Posted: 22 January 2010 at 5:31pm | IP Logged

Dear Phil,

I am not sure how you completed your tax returns, but it would appear that you have indicated to the French tax office that the 2461 Euros was profit and as such it has been taxed at 20%.

I can recommend a good accountant if you want to send me a message directly.

Davey

Posted: 22 January 2010 at 5:53pm | IP Logged

I have had my leaseback just one year and am due to complete the tax return soon. Will I be taxed on the income receievd minus the mortgage costs and minus any one-off kitting out costs (equipment) ?

What rate is the tax ?

Posted: 25 January 2010 at 5:33pm | IP Logged

Dear PP501,

The rate of incoem tax for a non resident is 20%.  Whether or not these items are taken off your income will depend on how your property has been registered and how you fill in the French tax forms.

Davey

Posted: 09 March 2010 at 9:01pm | IP Logged

To my understanding, it is possible to reduce taxable income (rent - interest - fonciere - accountant) by

1. writing off notaire/mortgage arrangement fees over first 5 years. Any negative taxable income can be carried to next year.

and

2. taking into consideration depreciation of furniture and building over 10 years.

Is this still correct?

I was given a spreadsheet some years ago  by an agent which gave an example of this but I imagine things have changed since.

BTW The example showed no tax was due for about 20 years!

Posted: 06 April 2010 at 10:25am | IP Logged

I am going to attempt to complete my own tax return this year based on the return that my accountant completed last year. Does anyone else complete their own tax returns or do I need to use an accountant? I basically refuse to spend more on getting someone to complete the form than the amount of tax that I have to pay!