If you rent out a UK property and live in France, you must declare that rental income on your French return every year — regardless of what you report in the UK. The declaration route, the tax treatment, and the social charges outcome differ depending on whether the property is let furnished or unfurnished.
Many UK expats in France still own property back in the UK and let it out for income. It's a common arrangement — and one that creates obligations in both countries simultaneously. The UK still has the right to tax UK rental income. The UK-France double tax treaty prevents genuine double taxation, but it does not remove the French declaration obligation.
This guide covers both main scenarios — unfurnished lets and furnished lets — including which regime applies, the exact forms to use, how social charges work, and the important difference in how the treaty credit operates for each type.
For a broader overview of how income from UK assets is treated in France, see our guide to UK Income and French Tax: Which Country Taxes What?
The Fundamental Point: Two Sets of Obligations
Before going into the mechanics, it's worth being clear about the framework.
Under Articles 6 and 24 of the UK-France double tax treaty, the UK has the right to tax income from UK property. France, as your country of residence, also has the right to tax your worldwide income — including UK rental income. The treaty resolves this by giving France taxing rights but requiring France to give a crédit d'impôt égal à l'impôt français — a tax credit equal to the French tax due on that income. The effect is that the French income tax liability is neutralised to zero via Box 8TK on Form 2042.
You still have French filing obligations — the income must be declared and the forms completed correctly. And as we will see, the social charges outcome differs between unfurnished and furnished lets.
You may also have UK obligations — a Self Assessment return if you are a non-resident landlord, or registration with HMRC's Non-Resident Landlord scheme. French and UK obligations run in parallel and neither replaces the other.
This article is part of the Tax Treaties & Your Income category, which covers how the UK-France treaty affects different types of income.
Part 1: Unfurnished UK Rental Income
Which Regime Applies
All unfurnished rental income in France — whether the property is in the UK or in France — is declared as Revenus Fonciers (property income). There are two regimes:
Micro-Foncier — a simplified regime applying a flat 30% allowance to your gross receipts. The remaining 70% is taxable.
The key eligibility condition is that you must own and actively let at least one unfurnished property in France. Without a French property, Micro-Foncier is not available to you regardless of income level.
If you do own French rental property, there is a second condition: total household gross unfurnished rental income (UK and French combined) must not exceed €15,000.
Both conditions must be met. Most UK expats with only UK rental property will not qualify — Régime Réel applies by default.
Régime Réel — you deduct actual expenses from gross receipts to arrive at a net profit or loss, calculated on Form 2044.
UK-only landlords: If all your rental property is in the UK and you own nothing in France, Micro-Foncier is not available. Régime Réel is your only option.
The 3-year lock-in: This applies only to landlords who could use Micro-Foncier but choose Régime Réel instead — i.e. those who own French rental property and have combined income under €15,000. If you elect Régime Réel in that situation, the election is irrevocable for 3 years. You cannot switch back to Micro-Foncier during that period unless your household situation changes.
UK-only landlords have no choice to make here — Régime Réel applies regardless.
Which is more beneficial? Micro-Foncier is simpler and works well when your actual expenses are low. Régime Réel is better when you have significant costs — mortgage interest, repairs, agent fees, insurance — that together exceed 30% of gross receipts. If you have a loss under Régime Réel, it can be offset against other property income or, up to a cap, against your global income.
One important note: If you have both UK and French unfurnished rental income, both must be declared under the same regime. You cannot use Micro-Foncier for the UK property and Régime Réel for the French one.
How to Declare It — Forms and Boxes
Step 1: Form 2047 — Section 4 (Revenus fonciers)
Enter the UK property details:
- Country: Royaume-Uni
- Address of the property
- Micro-Foncier: enter gross rent received
- Régime Réel: enter net profit from Form 2044
Step 2: Form 2047 — Section 6 (mandatory for UK property)
This is the section that triggers the treaty credit. Under Revenus encaissés hors de France ouvrant droit à un crédit d'impôt égal à l'impôt français:
- Country: Royaume-Uni
- Type of income: Revenus fonciers
- Micro-Foncier: enter gross rent. Régime Réel: enter net profit
- Carry the total to the summary line at the end of Section 6
For a full explanation of how Form 2047 works and which sections apply to which income types, see our dedicated guide.
Step 3: Form 2042 — Main Return
- Micro-Foncier: Box 4BE (gross receipts — 30% allowance applied automatically)
- Régime Réel: Box 4BA (net profit from Form 2044)
- UK source identifier — enter the same figure in Box 4BK (Micro-Foncier) or Box 4BL (Régime Réel). This identifies the UK-source portion eligible for the tax credit
If you have both UK and French unfurnished rental, add both together and enter a single combined total in Box 4BE or 4BA. Enter only the UK portion in Box 4BK or 4BL.
Step 4: Form 2042 — Box 8TK
Enter the total from Form 2047 Section 6. This is the treaty credit that neutralises French income tax AND social charges to zero on UK unfurnished rental income. This is a critical step — without Box 8TK, you will be taxed twice.
Form 2047 Section 6 and Box 8TK are the two steps most commonly missed on UK rental declarations. Taxpert's filing assistant produces a personalised guide which will include information about Box 8TK.
Social Charges on UK Unfurnished Rental
UK property: Social charges are neutralised to zero via the Box 8TK credit mechanism — Articles 6 and 24 of the treaty. No social charges are due on UK unfurnished rental income regardless of S1 status.
French property (if you also have it): Subject to full social charges in addition to income tax. S1 holders tick Box 8SH (D1) / 8SI (D2) to apply the reduced solidarity levy rate. Mixed S1 households must also enter the S1 holder's net share in Box 8RF. See our guide on the S1 certificate for more detail on who qualifies and what it covers.
See the social charges by income type on the Taxpert reference data page →
Part 2: Furnished UK Rental Income
Furnished rental in France operates under a completely different framework from unfurnished rental. The income is classified as Bénéfices Industriels et Commerciaux (BIC) — commercial income — rather than property income. The forms, boxes, and social charges treatment are all different.
Professional (LMP) or Non-Professional (LMNP)?
The first decision is whether your furnished rental activity is classified as professional (Loueur en Meublé Professionnel, LMP) or non-professional (Loueur en Meublé Non-Professionnel, LMNP). Both conditions below must be met to qualify as LMP:
- Annual gross furnished rental receipts (UK and French combined) exceed €23,000, AND
- Rental receipts also exceed all other professional income in the household
If either condition is not met: LMNP.
Most UK expats with a single furnished UK rental property will be LMNP. LMP status has significantly different tax and social security implications and is outside the scope of this article.
Important: Exceeding €23,000 alone does not make you LMP — both conditions must be met. However, exceeding €23,000 does trigger a social security contribution requirement regardless of LMP/LMNP status. If you are near this threshold, seek advice before filing.
Micro-BIC or Régime Réel?
Micro-BIC applies a flat-rate allowance to gross receipts:
- Standard furnished let (including Airbnb-type unclassified lets): 30% allowance — ceiling €15,000 gross receipts
- Classified gîte, tourist let, or chambres d'hôtes: 50% allowance — ceiling €77,700 gross receipts
Note: these are the 2026 figures following the changes introduced for 2025 income. The ceilings and allowances for unclassified lets were significantly reduced from the previous year.
Régime Réel — deduct actual expenses and depreciation, calculated on Form 2031. No lock-in — you can switch between Micro-BIC and Régime Réel each year.
UK property Micro-BIC — important difference: For French furnished rental, you enter gross receipts and the tax office applies the allowance automatically. For UK furnished rental under Micro-BIC, you must manually subtract the allowance before entering the figure. Enter the taxable profit (gross receipts minus allowance), not the gross figure.
See the rental allowances on the Taxpert reference data page →
How to Declare It — Forms and Boxes
Step 1: Form 2042 C PRO — Supplementary Return
Under Revenus des locations meublées non professionnelles (LMNP):
- Micro-BIC (standard let): enter taxable profit after manually subtracting allowance (UK property)
- Micro-BIC (classified gîte): enter taxable profit after manually subtracting allowance (UK property)
- Régime Réel: enter net profit from Form 2031
For LMNP UK property, report the income in the foreign source sub-section to prevent monthly PAS (withholding) instalments being triggered incorrectly.
If you have both UK and French furnished rental, add the taxable profit from both together and enter a single combined total.
Step 2: Form 2047 — BIC Section
Under Revenus des professions non salariées imposables en France — Bénéfices industriels et commerciaux (BIC):
- Enter the net taxable profit (after allowance or actual expenses)
- This identifies the UK as the BIC income source
Step 3: Form 2047 — Section 6 (mandatory for UK property)
Under Revenus imposables ouvrant droit à un crédit d'impôt égal à l'impôt français:
- Enter the same net taxable profit
- Carry the total to the summary line at the end of Section 6
Step 4: Form 2042 — Box 8TK
Enter the total from Form 2047 Section 6. For UK furnished rental, Box 8TK neutralises income tax only — unlike unfurnished rental where it neutralises both income tax and social charges. Social charges still apply on UK furnished rental income.
Social Charges on UK Furnished Rental
This is the key difference from unfurnished rental:
UK furnished rental: The Box 8TK credit neutralises income tax only. Social charges still apply. This applies regardless of S1 status.
S1 holders: Tick Box 8SH (D1) / 8SI (D2) to apply the reduced solidarity levy rate instead of full social charges. This applies to LMNP furnished rental — not to LMP (which uses professional SSI contributions instead). See our guide on the S1 certificate for full details on who qualifies.
Common Mistakes
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Not declaring UK rental income in France because you're already declaring it in the UK. Both declarations are required. The treaty prevents double taxation but does not remove the French filing obligation. Income declared only in the UK and not in France is an undeclared liability in France.
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Thinking the Box 8TK credit means you pay nothing. The credit neutralises the French income tax. But you must still complete the declaration, use the correct forms, and — for furnished rental — account for social charges separately.
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UK-only unfurnished landlords trying to use Micro-Foncier. Micro-Foncier requires owning and letting a French property in addition to the UK one. If all your rental property is in the UK, Régime Réel is mandatory.
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Entering gross receipts for UK furnished rental under Micro-BIC. For UK property, you must manually subtract the allowance and enter the taxable profit. For French furnished property, the tax office does this automatically. Entering gross receipts for a UK property under Micro-BIC overstates your taxable income.
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Missing Form 2047 Section 6. This section is mandatory for UK rental income and is what triggers the Box 8TK credit. Without it, the credit cannot be applied and you will overpay French tax.
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Assuming social charges on UK furnished rental are neutralised by Box 8TK. They are not. Box 8TK neutralises income tax only for furnished rental. Social charges still apply — this is different from unfurnished rental where 8TK neutralises both.
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Electing Régime Réel for unfurnished rental while below €15,000 without understanding the commitment. This is a 3-year irrevocable election. If your actual expenses don't consistently exceed 30% of gross receipts, Micro-Foncier may be the better choice — and you cannot switch back for 3 years once you've elected Régime Réel below the threshold.
Frequently Asked Questions
I declare my UK rental income on a UK Self Assessment return. Do I still need to declare it in France?
Yes. Both obligations run in parallel. If you are a French resident with UK rental income, you must declare it in France as part of your worldwide income declaration, and you may have a continuing UK reporting obligation as a non-resident landlord. The Box 8TK credit in France ensures you are not doubly taxed, but both returns are required.
My UK rental income is small — under £5,000 a year. Does it still need to be declared in France?
Yes. There is no de minimis exemption for foreign rental income in France. All rental income, however small, must be declared.
My UK property is managed by a letting agent who deducts their fees. Do I declare the gross rent or the net amount I receive?
For Micro-Foncier, you declare the gross rent before agent fees — the 30% allowance covers all expenses including agent fees. For Régime Réel, you declare gross receipts on Form 2044 and deduct actual expenses including agent fees as an allowable cost.
Can I offset a loss on my UK rental property against my French income?
Under Régime Réel for unfurnished rental, a loss can be offset against other property income (Box 4BB) or against global income up to the applicable cap (Box 4BC). Unused deficits can be carried forward using Box 4BD. Under Micro-Foncier, losses cannot be created or carried forward. For furnished rental, LMNP losses are handled differently — they can be carried forward against future furnished rental income but generally cannot offset other income types.
I let my UK property furnished as a holiday let. Does the 2026 Micro-BIC change affect me?
Yes. From 2025 income (declared in 2026), unclassified holiday lets — including most Airbnb-type lets — have a reduced Micro-BIC ceiling of €15,000 and a 30% allowance (down from the previous 50%). If your gross receipts exceeded €15,000 in 2025, you cannot use Micro-BIC for that income and must use Régime Réel. If you have a star-rated classified property, the ceiling remains at €77,700 with a 50% allowance.
Do I need to declare the UK rental property as a foreign account on Form 3916?
No. Form 3916 is for foreign financial accounts (bank accounts, investment accounts). A UK rental property is a real asset, not a financial account, and does not require Form 3916 declaration. However, any UK bank account into which your rental income is paid does need to be declared on Form 3916 if it is held in a UK bank.