French tax authorities are stepping up efforts to ensure that non-resident property owners, including many Moroccans living abroad (MRE), properly declare and pay taxes on rental income from properties in France. According to recent reports, the tax administration is using data cross-referencing and automated checks to identify undeclared rental income.
Under French law, any person who owns a property in France and rents it out is subject to French income tax on that rental income, regardless of their country of residence. Non-residents must file annual tax returns (form 2042) and may also be liable for social charges (prélèvements sociaux) at a rate of 17.2% on rental income, unless exempt under a tax treaty.
The French tax authority (Direction Générale des Finances Publiques, DGFiP) has access to databases from notaries, banks, and utility companies to detect properties that are rented out but not declared. In 2025, the DGFiP reported a significant increase in audits targeting non-resident landlords, with penalties for late filing or underpayment reaching up to 40% of the tax due.
For MRE, the France-Morocco double tax treaty (convention fiscale) provides that rental income from French properties is taxable in France, but the tax paid in France can be credited against Moroccan tax on the same income. However, many owners fail to declare, either due to ignorance or deliberate omission, leading to back taxes and fines.
Tax experts advise non-resident owners to regularize their situation voluntarily through the French tax authority's online platform or by contacting a specialized accountant. The DGFiP offers a 'regularization without penalty' procedure for those who come forward before being contacted for an audit.
