Paris real estate taxes for US owners: FBAR, FATCA, IRS

French taxes you pay every year

Taxe foncière (property tax)

Paid annually by the owner to the French state, regardless of whether the property is your primary residence, second home, or rental.

In Paris, taxe foncière typically ranges from €15 to €25 per square meter per year for residential apartments in central arrondissements. On a 100 sqm apartment, expect €1,500 to €2,500 per year.

The bill arrives in autumn (September-October) and is due by mid-October. Payment can be set up by direct debit from your French bank account.

Taxe d'habitation sur les résidences secondaires

The general taxe d'habitation on primary residences was eliminated in 2023. However, second homes remain subject to a separate occupancy tax, and Paris specifically applies a 60% surcharge on second-home taxe d'habitation as of 2026 to discourage non-occupied apartments.

For an American owner whose Paris apartment is a second home or pied-à-terre, expect taxe d'habitation in the range of €1,500 to €5,000 per year depending on the arrondissement and the apartment's rental value (valeur locative cadastrale).

If you rent the property to a long-term tenant who declares it as their primary residence, taxe d'habitation is paid by the tenant, not the owner.

Impôt sur la fortune immobilière (IFI)

France's wealth tax on real estate. Applies to French residents on their worldwide real estate, and to non-residents on their French real estate only.

• Threshold: taxable net real estate value above €1.3 million triggers IFI for non-residents.
• Rates: progressive from 0.5% on the slice from €800,000 to €1.3 million (the rate scale starts below the trigger threshold once you cross it), up to 1.5% on the slice above €10 million.
• Mortgages on the property are deductible from the taxable value, which substantially reduces IFI for financed purchases.

For an American owning a €1.5 million Paris apartment with no mortgage, IFI is typically €2,500 to €4,000 per year. With a mortgage that reduces the net value below €1.3 million, IFI does not apply.

Charges de copropriété (building charges)

Not a tax, but a recurring cost: monthly or quarterly contributions to the building's homeowners' association for common area maintenance, elevator, concierge, building insurance for common areas, etc.

In central Paris, typical range is €30 to €70 per square meter per year, depending on the building's amenities. On a 100 sqm apartment in a Haussmann building with elevator and concierge, expect €4,000 to €6,000 per year.

US taxes and reporting obligations

Reporting the asset itself

The Paris apartment is a foreign real estate asset. It is not directly reportable on FBAR or FATCA forms (which cover financial accounts, not real estate).

However, US persons must report the property on their US federal income tax return if it generates income (rental) or upon sale (capital gains). The property is also relevant for US estate tax calculations if you die owning it.

Reporting the French bank account (FBAR)

If your French bank account exceeds $10,000 at any point during the calendar year, you must file an FBAR (FinCEN Form 114) by April 15 of the following year, with an automatic extension to October 15.

The threshold is the aggregate balance across all your foreign financial accounts, so even if your French account never exceeds $10,000 individually, it counts toward the aggregate if you have other foreign accounts.

FBAR is a standalone filing to the US Treasury (FinCEN), separate from your IRS tax return. Penalties for non-filing are severe: $10,000 per violation for non-willful failure, much higher for willful failure.

Reporting under FATCA (Form 8938)

If the value of your specified foreign financial assets exceeds the FATCA thresholds, you must file Form 8938 with your federal income tax return. Thresholds for taxpayers living in the United States:

• Single filers: $50,000 on the last day of the year, or $75,000 at any point during the year.
• Married filing jointly: $100,000 on the last day of the year, or $150,000 at any point during the year.

Thresholds are higher for taxpayers living abroad. Form 8938 covers financial accounts (your French bank account) and certain other foreign financial assets. The property itself is not reported on Form 8938.

Reporting French rental income to the IRS

If you rent your Paris apartment, the rental income is taxable in both France and the United States. The US-France tax treaty prevents double taxation through a foreign tax credit for French taxes paid.

The mechanics:

• You report the rental income on Schedule E of your US Form 1040.
• You can claim depreciation on the property (typically over 30 years for foreign residential rental property), which often reduces the US taxable amount substantially.
• You can claim a foreign tax credit on Form 1116 for French income tax paid on the same rental income, eliminating most or all of the US tax on that income.

For most American owners renting their Paris apartment, the net US federal tax on French rental income is near zero after foreign tax credit. The French side typically takes the entire tax bite, and the US treaty mechanism ensures no double taxation.

French taxation of rental income

Non-resident landlords are taxed in France on French-source rental income at:

• 20% flat rate on income up to €28,000 per year.
• 30% flat rate on income above €28,000.
• Plus 17.2% in social contributions (CSG/CRDS), though American owners can typically claim exemption from CSG/CRDS under the US-France social security agreement if they file appropriately.

For furnished rentals (location meublée), election to the LMNP (Loueur en Meublé Non Professionnel) regime allows substantial deductions including depreciation, often resulting in near-zero French taxable income on rental properties for the first 5 to 10 years of ownership.

US capital gains on sale

When you eventually sell the Paris apartment, the capital gain is taxable in both countries:

• In France, the capital gain is taxed at 19% plus social contributions, with a sliding scale of allowances based on holding period: full exemption from income tax after 22 years of ownership, full exemption from social contributions after 30 years.
• In the United States, the long-term capital gain (held over 1 year) is taxed at federal rates of 15 or 20% depending on your tax bracket, plus state taxes if applicable. The foreign tax credit applies to French taxes paid on the same gain.

The cost basis for US purposes includes the original purchase price, frais de notaire, our buyer's agent fee, and capital improvements made over the holding period. Routine maintenance is not added to basis.

US estate tax considerations

If you die owning a Paris apartment, the property is included in your US gross estate for federal estate tax purposes (currently exempt up to roughly $13 million per person under the 2026 framework, but this is scheduled to change).

The property is also subject to French inheritance law and tax, which differs substantially from US inheritance frameworks. France has forced heirship rules that may protect children and certain other heirs regardless of will provisions.

For Americans with significant Paris real estate and complex family situations (blended families, non-US spouses, children in multiple countries), estate planning should be reviewed with both a French notaire and a US estate attorney, ideally before purchase. We coordinate these introductions for clients who request them.

How we coordinate with your US CPA

For every American client, we work in coordination with their existing US CPA or tax preparer. Specifically:

• We provide a closing summary in English itemizing all costs paid in France that are relevant for cost basis (purchase price, frais de notaire, our fee).
• We provide a bank account opening confirmation documenting the French bank account for FBAR and FATCA reporting.
• For clients who rent the property, we provide an annual rental income summary in English with French-side tax filings, so the US CPA has everything needed for Schedule E and Form 1116.
• For clients we onboard fully, we can also coordinate annual French filings with our partner accountants (French CPAs experienced with non-resident American owners), so both sides of the Atlantic are handled in coordination.