I’m moving to Paris, and i’ll renting out my property in the UK while in France I’ll be working for a French company, paid in France, and paying tax within France.
My only income in the UK will be the rent, and I understand there will be no tax as it’s under the threshold - I also understand that I need to declare this income in France.
What’s really confusing me is this: Do I get taxed in France on this rental income in the UK, if I do - how would I go about calculating it?
If you are under the UK threshold then unlikely that you will need to pay and UK tax. However if over £1000 then you should register for self assessment and declare the amount. There are clear instructions for foreign landlords about things like allowable expenses so not that difficult if you rent direct or there’s the non resident landlord scheme if you use an agent.
You then declare this income in France (having adjusted for the different tax years) with your annual tax return here. If this income takes you into a higher tax band then you will pay extra tax. But otherwise it is unlikely. There are slightly different allowances you can deduct from the rent in France to UK, but makes little difference.
It sounds more complicated than it is. I think I spend 20 minutes a year on it.
There is an important nuance here, in addition to the helpful advice from others on this thread. You are not directly taxed on your UK rental profits in France, under the UK/France tax treaty. Instead France takes the rental profits (as calculated according to French methods) and adds it to your other taxable income in France/elsewhere eg your salary, to determine the rate of tax you will pay on your salary (and any other taxable worldwide income you may have as a French resident). In other words the rental profits can bump up the rate of French tax you pay on your other income but you do not actually pay/‘suffer’ French tax on the rental income. France also grants you a tax credit equal to the tax due in France to avoid any double taxation (even if you haven’t paid any tax on it in the UK).