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Brace for Brexit 20: Tax hike for French property owners


UK resident landlords of French properties will pay more tax on rental income and gains after the end of the transition period on 31 December 2020.

22nd Dec 2020
Tax Writer Taxwriter Ltd
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Virginie Deflassieux, French Tax Director, BDO Ltd (Guernsey), spoke to Rebecca Cave about the French tax and social security charges which UK-resident landlords will have to pay when letting or selling property in France from 2021. 

RC: Why does the UK leaving the EU make a difference to the tax treatment of French properties held by UK residents?

VD: From 1 January 2021 British citizens won’t be shielded from certain tax discrimination in the French tax regime. Until that date the European Court of Justice has ruled against any tax practices or law contrary to EU regulations for EU citizens. As UK citizens are no longer EU citizens, those protections fall away at the end of the transition period.  

RC: How much extra tax will UK landlords have to pay

VD: The UK resident is primarily taxed in France on the profits from the French property, under the terms of the France-UK double taxation agreement (DTA). Also, under the DTA the UK landlord is entitled to a tax credit to set against their UK income tax in respect of the French tax charge, but not necessarily in respect of all the other social security and other charges payable.

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Replies (3)

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By Joe Soap
06th Jan 2021 13:02


“What’s more the entire amount, including the PSOL is now treated as tax and can be set-off as a tax credit against UK income tax on the French property income.”

“However, only tax charges equivalent 27.5% & 37.5% can be set against the UK income tax charged on that income, ……..”

Are these two statements from the article not contradictory?

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By Joe Soap
06th Jan 2021 14:28


Thanks (0)
By Montrose
12th Sep 2021 14:43

How does holding a second[EU} nationality impact on these changes for a UK resident national ?

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