
TAXATION
are you a tax
resident?
France’s rich culture, world-class cuisine, and picturesque landscapes have long attracted expats from around the globe. But while life in the land of wine and cheese is idyllic, navigating its tax system can be a maze of forms, rates, and deadlines.
Understanding French taxes is essential for expats who want to avoid costly surprises and ensure smooth financial management. Here’s a practical guide to understanding the French tax system as an expat.
Bienvenue to the French Tax System
Taxes in France go beyond the traditional income tax, covering everything from social contributions to property levies. The key to staying on top of your tax obligations starts with knowing whether France considers you a tax resident.
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so, are you a tax resident in france?
If you answer “yes” to any of these, France likely considers you a tax resident:
Is your main home in France?
Is your professional life centred in France, i.e. your primary work or business is conducted there?
Do your economic interests lie in France, i.e. you hold significant investments or run businesses in the country?
Do you spend more than 183 days a year in France?
As a tax resident, you’re taxed on your worldwide income. Non-residents only pay tax on income earned in France.
the percentages:
The French Income Tax Breakdown. French income tax operates on a progressive scale, meaning the more you earn, the higher your tax rate.
Here’s how the brackets currently look:
Annual Income (€) Tax Rate
Up to 10,777 0%
10,778 - 27,478 11%
27,479 - 78,570 30%
78,571 - 168,994 41%
Above 168,995 45%
deductions:
Expats can reduce their tax bill through various deductions, including:
Childcare Expenses
Home Renovation Costs
Charitable Donations
However, no escaping the social security contributions!
Working in France means mandatory contributions to its social security system, which funds essential services like healthcare, pensions, and unemployment insurance. Expats working under a French contract pay these contributions just like locals.
Owning Property in France?
You’ll Pay These Taxes:
Whether you're living in a charming Parisian apartment or a countryside retreat, expect these property-related taxes:
Taxe Foncière: Paid annually by property owners.
Taxe d’Habitation: Previously charged to occupants, though being phased out for most.
Planning to sell your French home? Be ready for a 19% capital gains tax plus social charges.
What About the Wealthy? Meet IFI
If you own French property worth over €1.3 million, the Impôt sur la Fortune Immobilière (IFI) might apply. This wealth tax targets high-value real estate and requires an annual declaration.
Navigate like a pro
Navigating the French tax system can feel overwhelming, but with the right approach, it’s manageable. At A New Life in France, we and our trusted partners specialize in French and international tax law to provide you with tailored guidance. Staying informed is essential, as France’s tax regulations change frequently—our regular updates ensure you’re always in the loop. Official resources, like the tax website impots.gouv.fr, offer valuable tools such as forms and calculators to keep you on track. Proper planning, professional advice, and organization are key to compliance, enabling you to fully enjoy all that France has to offer—from croissants and wine to lavender fields and the Riviera. Whether you need general advice or dedicated support, our team is here to help every step of the way.
dates for
your diary
The French tax year runs from January 1 to December 31, with deadlines typically falling between mid-May and early June. Expats must declare all income worldwide using Form 2042 and any relevant supplementary forms.
Paper Filers: Mid-May
Online Filers: Late May or early June, depending on your region