Annual contribution on rental income (CRL)
Verified 19 July 2024 - 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. The LRA is paid only by the owners of legal persons (i.e. businesses, associations, private law bodies, etc.). Where the rental income gives rise to the payment of VAT or is less than €1,830 by local, they are not concerned by the CRL.
The CRL is paid only by owners (landlord) following:
- BUSINESSES (SARL: titleContent, LOCK: titleContent, SCI: titleContent, etc. ) and bodies subject to business tax (IS)
- Businesses and groupings subject to income tax (IR), one of whose members is subject to IS (CNS: titleContent, SCM: titleContent, PCS: titleContent, etc.)
- Not-for-profit organizations (associations, foundations, congregations) that have taxable property income
- 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. OK
Warning
The Individual entrepreneurs (IS) are not affected by the payment of the CRL.
The contribution on rental income (CRL) is applicable when the following 4 conditions are met:
- The rental is for built-up buildings (there is no CRL for bare land).
- Rented premises are located in buildings built and completed for at least 15 years 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 €1,830 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.
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 construction. In this case, it is therefore exempt from CRL. Indeed, a new construction is not subject to the payment of the CRL.
Please note
The CRL applies on rental income received in 2023 for buildings completed before 1erJanuary 2008.
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)
The exemptions relate to certain income and leased buildings.
Exempt income
The following rental 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. These are the buildings following:
- 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 forming part of a farm or rural buildings
- Dwellings which have been the subject of rehabilitation works financed up to 15% or more by an EU grantAnah: titleContent, for 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 tax period (i.e calendar year).
This amount includes:
- Rents
- 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 of the benefits in kind).
Building owners (landlord) report and pay the CRL according to their tax system: business tax (IS) or income tax (IR).
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Lessor subject to SI
The lessor must indicate the net amount of the leases in the SI return and then pay the CRL.
Reporting of rental amounts
The net amount of rental income received must be reported on business tax return 2065.
Income Tax Return - business Tax (SI)
It must be done online in EDI or EFI mode.
In EDI mode, the company uses the services of a third party (intermediary or provider) who has the quality of EDI partnerto send returns and payments to the tax authority.
In EFI mode, the company accesses online tax procedures from www.impots.gouv.fr.
Payment of the CRL
The lessor must calculate the CRL himself with the balance sheet of SI n°2572.
Business Tax (SI) - Statement of Balance
He pays the CRL by paying a down paymentunique 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 subject to IR
The lessor must make a declaration and then a payment from the CRL.
Reporting of rental amounts
The net amount of rental income received must be reported in one of the following returns:
For businesses subject to IR: Declaration No 2582:
Rental Income Contribution - Balance Statement
For real estate businesses: Declaration No 2072
Declaration of civil real estate businesses (CLAs) not subject to business tax
Rental Income Contribution - Balance Statement
Declaration of civil real estate businesses (CLAs) not subject to business tax
It must be done online in EDI or EFI mode.
In EDI mode, the company uses the services of a third party (intermediary or provider) who has the quality of EDI partnerto send returns and payments to the tax authority.
In EFI mode, the company accesses online tax procedures from www.impots.gouv.fr.
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 previous 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
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)
- 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.
General Directorate of Public Finance