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Old 15.08.2017, 12:20
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French Rental Property Tax

Hey all,

We are going halves with a friend from UK on a ski apartment in France, we plan to use it and also rent it out. Expected rental income for us is around 7-8k Euro before deductions for costs/mortgage etc.

From what I can see, no wealth tax would apply as we are far below the 1.3m limit, but income tax would. Anyone have recent experience of this? Do you know how it works/what we are likely to pay?

The property is furnished and as above will generate for our 50% 7-8k Euro per annum best case, all of which would go towards the mortgage and we would pay an additional 2k in general property taxes and service charges. We live and pay tax in Switzerland.

Thanks!
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Old 15.08.2017, 20:28
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Re: French Rental Property Tax

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...From what I can see, no wealth tax would apply as we are far below the 1.3m limit, but income tax would. Anyone have recent experience of this? Do you know how it works/what we are likely to pay?...
I'm not a tax expert but from what I can tell, the Swiss wealth tax applies in a few cantons starting at 100k of wealth and in all cantons at 500k of wealth, to some degree. That's worldwide wealth - all your income and assets across the globe.

This article is a bit old (numbers are from 2013), but you can scroll down in this article to find your canton and percent:

https://www.expatica.com/ch/finance/...nd_101589.html
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Old 15.08.2017, 21:09
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Re: French Rental Property Tax

You're not creating any extra wealth. In fact with a mortgage you have something you can deduct...
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Old 15.08.2017, 22:50
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Re: French Rental Property Tax

As a property owner in France, you will be liable for French tax on property rentals in France...

This will be more than your Swiss liability.

General rule - property income is always taxed in country the property is situated.

Regards


Ian

(I own a holiday property in France. And UK rental property)
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Old 16.08.2017, 12:04
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Re: French Rental Property Tax

Thanks all. From what I can see, we would def pay income tax, the bit i'm not clear on is how much and does Swiss income get factored in..??

Anyone have any own examples with what they do?
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Old 16.08.2017, 12:08
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Re: French Rental Property Tax

You will have two local taxes to pay assume about 1k on a studio flat in a ski resort. TV license is on top if you have a TV. Further taxes & social costs on profit plus CGT/Social costs on a sale in the first 27 years. Expect an additional 3k of service charges one off every 10 years in addition to HUGE yearly charges.
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