LATEST NEWS

 30 April 2019

Regime governing property traders: the Cour de Cassation challenges the possibility to avoid payments of registration fees for operations in the past that partially complied with an undertaking to resell

Read more ...
FUNDAMENTALS


RENTALS

ligne

gestion

Real estate taxation, investment assets: rentals

> Introduction
>VAT - CRL

> Profits tax
> Local taxation
> Tax audit


ACQUISITION/DISPOSAL

ligne

acquisitions

Tax aspects of acquisitions/disposals of real estate asset

Introduction
> Real estate asset
Real estate investment company
Leasing


DEVELOPMENT

ligne

Taxation of real estate asset, as a part of stock

> Introduction
Development operations

> Acquisition and resale
Profits tax

 


STRUCTURATION

ligne

Tax aspects of the legal methods oh holding investments

Introduction
Unregulated structures 

Regulated structures 


INDIVIDUALS

ligne

Taxation of the real estate assets of private individuals

> Introduction
> Rental income
Capital gains on real estate
Furnished rentals
Real property wealth tax
Gifts / Inheritances
Subdivision


INTERNATIONAL

ligne

Internatial investments: French tax aspects

Introduction
> Institutional investors / Companies
> Private individuals

TAX AUDIT
ligne

Tax audit


Introduction: real estate taxation of buildings used as investments

Published on .

Introduction: real estate taxation of buildings used as investments 

The subject matter here is the taxation of buildings used as investments in order to generate rents.

In fact, if a building is exploited as an asset by its owner, it is not subject to any particular taxation and is instead treated in the same way as other assets exploited by the enterprise. 

In this context, the taxation of rents can take several forms: 

Taxes applicable to rents as a form of turnover:

  • VAT, and

  • Levy on rental income (Contribution sur les Revenus Locatifs, CRL). 

Taxation of rental income:

  • this only deals with the situation of professional investors subject to Corporation Tax (CT), directly or via tax-transparent companies, SCI / SNC type, (for income from land received by individuals, see Individuals > Rental income )

  • the tax charge on the exercise of an activity and/or the ownership of real estate (the territorial economic levy (Contribution Economique Territoriale, CET)) including the levy based on company land (CFE), the levy based on campany value-added (CVAE), land tax, the office tax in the Ile-de-France, IDF, etc).

 

haut parleur1

focus

Tax charges related to the ownership of buildings are often passed on (rebilled) to the tenant and do not therefore generally represent a charge for the owner. However, this situation is changing due to developments in the rental market and/or the law. 

The Pinel law has defined tax charges that can be rebilled to the tenant (for instance, the CVAE cannit be passed on to the tenant. Nevertheless, the land tax and other taxes related to the latter can be rebilled to the tenant).

 The taxation of rents is summarised in the chart below: