Property Taxes in France: What Investors Need to Know

French property taxation is structured but not opaque. Understanding the main components allows investors to model net returns accurately.

Acquisition costs (frais de notaire) typically represent between 2 and 8 percent depending on the asset. Annual property taxes (taxe foncière) vary by commune and asset type.

Rental income can be taxed under several regimes — micro-foncier, régime réel, LMNP, LMP — each with distinct depreciation and deduction rules. The right choice can materially change after-tax cash flow.

Non-resident investors should assess exposure to French wealth tax on real estate (IFI) and to double-taxation treaties in their home jurisdiction. Structuring should be settled before signing, not after.