Introduction: real estate taxation of buildings used as investments

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Introduction: real estate taxation of buildings used as investments 

The subject matter here is the taxation of buildings used as investments in order to generate rents.

In fact, if a building is exploited as an asset by its owner, it is not subject to any particular taxation and is instead treated in the same way as other assets exploited by the enterprise. 

In this context, the taxation of rents can take several forms: 

Taxes applicable to rents as a form of turnover:

  • VAT, and

  • Levy on rental income (Contribution sur les Revenus Locatifs, CRL). 

Taxation of rental income:

  • this only deals with the situation of professional investors subject to Corporation Tax (CT), directly or via tax-transparent companies, SCI / SNC type, (for income from land received by individuals, see Individuals > Rental income )

  • the tax charge on the exercise of an activity and/or the ownership of real estate (the territorial economic levy (Contribution Economique Territoriale, CET)) including the levy based on company land (CFE), the levy based on campany value-added (CVAE), land tax, the office tax in the Ile-de-France, IDF, etc).


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Tax charges related to the ownership of buildings are often passed on (rebilled) to the tenant and do not therefore generally represent a charge for the owner. However, this situation is changing due to developments in the rental market and/or the law. 

The Pinel law has defined tax charges that can be rebilled to the tenant (for instance, the CVAE cannit be passed on to the tenant. Nevertheless, the land tax and other taxes related to the latter can be rebilled to the tenant).

 The taxation of rents is summarised in the chart below:


This document and the information it contains are intended to provide as complete and accurate information as possible. It is however theoretical in nature and must undergo all necessary checking prior to its application. FiscalImmo and its authors cannot in any circumstances be held liable on the basis of this document.