Invest in Paris

Taxation on small spaces

In Paris, “micro residences” of less than 14m2 that are rented at above market rates may be subject to a tax deducted at source by the State. Analysis.

In force since 1 January 2012, the aim of the tax on small spaces – also referred to as the “Apparu Tax” after the name of the Secretary of State for Housing who brought it into force – is to prevent property owners from renting handkerchief-sized apartments (maid’s room, studio) for extortionate prices.


Who is subject to the tax?

A landlord is subject to this tax if the following three conditions are met:

  • A tenancy of at least 9 months in an unfurnished property with a surface area of 14m2 or less
  • Located in an area that is “under strain” that is to say where the housing available is inferior to the demand. This is notably the case in Paris and its surrounding area
  • That generates a monthly rental income in excess of 41.61€/m2 in 2015 (as opposed to 41.37€/m2 in 2014).

Note: in order to avoid taxation, a landlord should rent a 10m2 studio at a rent of less than €416,10 (excluding charges). Over and above this sum, tax will be due.


How is the tax levied?

The tax applicable to a “micro residence” varies according to the rent charged in comparison to rent reference figures. There are five tax bands:


Difference between actual rent and reference rent Applicable tariff
Less than 15% 10 %
15% to less than 30% 18 %
30% to less than 55% 25 %
55% to less than 90% 33 %
Equal to or greater than 90 % 40 %

For example: in 2015, a 10m2 maid’s room for rent in Paris at €660 per month (excluding charges) is 59% more expensive than the threshold of €416.10 so, the tax payable by the landlord would be 33%, an annual total of €2,613 ((€660 x 12) x 33%).

There’s nothing illegal about renting a place above the rental threshold set by the State. If a property owner does not want to pay this tax he can chose to lower the rent during or at the end of the tenancy.