Tax in France: Complete Guide for Expats and Foreign Nationals

Understanding tax in France can be complex, especially for expatriates or foreign nationals. This comprehensive guide explains everything you need to know about the French tax system — from residency rules to income tax rates — and how to stay compliant while optimizing your taxes.

For additional information, you can also consult this detailed guide on tax in France for expats.

Who Needs to File a Tax Return in France?

If you live in France, you are generally required to submit a French tax return. This covers income tax, property sales, and wealth tax if you have significant assets. You may also owe capital gains tax when selling a property or asset for profit.

Before making financial decisions or submitting your tax return, it’s highly advisable to seek professional tax advice to ensure compliance.

Double Taxation Treaties

Since December 2009, France and the UK have had a double taxation treaty in place. This ensures that you are not taxed twice on the same income. However, tax must still be paid in one of the two countries.

If you are not a UK citizen, verify whether your home country has a similar double tax treaty with France.

Determining Your French Tax Residency

You are considered a tax resident in France if:

• You spend more than 183 days per year in the country, or
• France is your main residence (meaning your principal home, main business, or family center is located there).

Residency also depends on where your assets are held, where you work, and where your family resides.

Income Tax in France Explained

Residents of France must declare their worldwide income. Unlike many other systems, income tax in France is calculated based on the household (foyer fiscal), not the individual.

The tax calculation depends on the number of “parts” (family units) in your household:

• 1 adult = 1 part
• First two children = 0.5 part each
• Each additional child = 1 part

Example: A couple with one child has 2.5 parts. The total household income is divided by 2.5 to determine the tax bracket. Larger families generally benefit from lower overall taxation.

Unmarried couples must file separate returns unless they are married or in a civil partnership (PACS).

The French PAYE System (Prélèvement à la Source) and Tax Returns

Even with the Prélèvement à la Source (PAS) — France’s version of PAYE — every taxpayer must still file an annual tax return. This ensures your final tax bill is correctly adjusted, whether you owe additional tax or are entitled to a refund.

• Tax year: January 1 to December 31
• Deadlines: Paper returns: End of May | Online returns: End of June

Couples who are married or in a PACS can file jointly or individually. Unmarried individuals must file separate returns.

French Income Tax Rates for 2024

Note: Previous years’ tax rates followed the same progressive structure with lower thresholds.

Late Filing Penalties and Payment Options

Late filing results in a 10% penalty on your final tax bill.

You can pay your taxes in installments (September to December). Future prepayments may also be required to align with the PAYE system.

Other Types of Tax in France for Expats

TV License (Redevance Audiovisuelle)

If you own a television, you must pay an annual fee of €133. If you do not have a TV, you must declare it on your tax return to avoid the charge.

Taxe d’Habitation

This is a local residence tax based on the notional rental value of your property, adjusted by your commune’s rate. It applies to anyone occupying the property as of January 1 each year and is usually paid in October.

Taxe Foncière

Taxe foncière applies to all property owners, regardless of whether they live on the premises. It’s calculated based on the property’s rental value and the commune’s local rate.

Capital Gains Tax in France

If you sell a French property at a profit, you may be liable for capital gains tax unless you have owned the property for more than 30 years.

Since January 1, 2021, non-EU citizens (including UK nationals) must appoint a tax representative (représentant fiscal) when selling a property valued at over €150,000.

French Inheritance Tax (Droits de Succession)

Inheritance tax depends on the residency of both the deceased and the beneficiaries:

• If the deceased was a French tax resident, their worldwide assets may be taxed in France.
• If non-resident, only French assets are subject to French inheritance tax.

Double taxation treaties (e.g., between France and the UK) typically prevent double taxation on the same assets.

Assurance Vie and Its Tax Benefits

An assurance vie serves as a tax-efficient investment vehicle. Upon the holder’s death:

• The spouse or civil partner is exempt from inheritance tax.
• Each beneficiary may receive up to €152,000 tax-free.
• The remaining assets are subject to social charges and, if applicable, inheritance tax.

Keeping Up with Tax Changes in France

French tax rules evolve regularly, and updates can affect your obligations. Staying informed helps you avoid costly mistakes and remain compliant. It’s wise to review your tax situation annually, especially if you have assets or income abroad.

Need Help Managing Your Tax in France?

Understanding and managing tax in France can be overwhelming for expats and foreign nationals.

Taxes in France Group offers reliable, English-speaking support for individuals needing assistance with tax returns, residency issues, or property taxes.

👉 Visit taxesinfrance.com to get professional help tailored to your situation.

FAQ: Tax in France for Expats

1. Do expats have to pay tax in France?
   Yes. If you are a resident or earn income from French sources, you must file a French tax return and may be liable for French taxes.
2. What happens if I live in France for less than 183 days?
   You may still be considered a tax resident if France is your main home or your primary economic and family interests are located there.
3. How can I avoid double taxation?
   France has treaties with many countries, including the UK, that prevent being taxed twice on the same income.
4. Do I need to file a tax return if I’m already taxed at source?
   Yes. Filing a déclaration de revenus is still mandatory, even if your income is taxed under the Prélèvement à la Source system.
5. Are foreign pensions taxable in France?
   In most cases, yes — but it depends on your country’s tax treaty with France.
6. Can I get help filing my French tax return in English?
   Yes. Taxes in France Group provides English-speaking assistance for expats who need help understanding or filing their taxes in France.

Visit taxesinfrance.com for personalized guidance.