Where do I declare rent income?

As UK nationals who are tax resident in France, in which country should we declare and pay tax on rental income from a property outside the EU paid by the tenants into our UK bank account? P.H.

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Taxation is always applied first in the country in which the property is situated, and then in the country of fiscal residency.

So you would need to declare the rental income to the tax authorities of the country in which the property is situated, if the country does in fact charge income tax.

You would also have to make a declaration in your French income tax returns (though in most cases there are treaties in place which mean you are not taxed again on it – however France may take account of it, possibly increasing your tax rates on other revenue); Exactly how to do this depends on the type of rental/letting involved.

Reader's query answered by Hugh MacDonald

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