Since 2025, a taxpayer receiving rental income subject to withholding at source may opt to have it taxed at the final rate of 20%, calculated on the gross taxable amount. The mechanism is intended in particular to simplify the position of employees or pensioners who, without this option, must include rents in their annual return.
How is the option exercised?
The application is filed electronically with the DGI, using the prescribed form. The owner then gives a copy of the acknowledgement of receipt to the tenant responsible for operating the withholding, at least thirty days before the rent falls due for the month following that of filing.
The option takes effect in the month following delivery of the acknowledgement of receipt. It applies to all of the taxpayer's properties whose rents fall within the scope of the withholding. Late delivery, or delivery to only some tenants, may result in different regimes applying during the same year.
Weighing the options
The 20% rate applies to gross income, without the 40% allowance. In the absence of the option, the 10% or 15% withholding is not final: the net rental income after the allowance is added to other income subject to the scale, and the withholding already borne is credited against the final income tax.
The option reduces the administrative burden but is not always less costly. A simulation taking into account other income, family responsibilities and the level of the rents should be carried out before filing.
Sources
- Directorate General of Taxes — Circular note no. 736 on the tax measures of Finance Law no. 60-24 for the 2025 budget year, 2025-03-07.
- Médias24 — 2025 Finance Law: here is the DGI circular note, 2025-03-08.
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This publication is provided for information purposes only and does not constitute personalised tax or legal advice.