Is it ok to have rental income in France if here on a retirement visa?
People on the most common for of ‘retirement’ visa must not work. Property incomes are complex – we look at some of the issues
Reader Question: Can we receive income from a property, such as a gîte, that we own in France while here on a retirement visa (we have to pledge not to work with this)?
To answer this question, there are several things we must look at in further detail.
The first is the exact wording of the retirement visa you are staying in France under.
We then need to consider the type of renting or letting you are considering doing and the type of property concerned.
What is ‘professional activity’?
Starting by looking at the visa, if you are a retiree you will most likely be coming to France on a long-term ‘visitor’ visa.
A key part of the official requirements of this is that you must not participate in any professional activity or work in France.
The key term here is ‘professional activity’ – not all forms of income from property are deemed to be ‘professional’ or related to work.
Obtaining money from property you own (in France or abroad) is one area where people on visitor visas can potentially receive money without falling foul of the rule against work, but it depends on the nature of the renting/letting and of the property.
Unfurnished rental
Renting out property unfurnished is seen as a form of investment income called revenus fonciers and this is not likely to pose a problem.
If you have income up to €15,000/year this is usually declared gross in a simplified system called le micro foncier which entitles you to a fixed 30% abatement. Otherwise it is declared au réel, claiming actual expense deductions.
Furnished letting
Money from furnished letting is typically declared under a system called le micro-Bic and is in most cases will be seen as a form of investment income, despite the fact the term Bic means ‘industrial and commercial profits’.
You will not normally have to register a full business and pay business social charges, all of which are signs of ‘running a business’. You can typically just declare the income in your personal annual income tax return in France. Read More…
