If since January 2019 income tax has been deducted at source by a “third-party payer”, in other words by your employer, your pension fund or the social organizations with regard to allowances (sickness, unemployment, etc.), the taxation of your rental income obeys a special system: it is the tax authorities who directly debit a deposit (each month or each quarter) from your bank account, therefore as and when your rents are collected. Explanations of the mechanism.
The tax authorities are based on the last tax return you completed. The tax authorities determine the levy rate – including social taxes at 17.2% – applicable to the rents collected based on your last global tax return, without taking into account the tax reductions and credits you may benefit from.
This rate is then likely to change every year (in September), depending on your successive tax returns, which will also allow the tax authorities to calculate the final tax for the previous year, taking into account the amounts declared, the any tax benefits obtained and changes in your family situation (marriage, death, children, etc.). Depending on the result of the operation, during the month of September each year, the tax authorities will claim additional taxes from you or reimburse you for the overpayment.
Rental investment in the old
The punctures are operated monthly or quarterly, according to your preferences. The schedule for tax deductions follows the following rule: the rents declared in 2022 serve as the basis for calculating the installments due from September 1, 2022 to August 31, 2023, the rents declared in the spring of 2023 then taking over for the amount installments to be paid between September 1, 2023 and August 31, 2024. And so on each year.
Note that these installments are normally debited on the 15th of each month, but it is possible to opt for a quarterly withdrawal via your private space on the administration site (Impots.gouv.fr), in which case the deductions will fall on February 15, the May 15, August 15, then November 15 each year.
To note : if you stop renting your property, you can stop the direct debits (allow two months) on simple request. And in the event of a drop in rent (unpaid, etc.), you can obtain a reduction in levies provided that the annual tax resulting from this new situation is 10% lower than that originally planned.
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To avoid a large regularization, ask for an advance payment. Are you renting a home for the first time in 2022? Logically, the payment of installments will not begin in this case until September 2023, when the tax services will have become aware of the collection of these rents. I
However, there is a way – still via the tax website – to ask to be deducted in advance, in order to avoid too large a regularization in 2023. Last precision, if your charges prove to be higher than the rents collected during the year , in other words if you have noticed a land deficit, no levy will be made.
Rental housing: opt for the real regime
For a new purchase, you will receive a 60% advance from January 15. If you have obtained tax reductions by investing in real estate, the rule is that the tax authorities regularize your situation (therefore pay you back your due) in September, in view of the elements indicated in your tax return. With regard to “new” investments (pinel, Censi-Bouvard, etc.), a system of installments has however been introduced in order to reduce the cash flow effort of investors: on January 15 of each year, they receive an advance equal to 60% of the tax benefit, the balance being paid the following summer. All within the legal limit of tax loopholes.
Rental real estate: the advantages of the land deficit
The rule of overall capping of tax loopholes
(1) Ceiling applicable per tax household. (2) These transactions are subject to specific rules, but are not included in the calculation of the cap on tax loopholes. (3) Replaces the “Affordable rent” system since January 1, 2022.
The amount of tax benefits granted for investments made in stone (Pinel, Denormandie, Censi-Bouvard, etc.) is subject to an overall ceiling, known as “tax niches”, set by law at 10,000 euros per year and per tax household. Some real estate investments, however, escape this rule (housing purchased under the Malraux law, furnished rented dwellings, etc.), others benefit from an increased ceiling of 18,000 euros (new rental housing located overseas).
In the event of a drop in rent, the deposit may be adjusted
The big drawback of the system put in place is that it does not adapt in real time to variations in income. The installments will therefore be taken even if the amount of the rents decreases during the year, due tounpaid for example. The only parade will then be to warn the tax authorities of the new situation, so that it reduces its levies, but it will only agree to do so if the resulting annual tax is 10% lower than that originally planned. . On the other hand, if you stop renting your property, you can completely stop the tax punctures (allow two months of delay), on simple request made to your tax office or via the usual site.
>> Our complete investor's guide. Why invest in real estate? With what tax advantages at stake? How to get the best return from your rental(s)?