EU/EEA/Switzerland/UK residents affiliated with a qualifying foreign social security scheme (2025 rates). The taxable gain is broadly the sale price minus the acquisition cost, plus eligible improvements and notary fees. Taper relief applies after 5 years of ownership: CGT is reduced by 6% per year from year 6 through year 21, then by 4% in year 22, reaching full exemption at year 22. Social charges are reduced on a separate schedule, reaching zero at year 30.

Based on our client scenario at TFX: A US couple owned a Provence farmhouse for 15 years and sold it in 2025, realizing a net gain of €80,000. The CGT taper relief reduced the taxable base by 60% (10 qualifying years × 6%), leaving a taxable CGT base of €32,000. At 19%, French CGT was approximately €6,080. For the US return, the gain was recalculated entirely in USD using the EUR/USD rates at the time of purchase and sale. Because the euro was relatively weak at the time the couple bought, their USD gain was larger than the euro gain – resulting in additional US federal tax even after applying the Foreign Tax Credit for French CGT paid.

For the US return, gains from selling French property are reported on Form 8949 and Schedule D, calculated in US dollars using the exchange rates at the time of acquisition and sale. French CGT paid is generally eligible for the Foreign Tax Credit on Form 1116, typically reducing or eliminating residual US tax on the same gain. Read our guide on capital gains tax on foreign property and capital gains tax on the sale of your primary residence abroad for the full US treatment. The official French rules for non-resident sellers are published at impots.gouv.fr.

French wealth tax: when IFI applies to non-residents

The Impôt sur la Fortune Immobilière (IFI) – France's real estate wealth tax – applies when net taxable French real estate exceeds €1.3 million as of January 1 of the tax year. For the 2025 tax year, the threshold remains €1.3 million. The rate is progressive: 0.5% on net taxable value above €800,000, rising in steps to 1.5% on net real estate above €10 million. A transitional discount applies on net wealth between €1.3 million and €1.4 million to avoid a cliff edge at the threshold.

Non-residents owe IFI only on French real estate – not worldwide assets. This is narrower than the obligation for French residents, who are assessed on worldwide real estate holdings above the same €1.3 million threshold. Mortgages and property-related debts are generally deductible when calculating the net taxable base, subject to anti-abuse rules that limit deductions on certain financing structures, particularly loans between related parties. The IFI return must be filed by the same deadline as the income tax return (generally mid-May for the prior year's income); the IFI tax bill is typically due by September 15.

If you hold French property through an SCI (Société Civile Immobilière) or another entity, the IFI calculation can be more complex. Non-professional real estate held through transparent or semi-transparent entities is generally included in the IFI base; the treatment depends on how the entity is classified under French law and whether a tax treaty modifies the result. Review the official IFI guidance on impots.gouv.fr if your French real estate approaches the €1.3 million threshold.

US tax implications of owning property in France

Buying French real estate as a US citizen or green card holder does not, by itself, create a US tax event in the year of purchase. Purchase costs, notary fees, and transfer taxes are not immediately deductible – they are capitalized into the property's cost basis and will reduce the taxable gain when the property is eventually sold. The tax implications of owning property in France begin once the property generates income, is sold, or supports financial accounts that trigger US information-reporting requirements.

The following 4 situations create US tax or reporting obligations for owners of French real estate:

1. Rental income: Gross rental income converted to USD must be reported on Schedule E of Form 1040 each year, regardless of how much French tax was withheld or whether additional US tax is owed after credits.
2. Sale gains: The net gain calculated in USD – using the dollar cost basis – goes on Form 8949 and Schedule D in the year of sale.
3. Foreign Tax Credit: French income tax and CGT paid on French-source rental income and gains may qualify for a Foreign Tax Credit on Form 1116. See the IRS guidance on which foreign taxes qualify for the credit.
4. Foreign account reporting: French bank and financial accounts tied to the property may require FBAR or Form 8938 reporting if account balances meet the applicable thresholds.

The French property itself – the real estate – is not a "foreign financial account" and is not reported on FBAR. It is also generally not a "specified foreign financial asset" for Form 8938 purposes. What gets reported are the accounts connected to the property: French bank accounts used to pay the mortgage, collect rent, or hold maintenance reserves. Our guide to FBAR vs. Form 8938 explains which obligations apply and how the thresholds differ.

Do you report French property on FBAR or Form 8938?

Direct ownership of French real estate is not reported on FBAR (FinCEN Form 114), and is not a "specified foreign financial asset" for Form 8938 purposes under standard rules – the property itself is excluded from both filings. The accounts connected to the property are a different matter.

FBAR requires reporting of all foreign bank and financial accounts if the aggregate maximum value of those accounts exceeded $10,000 at any point during the calendar year. A French bank account used to collect rent, pay the mortgage, or hold maintenance funds is a reportable account under this rule. The FinCEN FBAR filing guidance specifies exactly what counts as a foreign financial account. For a second potential reporting layer, the IRS comparison of Form 8938 and FBAR requirements shows how the thresholds differ – Form 8938 thresholds are higher (for expats living outside the US filing individually, $200,000 at year-end or $300,000 at any point), and the form is filed with your tax return rather than separately.

If you hold French property through an entity such as an SCI, the equity interest in that entity may itself be a specified foreign financial asset reportable on Form 8938. Review our guide to Form 8938 reporting for expats for the detailed rules.

Deadlines and payment checklist for French property owners

Managing French property as a US non-resident involves parallel French and US obligations each year. The following 8 administrative tasks keep most US owners current with both systems.

1. Create or access your impots.gouv.fr account: All French tax notices for non-residents are issued here. See the official guidance for non-resident property owners for the setup process, including how to obtain your numéro fiscal.
2. Complete the Biens Immobiliers (property occupancy) declaration: Owners must declare the occupancy status of each property annually via their impots.gouv.fr account. Skipping this can trigger incorrect tax bills or a formal enquiry.
3. Watch for your taxe foncière notice (September): Payment is due October 15 by cash, cheque, or transfer; October 20 online. Set up direct debit through impots.gouv.fr to avoid the 10% late-payment penalty.
4. Watch for your taxe d'habitation notice (November): Second-home owners receive their notice from November; payment is generally due in December. Confirm whether a housing-shortage surcharge applies to your commune.
5. File your French non-resident income tax return (if you rented the property): The annual return covers prior-year French rental income. Deadlines for non-residents typically fall in May or June of the following year.
6. Obtain your numéro fiscal: The French tax identifier is required to file returns and access your impots.gouv.fr account. See how to set up your personal space on impots.gouv.fr.
7. Record exchange rates for every transaction: Save the EUR/USD rate for rental receipts, tax payments, and capital expenditures. The IRS generally requires USD conversion using rates consistent with official IRS annual averages; keep your own records for amounts that need precision.
8. Retain all closing and tax documents: Keep your acte de vente, annual taxe foncière notices, rental statements, mortgage interest records, and invoices for improvements. These form the basis of your US capital gains calculation when the property is eventually sold.

Common mistakes US owners make with French property

The following 7 errors come up consistently in our work with US clients who own French real estate. Each is avoidable with the right information upfront.

1. Assuming non-residency means no French property tax: Taxe foncière and taxe d'habitation on second homes apply to every owner, resident or not. There is no exemption from local property taxes based on living outside France.
2. Missing the Biens Immobiliers occupancy declaration: France requires an annual online declaration of each property's occupancy status. Skipping it can result in an incorrect taxe d'habitation assessment or a compliance notice from the DGFiP.
3. Thinking taxe d'habitation was abolished for everyone: The 2023 abolition applies only to primary residences. A property that is not the owner's main home remains fully taxable, and in 2025 alone, 1,628 communes added surcharges of up to 60% in housing-shortage zones.
4. Not reporting French rental income on the US return: The IRS taxes US citizens and green card holders on worldwide income. Rental income from a French property must be reported on Schedule E in USD, regardless of whether French tax was withheld. Review the IRS guidance on the Foreign Tax Credit to understand how French taxes paid can offset US tax on the same income.
5. Calculating the US capital gain in euros: The gain must be calculated in US dollars using cost basis and sale proceeds converted at the exchange rates applicable on each date. Converting only the final euro figure gives the wrong answer whenever exchange rates have moved since the purchase.
6. Forgetting FBAR for French bank accounts: Direct real estate is not an FBAR-reportable account – but a French bank account holding rent, mortgage reserves, or maintenance funds is. See FinCEN's FBAR guidance for the complete definition. If aggregate foreign account balances exceeded $10,000 at any point during the year, FBAR was due April 15, with an automatic extension to October 15.
7. French tax does not automatically cancel US tax: The Foreign Tax Credit must be claimed on Form 1116, and French CSG/CRDS may be creditable under current IRS guidance, but eligibility should be confirmed for the taxpayer’s facts. Not all French taxes qualify: social charges have historically been subject to treaty and credibility disputes. Confirm with a qualified tax professional whether the social charges paid in a given year support a credit on your US return before filing.

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Susan Turcotte

CPA

Susan Turcotte, a seasoned CPA with over 45 years of accounting experience, holds a Bachelor's in Accounting and a Master's in Taxation from Bryant College.

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