Taxes for non-resident French property owners: 2026 guide

The annual local taxes you’ll pay, the wealth tax (IFI) thresholds, the capital gains regime on sale, and the US and UK double-tax considerations.

Updated May 2026.

The short answer

As a non-resident owner of a French property, you’ll pay annual taxe foncière (property tax) in every year of ownership and annual taxe d’habitation on second homes (despite the headline that taxe d’habitation was “abolished” in 2023, the second-home version remains). If your French property assets exceed €1.3 million, Impôt sur la Fortune Immobilière (IFI) applies, replacing the older general wealth tax. On sale, capital gains are taxed at 19% plus social charges (18.6% as of January 2026, up from 17.2%), with holding-period allowances that reduce both. US citizens face additional reporting on the US side; UK citizens face Brexit-era complications around social charge applicability. The total annual tax burden on a typical €500,000 second home runs €2,500 to €5,000 per year before any rental income.

This page covers the four main French tax exposures, the cross-border considerations for US and UK buyers, and the practical filings you’ll need to handle.

Taxe foncière: the property tax

Taxe foncière is the main annual property tax in France. It’s owed by whoever owns the property on 1 January of each tax year, regardless of residency status.

How it’s calculated:

• The valeur locative cadastrale (a notional rental value set by the tax authority) is the base.
• The local tax rates set by the commune, the intercommunalité, and the department are applied to that base.
• Adjustments and exemptions reduce the final amount.

Working amounts in 2026:

• A modest village house in rural Languedoc: €600 to €1,200 per year.
• A 150m² house in a Pays d’Uzès village: €1,200 to €2,000 per year.
• A 200m² mas with land near Uzès or in the Lubéron: €2,000 to €3,500 per year.
• A €1m+ property on the Côte d’Azur: €4,000 to €8,000 per year.
• A Paris apartment: €1,500 to €4,000 per year depending on arrondissement.

The bill arrives in October each year, with payment due by mid-October (or mid-November for online payment). It can be paid by direct debit, by online transfer, or by international bank transfer for non-residents.

Since 2023, taxe foncière rates have risen meaningfully in many communes (some by 10 to 25%) as part of national fiscal adjustments. Expect upward drift through the late 2020s.

Taxe d’habitation: the second-home tax

The headline narrative is that taxe d’habitation was abolished. The reality is more nuanced. Primary residences no longer pay taxe d’habitation as of 2023. Second homes still do, in fact at increased rates in many tourist-area communes.

How it works in 2026:

• Second-home owners pay taxe d’habitation on every secondary residence, owed by whoever has use of the property on 1 January.
• Rates are similar to taxe foncière (often 60 to 100% of the taxe foncière amount).
• Communes designated as zones tendues (housing-pressure areas) can add a majoration of up to 60% on the taxe d’habitation on second homes. Most South-of-France tourist communes have done so, including Paris, Côte d’Azur municipalities, and many Provençal villages.

Working amounts: roughly equivalent to the taxe foncière amount, sometimes higher in zones tendues with the majoration.

The bill arrives in November, with payment due by mid-December.

The IFI (impôt sur la fortune immobilière): wealth tax on real estate

Since 2018, France’s wealth tax applies only to real-estate assets, replacing the older Impôt de Solidarité sur la Fortune (ISF) which applied to all assets. The new tax is the Impôt sur la Fortune Immobilière (IFI).

The structure in 2026:

• IFI applies if your worldwide net real-estate assets exceed €1.3 million on 1 January.
• For non-residents, IFI applies only to real estate located in France.
• The threshold is per household (a married couple is taxed jointly).
• Mortgages on the relevant properties are deductible from the gross asset value.

Tax brackets for IFI:

Bracket	Rate
Below €800,000	0%
€800,000 to €1.3M	0.5% (only kicks in once total exceeds €1.3M threshold)
€1.3M to €2.57M	0.7%
€2.57M to €5M	1.0%
€5M to €10M	1.25%
Above €10M	1.5%

A working example: a non-resident owns a €2.5M French villa with a €1M mortgage. Net assessable value: €1.5M. IFI calculation kicks in (above the €1.3M threshold). Tax: roughly €5,000 per year.

The IFI is filed annually with the French tax return (form 2042-IFI) by mid-May, with payment due in September. Non-residents file as part of their non-resident tax return.

Capital gains tax on sale

When you sell, capital gains tax applies on the difference between the sale price and the original purchase price (adjusted for frais d’acquisition and certain renovation costs).

The 2026 structure:

• Income tax on the gain: 19%.
• Social charges (prélèvements sociaux): 18.6% as of January 2026 (up from 17.2%; the CSG rate component rose from 9.2% to 10.6%).
• Combined: 37.6% on the gain at sale, before holding-period allowances.

Allowances based on holding period (per the 2026 Loi de Finances):

• Income tax (19% portion): under the 2026 schedule, exempt after 17 years of ownership (down from 22 years previously); reduced gradually before that.
• Social charges (18.6% portion): exempt after 30 years of ownership (unchanged); reduced gradually.
• Practical implication: holding for 30+ years means zero French capital gains tax. Holding for 17 years zeroes the income-tax portion but leaves the social-charges portion until year 30.

For high-value gains (above €50,000 in profit), an additional surtax of 2 to 6% applies on the gain, rising with the gain size. This rarely affects modest second-home sales but matters for prime-market disposals.

Renovation costs that qualify for the cost-base adjustment: documented works completed by RGE-certified contractors, with invoices retained. DIY renovation does not qualify.

US citizen specifics

US citizens face two separate tax obligations:

French side

You pay the same taxe foncière, taxe d’habitation, IFI (if applicable), and capital gains as any other non-resident.

US side

US citizens are taxed on worldwide income regardless of residence. French rental income, French capital gains on sale, and French wealth (if reportable) all flow into the US return:

• Rental income: report on Schedule E, with treaty relief preventing double taxation. Generally, French tax paid is creditable against US tax owed on the same income.
• Capital gains on sale: report as a long-term capital gain; the French 36.2% tax credits against US tax owed.
• FBAR filing: required if any foreign bank account total exceeds $10,000 in a year.
• Form 8938 filing: required at higher thresholds (varies by filing status).
• PFIC concerns: certain French investment vehicles (especially SCI structures with rental income) may trigger PFIC reporting, which is complex and expensive.

The treaty between the US and France prevents most double taxation, but the reporting overhead is real. US citizens should work with a dual-qualified accountant before any complex structuring.

UK citizen specifics

Post-Brexit, UK citizens face a few specific complications:

Social charges (prélèvements sociaux)

Before Brexit, UK citizens covered by UK National Insurance were exempt from the French social charges component on rental income and capital gains. Post-Brexit, the exemption was removed for most UK citizens (UK is now a third country for EU social-security coordination purposes), although bilateral discussions continued through 2024-2025.

As of 2026, UK citizens generally pay the full social charges alongside the 19% income tax on French rental income and capital gains. The social charges rate rose from 17.2% to 18.6% on 1 January 2026 with the CSG increase. Some specific cases (UK pensioners with S1 form coverage) maintain partial exemption, but the default has shifted.

Inheritance tax

The UK and France have separate inheritance tax regimes. A UK domiciled-for-tax person owning French property may face French droits de succession on the property when they die, potentially in addition to UK inheritance tax. The double-tax treaty provides credit for tax paid in one jurisdiction against the other, but the rules are complex and the resulting liability often higher than for an equivalent UK-only estate.

Healthcare during stays

Owning the property doesn’t grant healthcare access. UK pensioners with the S1 form continue to access French healthcare during stays. UK citizens without S1 coverage need private health insurance for any extended stay.

Northern European specifics

EU citizens (Belgian, Dutch, German, Scandinavian) face the simplest tax picture. The EU social-security coordination rules apply, so social charges work cleanly with home-country systems. Bilateral tax treaties with France handle most double-taxation issues automatically. The main compliance requirement is filing the French non-resident return annually if you have rental income, capital gains, or IFI exposure.

Filing the French non-resident return

If you have any French-source income (rental, capital gains) or French IFI exposure, you must file the non-resident return:

• Form 2042-NR (for non-residents) plus relevant supporting forms.
• Filing deadline typically mid-May for the previous calendar year.
• File online via impots.gouv.fr (you’ll need a numéro fiscal and access credentials, which the tax authority issues to non-resident property owners on request).

For pure ownership without rental income and below the IFI threshold, no annual filing is required beyond paying the taxe foncière and taxe d’habitation bills.

A worked example

A British couple owns a 180m² house in the Pays d’Uzès, purchased in 2018 for €450,000 with 7.5% frais d’acquisition (cost basis €483,750). They use it as a second home, no rental. Current market value €620,000 in 2026.

Annual taxes:

• Taxe foncière: €1,800.
• Taxe d’habitation (with majoration in zone tendue): €2,200.
• IFI: €0 (their French real-estate assets are under the €1.3M threshold).
• Total annual French tax burden: ~€4,000.

If they sell in 2026 at €620,000:

• Gross gain: €620,000 − €483,750 = €136,250.
• Holding period: 8 years; partial reduction on income tax portion (~6% reduction), no reduction on social charges yet.
• Income tax: 19% × €136,250 × (1 − 0.06) = ~€24,300.
• Social charges: 18.6% × €136,250 = €25,343.
• Total French capital gains tax: ~€49,600.
• Net of French tax: €620,000 − €49,600 = €570,400.

If the same couple held for 30+ years instead, both taxes phase down to zero and the entire gain is theirs.

What this means for you

If you’re at the offer stage:

• Budget €2,500 to €5,000 per year in annual French taxes for a typical second home, more for high-value properties or zones tendues.
• Confirm IFI exposure if your French + total worldwide real-estate assets are above €1.3M.
• For US buyers, consult a dual-qualified accountant before any structural decisions (SCI, mortgage structure, residency planning).
• For UK buyers, accept that the post-Brexit social-charges position has changed; budget the full 18.6% (the rate effective January 2026) on any future capital gain.

If you’re already an owner:

• File the non-resident return if you have rental income or IFI exposure.
• Keep all renovation invoices from RGE contractors; they reduce capital gains tax on eventual sale.
• Track holding period; tax allowances kick in meaningfully after year 5 and become substantial after year 22.

The Adresse.ai report doesn’t compute your individual tax position (that requires personal financial information we don’t ask for and don’t want), but it does flag the taxe d’habitation majoration status for the commune, which is a meaningful signal of how the local tax burden compares.

Questions

Do I need a French accountant or can I file myself?

For pure ownership without rental income, you don’t need an accountant; the taxe foncière and taxe d’habitation bills arrive automatically. For rental income, IFI, or capital gains on sale, an accountant familiar with non-resident filings is worth the modest cost (typically €300 to €800 per year). For US citizens specifically, a dual-qualified US-French CPA is strongly recommended.

What’s a numéro fiscal and how do I get one?

A numéro fiscal is your French tax identification number. Non-resident property owners can request one from the Service des Impôts des Particuliers Non-Résidents (SIPNR). Required for filing online and for accessing your tax records.

Is rental income from my French property taxable in France?

Yes. Rental income from French property is taxable in France for non-residents, at standard income tax rates (with a minimum 20% rate for non-residents) plus social charges (18.6% as of January 2026). Some expenses are deductible. Furnished rentals (the meublé regime) have a different and often more favourable structure; talk to an accountant.

Do I need to declare French property to my home tax authority?

Yes, in most cases. Both the UK and the US require disclosure of foreign real estate holdings above thresholds. The treaty network handles most double-tax issues, but the disclosure obligation is separate from the tax obligation.

What about inheritance?

French droits de succession apply to French real estate regardless of the owner’s nationality. The amount depends on the relationship between deceased and heir; for direct descendants the rates are lower than for distant relatives or non-relatives. Cross-border estates are complex; a notaire familiar with international estates is essential.

Can I gift the property to my children to reduce tax?

Yes, with restrictions. French donation rules allow tax-efficient lifetime gifts up to certain thresholds, replenishing every 15 years. The mechanics work for non-residents too. This is a complex area where structural advice from a notaire pays off.

What if rates change?

French tax rates change periodically, with the IFI brackets occasionally adjusted, the social charges sometimes shifting (the post-Brexit treatment of UK citizens is one example), and local taxe foncière rates moving annually. The numbers on this page are accurate as of May 2026; verify current rates before making decisions.

Try it on your listing

Adresse.ai’s report includes the local taxe foncière and taxe d’habitation approximations for the commune, alongside the comparable analysis.

Run an estimate →

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See also:

• Buying property in France as a foreigner
• Notaire fees in France: 2026 calculator and guide
• Mortgage for foreigners (FATCA and Brexit)
• How Adresse.ai works (full methodology)

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Sources for this page: Service-Public.fr: French tax authority guidance, impots.gouv.fr: official French tax portal, TaxesForExpats: Americans buying property in France, Connexion France: post-Brexit French tax changes, Notaires de France: inheritance and capital gains.