How to optimize the taxation of your rental income in Martinique? Here are strategies to reduce your taxes according to your rental type.
For Unfurnished Rentals
The Micro-Foncier Regime
Offers a 30% allowance for rental income under €15,000 annually.
The Real Regime
Can be advantageous when charges exceed the flat-rate allowance.
Deductible Charges
- Co-ownership charges
- Property tax
- Management fees
- Loan interest
- Insurance premiums
- Maintenance and improvement work
Note: Construction or extension work is not deductible.
Property Deficit
Deficits can be charged against overall income up to €10,700/year (€15,300 for certain renovation work).
For Furnished Rentals
The Micro-BIC Regime
Applies up to €77,700/year with a 50% allowance.
The Real Regime
Often more advantageous thanks to property depreciation which significantly reduces the tax base. The combination of depreciation + deductible charges can reduce or even cancel taxation.
Conclusion
As each situation is unique, we recommend consulting a tax lawyer or wealth management advisor for a personalized optimization strategy adapted to the Martinique market.