The REEL regime is a tax regime for property owners where the property is registered to your name rather than a business.

 

The reel regime is a profit and loss scheme and therefore takes your true income and your true costs into account, deducting all expenditure justifiably related to your furnished rental activity – including mortgage interests, property ownership tax (taxes foncières), insurance, utilities, maintenance & repairs, management or agency fees, advertising costs, accountancy fees, bank charges, as well as an allowance for depreciation each year (calculated on a pro-rata basis according to number of weeks available for rental). You are obliged to have a separate “professional” bank account for the income and expenditure related to this activity.

 

In this regime, you would be obliged to provide all your receipts and rental agency statements (where applicable), bank statements and mortgage statement showing interest paid, copy tax bills, and so on. If you have more expenditure than income, in which case you may have little or no income tax to pay in France. If there are joint owners, you may be obliged to use this regime as the following simplified regime is an “individual enterprise” in one name only. 

 

There is no limit to the amount of rental income that can be earned on this regime. Obviously this regime will require the assistance of a professional accountant.