Annual contribution on rental income (CRL)
Verified 02 September 2022 - Directorate for Legal and Administrative Information (Prime Minister)
The annual contribution on rental income (CRL) is a contribution of 2.5% on rents for residential, business or commercial premises situated in buildings completed 15 years ago. Where the rental income gives rise to the payment of VAT or is less than €1830 by local, they are not concerned by the CRL.
Infographie - 6 key questions on CRL
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What is CRL?
It's a contribution on rental income.
It is calculated on the rental of residential, commercial or business premises.
Who has to pay the CRL?
Only the legal owner, i.e.:
- Commercial businesses (SAS, SARL...)
- Civil real estate businesses (SCI)
- Businesses in a general name (SNC)
- Associations, foundations and congregations.
What type of rental is involved?
Rentals in real property completed at least 15 years on January 1 of the taxation year.
Are there any exemptions to the payment of the CRL?
Yeah. Yeah. For example:
- Rents of up to EUR 1830 per year per premises
- Rents for which VAT is payable
- Premises owned by the State, local and regional authorities, businesses of mixed economy in the building industry, non-profit organizations and low-cost housing organizations.
What is the CRL rate?
The rate shall be equal to 2,5 % of the net amount of rents received.
How do I pay the CRL?
For businesses subject to business tax: the CRL is paid by a down payment on the date of the last tax down payment on the businesses.
For businesses under the business of persons scheme: the LRA shall be paid at the latest on the date of filing of the income statement. A deposit of 2,5 % shall be paid by the 15th of the last month of the financial year. The balance shall be paid at the latest on the 2nd working day following 1 May.
In other cases: the LRA is paid with the income statement no later than October 15 of the year following that in which the income is collected.
“To note”: All details on the CRL are on Entrepreneur.Service-Public.fr.
The CRL is paid only by owners (landlord) following:
- BUSINESSES (SARL: titleContent, LOCK: titleContent, SCI: titleContent, etc. ) and bodies subject to business tax (IS)
- Not-for-profit organizations (associations, foundations, congregations) that have taxable property income
- Legal persons and groups covered by the taxation of businesses of persons where at least 1 partner is subject to IS (CNS: titleContent, SCM: titleContent, PCS: titleContent, Public Interest Grouping (PGI), etc.)
- Other legal persons and bodies whose rental income is not subject to the SI or the tax regime of businesses of persons: associations or foundations which receive rents in the course of their social activity but which are not subject to a performance reporting obligation.
The sole proprietors are not affected by the payment of the CRL.
Warning
The CRL can be at the expense of the tenant for 50% of its amount. This is the case when the rental concerns commercial premises situated in buildings composed of more than half of residential premises or intended for the exercise of a profession. However, a clause in the lease may preclude this possibility.
The contribution on rental income (CRL) is applicable when the following 4 conditions are met:
- The rental is for the built-up buildings (there is no CRL for bare land).
- Rented premises are located in buildings completed at least 15 years ago to 1er January of the tax year (rural buildings are not covered by the CRL).
- The rental is subject to a lease agreement.
- The annual amount of rents received overshoot 1830 by local.
Buildings completed at least 15 years ago
The CRL applies to leased premises located in buildings completed at least 15 years ago to 1er January of the taxation year.
An immovable is considered to be finished where the state of progress of the works permits actual use or occupation, i.e. where only fitting-out works have to be carried out.
One new construction is not subject to payment by the CRL.
However, if a building completed more than 15 years ago has been the subject of major works (enlargement, construction or reconstruction), it is considered to be a new constructione. In this case, it is therefore exempt from CRL.
Please note
The CRL 2022 must be paid only if the leased premises are located in buildings completed by 31 December 2006.
Rental with a lease agreement
A lease contract is required for the CRL to apply.
These situations may include:
- Current lease agreement
- Lease agreement expired and automatically renewed (ie tacit extension)
- Verbal agreement (i.e. verbal agreement)
Exempt income
The following income is exempt from CRL:
- Revenues of an annual amount less than €1,830by local
- Income giving rise to actual payment of VAT
- Income from rentals granted to the State or to national scientific, educational, assistance or charitable public institutions
- Income from rentals granted to organizations managing homes for the elderly
- Income from lifetime and unlimited rentals
Exempt buildings
Rental income on certain buildings is exempt from CRL. The buildings are:
- Bare land
- Premises made available to disadvantaged persons by associations involved in child welfare or by social welfare organizations
- Non-profit-owned housing
- Buildings owned or intended to be owned by the State, regional or local authorities and public establishments dependent on them
- Buildings belonging to businesses of mixed construction economy
- Buildings forming part of approved holiday villages or family holiday homes
- Buildings owned by low-cost housing organizations
- Premises housing embassies and consulates
- Premises forming part of an agricultural holding
- Dwellings which have been the subject of rehabilitation works financed up to 15% or more by an EU grantAnah: titleContentfor the 15 years following completion of the work
- Dwellings from temporary occupations in the public domain.
The CRL rate is 2.5%.
It applies to the net rental income collected during the taxation period (i.e. the calendar year).
This amount includes:
- Rent
- Exceptional revenue (e.g. door-stepinsurance payments received by the owner to finance works, termination payments paid by the tenant)
- Grants (e.g. those paid by theAnah: titleContent).
- Benefits in kind (e.g. an employer who owns dwellings provides the dwelling benefit to the employees of his company. In this case, , it is taxable to the CRL on the value).
Building owners (landlord) declare and pay the CRL according to their tax regime: business tax (IS) or income tax (IR).
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Lessor subject to SI
Statement
The net amount of rental income received must be indicated in the business tax return no. 2065.
It must be done online in mode EDI or EFI.
Online tax account for professionals (EFI mode)
Online tax account for third-party filers (EDI mode) - Internet transmission of TD/Bilateral files
Payment
The lessor must calculate the CRL himself with the SI balance sheet n°2572.
Business Tax (SI) - Statement of Balance
He pays the CRL by paying a down payment unique with the payment of the last installment of tax on businesses (IS). This deposit is equal to 2.5% taxable revenue collected in the previous financial year.
Lessor not subject to the SI and covered by the business of persons scheme
Statement
The net amount of rental income received must be reported in return No. 2582 or No. 2072 (for real estate businesses).
Rental Income Contribution - Balance Statement
Declaration of civil real estate businesses (CLAs) not subject to business tax
The declaration must be made online in EDI or EFI mode.
Online tax account for professionals (EFI mode)
Online tax account for third-party filers (EDI mode) - Internet transmission of TD/Bilateral files
Payment
One single installment must be paid not later than the 15th day of the last month of the financial year. This CRL deposit is equal to 2.5% taxable revenue collected in the preceding financial year.
When the deposit does not exceed €100It does not have to be paid.
The deposit statement must accompany the payment of the deposit. It is deposited with the company Tax Service (SIE).
Rental Income Contribution - Deposit Statement
Who shall I contact
Lessor not subject to the SI and not subject to the business of persons scheme
Legal persons or bodies governed by public or private law which are not subject to the tax system for businesses of persons and are not subject to the tax system, must make the payment with the declaration of results no. 2073 . For example, associations or foundations collect rents in the course of their social activities.
This declaration shall be made no later than 15 October the year following the year in which the revenue was collected.
It must be filed with the company Tax Office (SIE) on which the legal person or organization depends.
Contribution on rental income (CRL)
Who shall I contact
For any late payment, there is an increase of 5% amounts to be paid to the tax authorities.