If you own a property, this tax guide may help you. Let’s start with a basic assumption: renting a house is convenient . Once the apartment is furnished as you prefer and after finding the ideal tenant , all that remains is to proceed with the lease .
Don’t let tax compliance stop you from earning your apartment. By the way, you may be entitled to some concessions. What taxes do I have to pay? Find out how rental taxation works .
Registration of the contract
If you have already entered into the contract, the first step is to register . The law requires that the landlord, that is, the home owner, proceed to register the contract within 30 days . This is the time when the registration tax and stamp duty must be paid.
The term within which the owner must send notice to the tenant (and to the condominium administrator) of the registration of the contract is 60 days , attaching the receipt.
The registration tax
The registration tax amount changes according to the type of property being leased. With reference to properties, the tax is equal to 2% of the annual fee multiplied by the number of years. Consequently, it is calculated on the tax base .
In this regard, you could obtain a 30% reduction in the tax base, provided two conditions exist:
The lease contract entered into is at an agreed fee;
The property is located in one of the « High voltage residential municipalities » .
The minimum amount of registration tax for the first year cannot however be less than 67 euros. The initial sum paid by the tenant in the form of a deposit is exempt from the calculation.
In the event that the contract is concluded for several years (for example, 4 + 4 or 5 + 2), you can choose between two payment methods :
Pay the total amount when registering, benefiting from a discount;
Pay the registration tax every year for the reference year ( within 30 days from the expiry of the previous year) .