Declaring rental income from business premises is a tax obligation that many small and medium-sized enterprise (SME) owners discover… at the worst possible time. Between the DECLOYER scheme for tenants, landlord forms, and the specific rules for real estate investment companies (SCI), mistakes are frequent and the penalties very real. This guide explains who is affected, how to declare, which expenses to deduct, and how to avoid the most common pitfalls.
Who is affected by the declaration of professional rents?
The declaration of rent for commercial premises concerns several distinct profiles. Before looking for which form to fill out, you must first know which side of the lease you are on.
The tenant company
Any business that rents commercial premises (office, shop, warehouse, workshop) and is subject to the Business Property Tax (CFE) must declare its rent amount annually through the DECLOYER system. This obligation applies to businesses subject to corporation tax (IS) or income tax (IR) in the BIC or BNC categories.
Businesses operating under the micro-BNC tax regime are exempt from this declaration. Similarly, a business that does not pay the CFE (business property tax) is not affected.
The landlord
If you own business premises that you rent to another company, you must declare the rent received as income. The applicable tax regime depends on your situation: property income for an unfurnished rental, and business profits (BIC) for a furnished rental (premises rented with the equipment necessary for the tenant's business operations).
The SCI (Société Civile Immobilière)
The SCI (Société Civile Immobilière) is a special case. Its tax regime entirely determines how rents are declared:
- SCI à l'IR The company files form 2072 each year. The partners then declare their share of property income in their personal tax return (form 2044).
- SCI subject to corporate income tax The company files form 2065 and pays corporation tax. The partners are only taxed personally if they receive dividends.
The DECLOYER scheme for tenants: who must fill it out, when and how?
What is DECLOYER?
The DECLOYER (short for DÉclaration des LOYERs, or Rent Declaration) is a mandatory reporting requirement established by Article 1498 bis of the French General Tax Code. It was created as part of the revision of the rental values of business premises (RVLLP), which came into effect on January 1, 2017. Its objective is simple: to allow the tax authorities to update the cadastral rental values used as the basis for calculating property tax and the CFE (Business Property Tax).
This declaration is mandatory every year. even though the rent amount has not changed compared to the previous year.
Who needs to fill it out?
This applies to all tenant companies that meet the following three conditions:
- They are subject to corporate income tax or personal income tax in the category of industrial and commercial profits (BIC) or non-commercial profits (BNC).
- They occupy business premises on January 1st of the year of declaration
- They are liable for the CFE
Liberal professions under the actual regime (declaration 2035), SARLs, SASs and other commercial companies renting an office or warehouse are therefore directly targeted.
When to file the DECLOYER?
DECLOYER follows the tax return filing schedule. For a financial year ending on December 31st, the filing deadline is set for the second business day following May 1st. For the 2026 campaign, the deadline is May 20, 2026.
For companies whose financial year ends on a different date, the declaration must be submitted within three months of the end of the financial year.
How to proceed in practice?
The DECLOYER process takes place in three stages and cannot be submitted via the online professional portal on impots.gouv.fr. It must be done using the EDI (Electronic Data Interchange) procedure, via a partner authorized by the DGFiP (French Public Finances Directorate):
1.Step 1: the EDI-REQUEST. Your EDI partner (often your accountant) sends a request to the tax authorities to obtain the list of business premises linked to you.2.Step 2: The administration's response. The DGFiP responds within a maximum of five days with the pre-filled list of your premises (address, cadastral identifier, category).3.Step 3: The declaration. You complete the information for each property: the annual rent amount excluding taxes and charges, and the occupancy method. Your EDI partner then transmits the declaration via EDI-TDFC.
The amount to declare This is the annual rent excluding taxes and charges for the current calendar year (not the previous year). If the exact amount is not yet known at the time of filing, it can be calculated: January rent multiplied by 12, or first quarter multiplied by 4.
If no premises are returned to you by the DGFiP (French Public Finances Directorate) upon request, no declaration is required. You do not need to do anything.
How does the landlord declare their rental income according to their tax regime?
The tax regime for rental income (unfurnished rental)
If you own a commercial property rented unfurnished (without equipment) in your own name, the rents received are taxed in the category of property income.
Two regimes are possible:
The micro-land scheme This applies if your annual rental income is less than €15,000. The tax authorities automatically apply a standard 30% allowance. You declare the gross amount in box 4BE of form 2042.The actual diet Mandatory above €15,000, or optional below this threshold. You deduct actual expenses using form 2044. This system allows you to record a property deficit that can be offset against your overall income up to €10,700 per year.
The BIC tax regime (furnished rental)
If you rent premises with the equipment or supplies necessary for the tenant's business (professional kitchen, medical equipment, commercial fittings), the income falls under Industrial and Commercial Profits (BIC) pursuant to article 35 I 5° of the CGI.
This system allows for the depreciation of the property by component (structural work, facade, technical installations, equipment), which significantly reduces taxable income. VAT at 20% is mandatory on rental income.
The SCI subject to corporate income tax
A French real estate company (SCI) subject to corporation tax maintains full commercial accounts. It files form 2065 and pays corporation tax on its profits. The reduced rate of 15% applies up to €42,500 of profit, then the standard rate of 25% applies beyond that amount.
The main advantage of a French SCI (Société Civile Immobilière) taxed under the corporate income tax regime is the possibility of depreciating the property, which can reduce taxable income to a very low level for many years. However, capital gains tax on resale is calculated on the net book value (purchase price less depreciation), which can increase the tax burden upon sale.
Deductible expenses: from the tenant's and the landlord's perspective
From the tenant's perspective: rent as an operating expense
For the tenant company, the rent paid for its business premises is an operating expense deductible from taxable income, pursuant to Article 39 of the French General Tax Code (CGI). Three conditions must be met:
- The rent must actually be paid
- It must be justified by a duly executed lease.
- Its amount must be consistent with market prices
Important: If a company director rents premises they personally own to their own company, the rent must be in line with market rates for the area. Excessive rent may be reclassified by the tax authorities.
Additional charges related to the premises (routine maintenance, insurance, energy within the limit of the professional share) are also deductible if they are provided for in the lease and justified.
From the landlord's perspective: deductible expenses under the actual expense regime
Under the actual regime for property income (article 31 of the French General Tax Code), the following expenses are deductible:
| Category | Examples |
|---|---|
| Management fees | Agency fees, management fees, accounting |
| Maintenance and repair work | Boiler replacement, electrical rewiring, facade renovation |
| Loan interest | Mortgage interest (not the principal repaid) |
| Property Taxes | Excluding the portion of the TEOM (household waste collection tax) that is billed to the tenant. |
| Insurance premiums | Non-occupant owner insurance, rent guarantee |
| Condominium fees | Provisions paid to the trustee, adjusted the following year |
This is never deductible : construction, reconstruction or expansion work, property acquisition costs (notary, agency at purchase), loan repayment capital.
To learn more about accounting management for your small or medium-sized enterprise (SME), consult our guide on accounting for very small businesses and SMEs.
Common mistakes and penalties to be aware of
The most common mistakes
For tenants:
- Forgetting to deposit the DECLOYER Because no reminders are received from the administration. This declaration does not appear in the online professional space, which explains why many companies are unaware of it.
- Declare the rent including VAT instead of the rent excluding charges. The amount to be entered is the annual rent excluding taxes and rental charges.
- Do not anticipate the EDI request. The DGFiP can take up to five days to respond. If the request is sent too late, it becomes impossible to meet the deadline.
For landlords:
- Confusing deductible work with construction work. A facade renovation with external insulation that modifies the structure of the building may fall into the non-deductible category.
- Forget about regularizing condominium provisions. The provisions paid to the trustee in year N are deducted in N, then adjusted in N+1 after approval of the accounts.
- Deduct recoverable charges from the tenant, in particular the household waste collection tax, which is the responsibility of the tenant and cannot be deducted by the landlord.
- Neglecting the deductible CSG. A 6,8% portion of the CSG paid on rental income is deductible from the taxable income of the following year (box 6DE). This amount is often overlooked.
The applicable penalties
The penalties provided for by the General Tax Code are as follows:
- DECLOYER not filed or filed late : fine of 150 Euros by the local area concerned.
- Omission or inaccuracy in the DECLOYER: 15 euros per error detectedwith a minimum of 60 euros and a maximum of 10,000 euros per document.
- Rental income not declared by the landlord : increase of 40% of the tax due in case of forgetfulness, brought to 80% in cases of proven fraud (article 1729 of the CGI), plus late payment interest of 0,20% per month.
- Land deficit called into question : if the property is sold before December 31 of the third year following the deduction of the deficit from total income, the deductions are entirely reversed with tax reassessment and late payment interest.
FAQ: 4 frequently asked questions about declaring business rents
I own my business premises, do I need to file a rent declaration?
No. The DECLOYER system only applies to tenants. If you are an owner-occupier, you do not pay rent and therefore do not need to declare anything through this system. The rental value of your property is updated through other mechanisms (property declarations, indexation coefficients).
Can my accountant handle the DECLOYER for me?
Yes, provided that the firm is itself an authorized EDI partner for the EDI-REQUEST protocol, or that it uses a certified service provider. Not all firms necessarily handle this declaration: check with your accountant that they are indeed taking care of this obligation each year.
I have not received a request from the administration, am I still obliged to declare?
The request is sent by the administration in response to an inquiry from your EDI partner. If your partner did not initiate the request, you will not receive anything. This does not exempt you from the obligation. It is your responsibility to ensure that the declaration is correctly submitted each year.
Is the rent I pay to my landlord still deductible from my taxable income?
Yes, with some exceptions. Rent for business premises is a deductible operating expense, provided it is actually paid, justified by a lease, and its amount corresponds to market rates. If you rent premises owned by your own manager, ensure that the rent is set at a level consistent with industry practices, otherwise the tax authorities may reclassify it.
Djaboo: Manage your finances and cash flow in one place
Tracking your rent, deductible expenses, tax deadlines, and cash flow in separate Excel files is the best way to miss something. Djaboo centralizes the financial management of your small or medium-sized business in one place: invoicing, payment tracking, cash flow management, and project management. Discover it now. Djaboo treasury functionality to have a clear view of your cash flows, anticipate your tax obligations and make better decisions on a daily basis.
The information in this article is provided for informational purposes only. For any specific situation, consult your accountant or tax advisor.
