Leaving France with a property behind you is a decision that goes well beyond a simple wealth management question. Rental income taxation, capital gains on exit, social levies, IFI wealth tax: the rules applying to non-residents are specific, and mistakes can be expensive. This guide covers both scenarios — keeping and renting out, or selling before or after departure — with the tax rules in force as of Q2 2026.

The dilemma: keep or sell?

The decision hinges on four main variables, often intertwined.

Your return horizon. If you plan to come back to France within 3 to 5 years, keeping the property avoids finding yourself without a home, and re-acquisition costs (notaire fees, searching) are significant. If the move is permanent or very long-term, the capital tied up in the property could work harder elsewhere.

Available cash. Selling frees up capital that can be reinvested or simplifies financing a home abroad. Keeping the property without a tenant locks up dormant capital and generates ongoing costs (co-ownership charges, property tax, landlord insurance). A well-managed rental can, on the other hand, help fund your setup abroad.

Real rental yield. Gross yields in France typically run between 3% and 6% depending on the city, but the net yield for a non-resident is reduced by specific taxation (see below), remote management fees (7 to 10% of rent), and non-recoverable charges. Property in tight rental markets is easier to let but does not guarantee an attractive return after tax.

Ability to manage remotely. Managing a tenant from Bangkok or Lisbon without a property manager is not realistic for most people. A property management mandate is almost unavoidable, and it comes at a cost.

If you keep the property and rent it out

Rental income taxation for non-residents

Rental income from French property earned by a non-resident is taxable in France, regardless of your country of residence and any applicable tax treaties. The general rule for real estate is that income is taxed in the country where the property is located: France.

The minimum tax rate applicable to non-residents is 20% on the portion of net French-source income not exceeding an annual threshold, and 30% above it. In 2026, this threshold stands at €28,797 of net French-source income. This minimum rate applies even if your average rate under the progressive income tax scale would be lower — unless you can demonstrate that your average rate on your worldwide income would be below 20%, in which case that average rate applies instead.

Full details are available on impots.gouv.fr (non-residents).

Social levies: the EU/EEA/Swiss affiliate case

French social levies (CSG, CRDS, solidarity levy) apply to French-source rental income, including for non-residents. But the rules differ depending on your situation:

  • If you are affiliated to a social security scheme in an EU member state, EEA country, or Switzerland: you are exempt from CSG (9.2%) and CRDS (0.5%), but remain subject to the solidarity levy at a rate of 7.5%. This levy is not allocated to a social security scheme, which justifies its application.
  • In all other cases (residence outside the EU/EEA/Switzerland): total social levies amount to 17.2% (CSG 9.2% + CRDS 0.5% + solidarity levy 7.5%).

The reference documentation is on service-public.fr.

Tax filing and the right tax office

Non-residents declare their French rental income with the Service des impôts des particuliers non-résidents (SIPNR), based in Noisy-le-Grand. Filing is done via form 2042 (with or without the 2044 depending on the chosen regime), on impots.gouv.fr as for residents, by ticking the non-resident box.

Micro-foncier or actual-cost regime

As for residents, two regimes are available:

  • Micro-foncier: if your gross rental income does not exceed €15,000 per year, you can opt for the micro-foncier regime, which applies a flat allowance of 30%. Simple, but not always the most advantageous.
  • Actual-cost regime: you deduct real expenses (renovation work, mortgage interest, management fees, insurance, property tax, non-recoverable co-ownership charges). Mandatory above €15,000. Often more beneficial if you have an active mortgage or planned works.

Remote property management

A property management mandate entrusted to an estate agency or property manager is the standard solution. Fees range between 6 and 10% of rent including charges, with additional letting fees (roughly one month’s rent). These fees are deductible under the actual-cost regime.

Online property management platforms can reduce costs (3 to 5%), but require more direct involvement from you at a distance.

If you sell

Capital gains tax for non-residents

Capital gains realised by a non-resident fiscal upon selling French property are taxable in France, in application of tax treaties (principle of taxation in the country where the property is located).

The applicable rate is 19% (income tax), to which social levies are added. These total 17.2% for residents outside the EU/EEA/Switzerland, and 7.5% (solidarity levy only) for affiliates of an EU/EEA/Swiss social security scheme.

An additional surtax of 2 to 6% applies to net capital gains exceeding €50,000.

Taper relief for length of ownership

Taper relief applies identically for residents and non-residents:

  • For income tax (19%): 6% relief per year after the 5th year of ownership, then 4% for the 22nd year. Full exemption after 22 years.
  • For social levies: 1.65% relief per year between years 6 and 21, 1.60% for year 22, then 9% per year from year 23. Full exemption after 30 years.

Details are available on impots.gouv.fr (capital gains).

Principal residence exemption

The capital gains exemption for the sale of a principal residence remains accessible to non-residents in one specific case: the property must have been your principal residence up to the sale, or you must sell it within what the tax authorities consider a “normal” period after your departure, generally taken to be one year (which may be extended depending on circumstances).

In practice, if you rent out your former principal residence after leaving, it loses that status and the exemption no longer applies at the time of sale. This point is frequently overlooked.

There is also a specific exemption for non-residents who are EU/EEA nationals (or residents in a country that has an administrative assistance agreement with France), capped at €150,000 of net capital gain, subject to conditions. This is explained on notaires.fr.

The accredited tax representative

Above a certain threshold, the notaire must appoint a tax representative for non-residents outside the EU/EEA. This threshold is €150,000 for the sale price. Below this, and for EU/EEA residents, no tax representative has been required since 2018.

The accredited tax representative — a bank or institution approved by the tax authorities — guarantees payment of capital gains tax. Their fees are typically 0.3 to 0.5% of the sale price and should be negotiated in advance.

IFI wealth tax: non-residents are also concerned

The impôt sur la fortune immobilière (IFI) applies to individuals whose net taxable real estate assets exceed €1.3 million on 1 January of the tax year. Non-resident taxpayers are liable for IFI on their French real estate assets only (not their worldwide property).

If your French property is worth €1.4 million and you have an outstanding mortgage that is deductible, your tax base may fall below the threshold. IFI therefore does not affect the majority of expats, but it should not be overlooked if you own several properties or a high-value asset in France.

Tax treaties and real estate

Tax treaties concluded by France almost universally provide that income and gains from real property are taxable in the country where the property is located. For French property, France therefore retains the right to tax, whether you are resident in Portugal, Spain, Germany, or Singapore.

This does not mean you have nothing to declare in your country of residence: you will often need to declare these income and gains there as well, but your country of residence will generally grant a tax credit or exemption to avoid double taxation. The exact mechanism depends on the applicable treaty.

If you are moving to Portugal or Spain, see our guides moving to Portugal and moving to Spain for local specifics.

Comparison: keep and rent vs sell

Criterion Keep and rent out Sell
Liquidity None (capital tied up) Full (capital released)
Income taxation 20% or 30% + social levies (7.5% or 17.2%) 19% on capital gain + social levies
Management effort High (agency mandate recommended) One-off (notaire)
Return to France option Preserved Lost
Potential IFI Yes, if French assets exceed €1.3M No (after sale)
Ideal for Return plans, high rental yield, family property Long-term departure, need for cash, low-yield property

Pitfalls to avoid

Pitfall 1: forgetting social levies

Many expats calculate their tax exposure using only the income tax rate (20% or 30%). Social levies are added on top and can represent an additional 7.5% or 17.2%. On €10,000 of net rental income, the difference amounts to €750 to €1,720 depending on your situation.

Pitfall 2: assuming the principal residence exemption lasts long after departure

If you leave and rent out your former principal residence, the capital gains exemption for principal residence no longer applies at the time of a subsequent sale. The “normal” one-year window is short. A quick sale after departure, before any rental, preserves the exemption.

Pitfall 3: underestimating remote management costs

A management mandate represents 7 to 10% of rents, on top of refurbishment costs between tenants, potential disputes, and rental voids. The actual net yield is often 2 to 3 percentage points below the gross yield advertised.

Pitfall 4: not planning for the tax representative

If you sell a property worth more than €150,000 from a country outside the EU/EEA, the notaire must withhold capital gains tax and appoint a tax representative. The associated fees are added to notaire costs and should be budgeted in advance.

Frequently asked questions

Is French rental income taxed twice for non-residents?

In principle, no, thanks to tax treaties. France taxes the income at source, and your country of residence generally grants a tax credit or exemption to eliminate double taxation. Check the treaty applicable between France and your country of residence: the exact mechanism varies.

Can you deduct mortgage interest under the actual-cost regime as a non-resident?

Yes. The actual-cost income tax regime applies under the same conditions as for residents. Mortgage interest, management fees, property tax, insurance premiums, and maintenance works are deductible from net rental income. Rental deficits are carried forward under the usual rules.

Do you need to declare French property in your country of residence?

This depends on local legislation. In most countries, residents must declare their worldwide income. The French property and the income it generates will often need to appear in your local tax return, even if the effective taxation remains in France. Consult a tax adviser in your country of residence for the specifics.

What are the rules for short-term lets (Airbnb) managed from abroad?

Furnished tourist rental income (Airbnb-type) is classified under industrial and commercial profits (BIC), not rental income (revenus fonciers). A different tax regime applies: micro-BIC with a 30% or 50% allowance depending on the property’s classification, or the actual-cost regime. French filing remains mandatory. Certain registration obligations with the local authority may also apply depending on the city.

Whether to keep or sell a French property when moving abroad is not a purely financial question. It involves your life plans, your ability to manage remotely, and your tax strategy over several years. The rules described in this guide are those in force in Q2 2026: check the latest thresholds and rates on impots.gouv.fr and consult a notaire or tax specialist with non-resident expertise before making any decision.

For more on the tax side of your move, read our articles changing your tax residency, filing your taxes as an expat and expat tax comparison.

Find all our practical guides for settling abroad: living abroad.

The figures and conditions stated in this guide are valid as of Q2 2026. Tax law evolves: always verify current rates on impots.gouv.fr and service-public.fr before making any decision. This article is informational and does not constitute personalised tax or legal advice.