Foreign Furnished Landlord: Can They Be Subject to Social Security Contributions in France?

Furnished rentals are attracting many international investors drawn by France’s vibrant tourism sector. When a foreign resident rents out a property in France, must they register with the French social security system? Are they required to pay social security contributions? Here are the key rules to know to properly anticipate this situation.

What Are the Conditions for Social Security Affiliation?

Furnished rentals are considered a professional activity requiring affiliation in two cases:

When annual rental income exceeds €23,000 and the property is rented to clients staying by the day, week, or month without establishing their permanent residence there.
When the landlord qualifies as a professional furnished landlord (LMP) with over €23,000 in rental income, representing the main source of income for the household.

Article L 611-1 of the French Social Security Code and Article 155 IV of the French General Tax Code

What Rules Apply to Foreign Residents?

Mandatory affiliation as a self-employed worker is required, whether the investor resides in France or abroad.

Important: If the foreign investor is not taxable in France on their rental income, social security contributions will be calculated based on a minimum assessment base.

1. Carrying Out Another Professional Activity in the EU, EEA, or Switzerland

If the investor pursues another professional activity in a European Union country, Iceland, Liechtenstein, Norway, or Switzerland, only the social security legislation of their country of residence applies, following the principle of a single applicable legislation.

Article 155 IV of the French General Tax Code

Example:
An Italian architect residing in Italy purchases a property in France and rents it out weekly. If the rental income exceeds €23,000, only Italian legislation will apply. They must obtain form A1 from the competent Italian authorities to justify their situation in France.

2. Carrying Out a Professional Activity Outside the EU with a Bilateral Agreement

If the investor works in a country outside the EU/EEA/Switzerland, it is necessary to verify whether a bilateral social security agreement exists between that country and France.

The recommended steps are as follows:

Identify any other professional activities pursued and their nature (employment or self-employment).
Determine the place of residence to check for the application of an international agreement (https://www.cleiss.fr/docs/index.html).

Conclusion

Furnished rentals in France by a foreign resident can trigger obligations regarding social security contributions. However, exceptions may apply depending on the professional activity carried out and the country of residence. To secure your situation and avoid the risk of dual affiliation, it is strongly recommended to seek advice from a social law specialist or an accountant specializing in international mobility.