French Buy to Let Property Guide

3. Buy to Let Rents in France

There are controls on the maximum rental that can be charged, but as these limits are generally above local market rents they rarely pose a problem for a prospective investor. In Paris, Cote d'Azur and Geneva it is around €21m², whilst in the provinces it varies from €12m² to €15m².

A landlord who is prepared to let the property to a tenant within a maximum income threshold and at a maximum lower rent also benefits from a supplemental reduction in income tax of 2% for an additional six years, provided the income threshold and rental conditions continue to be met. This brings the total reduction to 37% on the price of the property purchased in 2009/10 and 32% for 2011/12.

The maximum annual income thresholds for tenants are generous, around €65K for a couple in Paris, and around €45K in the provinces.

The maximum level of the lower rent in such cases varies according to the location of the property. In Paris, Cote d'Azur and Geneva it is around €17 per m², whilst elsewhere it varies from around €10m² to €12m².

These rental levels remain quite generous, and do not require that you let the property to only those with low or modest incomes.

In return, you must undertake to let the property for a minimum of nine years. The first letting must take place within 1 to 3 years of completion, depending on the rental controls the landlord is prepared to accept on the letting.

The property must also be the main home of the tenant, and for properties let on a controlled rent, the occupant cannot be a member of your own household.

All types of new residential property are eligible under this scheme - newly built properties and off-plan developments, as well as newly renovated properties. New self build properties are also eligible. In all cases the dwelling will need to achieve minimum energy performance standards.

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