Income tax in France can be complex for expats living or retiring there, especially when managing income streams from both French and international sources.
Understanding your tax residency status is critical, as it determines whether you are taxed on worldwide income or only on French-sourced earnings.
In this guide, we explain how income tax in France for expats works based on residency status, outline the current income tax rates, and set out the essential filing requirements to ensure full compliance.
What You Will Learn
- Are you liable for income tax in France as an expat?
- How does your residency impact tax in France?
- What are the rates of income taxation in France for expats?
- How and when should you file taxes in France?
Do Expats Have To Pay Income Tax in France?
Yes, all expats living in France have to pay income tax in the country. Expats who are considered French tax residents must pay income tax on their worldwide income, while non-residents are only taxed on income sourced within France.
Your residency status is crucial in determining how much tax you must pay.
When Are You Considered a Tax Resident in France?
Regardless of your nationality, you’ll usually be considered a French tax resident if:
- France is your or your family’s permanent place of residence.
- The centre of your personal and financial interests is in France.
- You spend over 183 days per year in France.
- You earn additional income from French assets such as property or investments.
As a French tax resident, your worldwide income is subject to progressive French income tax rates ranging from 0% to 45%, plus a potential high-income surtax for certain thresholds.
To remain compliant, tax residents must declare all global income, including:
- Earnings from employment.
- Investment returns.
- Dividends.
- Pensions.
- Bank interest.
- Overseas property income.
While some income (such as salaries or rental income within France) may have tax withheld at source monthly, residents are still required to file an annual French tax return, including any foreign income.
If you live in France for fewer than 183 days and your income is paid by an employer based outside France with no strong economic link to France, you may not be taxed on that income.
For example, a US expat employed by a US company who remains paid offshore and has limited French economic ties may not be liable for French income tax.
How Is Your Income Taxed if You’re a Non-Resident?
Non-residents receiving French-sourced income are taxed at the source—meaning the payer deducts tax before paying you. This could result in your income being taxed both in France and in your home country.
However, double taxation is often avoided if a double taxation agreement (DTA) exists between France and your country of residence.
These agreements allow you to either exempt income in one country or claim a tax credit for taxes paid abroad, reducing your overall tax burden.
Income Taxation in France for Expats—How Does It Work?
The amount of income tax you pay in France depends on your total household income and personal situation like your:
- Marital status
- Number of dependants,
- Whether you’re self-employed. Self-employed expats may be eligible for certain business-related deductions before income tax is applied.
French income tax is calculated using the quotient familial system, which divides the taxable income of your household by a number of ‘parts’ (units) based on family composition.
This system benefits couples and families by applying progressive tax rates to a lower portion of income.
- 1 part per adult.
- +0.5 part for each of the first two children.
- +1 part for each additional child.
The combined household income is divided by the number of parts to determine the effective taxable income. The applicable rate is then applied, and the final tax amount is multiplied back up by the number of parts.
What Is the Income Tax Rate if You’re an Expat and a Tax Resident in France?
If you’re an expat who qualifies as a French tax resident, your worldwide income is subject to the following progressive income tax rates for the 2024 tax year (filed in 2025):
| French Income Tax Bracket | Tax Rate in France |
|---|---|
| Up to €11,497 | 0% |
| €11,498 – €29,315 | 11% |
| €29,316 – €83,823 | 30% |
| €83,824 – €180,294 | 41% |
| Over €180,294 | 45% |
High-income earners are also liable for additional tax charges as follows:
- % on income exceeding €250,000 for singles (€500,000 for married couples).
- 4% on income exceeding €500,000 for singles (€1,000,000 for married couples)
If you plan to return to your home country, it’s essential to review your residency position and avoid dual reporting or penalties. Titan Wealth International offers tailored repatriation and tax planning services to help you remain compliant and tax-efficient across jurisdictions.
What Is the Income Tax Rate for Expats Who Are French Non-Residents?
Non-residents are taxed only on French-sourced income. If you’re employed by a French entity, income tax is typically withheld at source through the PAYE (Prélèvement à la source) system.
Standard non-resident withholding rates are:
- 0% on income up to €15,018.
- 12% on income from €15,019 to €43,563.
- 20% on income above €43,563.
In cases where this system doesn’t apply, a flat rate of 20% is used on French-sourced income rising to 30% on income above €28,797 (unless a tax treaty allows a lower rate).
What Are Social Charges in France?
In addition to income tax, expats in France may also be liable for social charges, also known as prélèvement social, which help fund the French welfare system. However, these charges are separate from social security contributions payable on employment income and don’t provide health benefits.
Typical social charge rates:
- Earned income: 9.7% from salaries and unemployment benefits
- Pensions: 7.4% or 9.1%, depending on your pension amount. This refers to retirement or disability income and only applies to expats who are a part of the French healthcare system
- Unearned and investment income: (e.g., capital gains, dividends, rental income): 17.2% – may be reduced to 7.5% if you’re covered by another EU country’s healthcare system
Social charges are calculated based on the income declared in your annual French tax return.
French Tax Advice for Expats—When Should You File Taxes in France?
The French tax year runs from 1 January until 31 December. Typically, you need to file your income tax return by mid-May, but the exact date depends on the administrative division—or department—you live in.
Tax Filing Deadlines
For the 2024 tax year (filed in 2025), the anticipated deadlines are:
- Paper Returns: Mid-May 2025.
- Online Returns: Staggered deadlines based on department numbers, typically from late May to early June 2025.
- Exact dates will be confirmed by the French tax authorities.
While the exact dates for the 2025 filing season (covering the 2024 tax year) have not been released, it is reasonable to anticipate a similar schedule.
You can expect the online tax filing service to open in April 2025, with deadlines for submission likely falling in May and June 2025, depending on your department of residence.
Filing your taxes on time is imperative. If you’re late, you’re liable for a penalty of 10% of the amount of tax you owe. The penalty increases to 40% if you don’t submit a return within 30 days of a formal notice and 80% if the tax office discovers undeclared activity.
Note: Non-residents receiving French-sourced income must file Form 2042 and send it to the Non-Resident Tax Service. Online filing is generally not available for non-residents.
How To File a Tax Return as a French Tax Resident
To file your first tax return as an expat living in France, you’ll need a French tax number known as a numéro fiscal or SPI. If you’re filing for the first time, you can complete your return without it – your SPI will be issued afterward. However, you can also request one in advance via the official French tax portal or at your local tax office (Centre des Impôts).
Steps for first-time filing:
- Complete the return on paper
- Fill in Form 2042 (main income declaration). If you have:
- Foreign income: complete Form 2047
- French rental income: complete Form 2044
- Fill in Form 2042 (main income declaration). If you have:
- Submit your forms to the local tax office
- Send the completed documents to the tax office corresponding to your address. Include your postal code, a copy of your ID, and your marital status
- Create your online tax account
- Once your SPI is issued (usually by email or post), use it to register for an account at impots.gouv.fr. This will enable you to file future returns online and manage your tax account securely.
After your SPI is issued, you must file online from the following year unless you have a formal exemption.
How To File a Tax Return as a French Tax Non-Resident
If you’re a non-resident for French tax purposes but receive French-sourced income, you must complete and send a paper tax return each year.
Use Form 2042, and if applicable:
- Form 2047 for foreign income.
- Any other annexes depending on the income type.
Your completed forms must be posted to the Service des Impôts des Particuliers Non-Résidents – the French tax office for non-resident individuals.
As non-residents cannot file online, it’s essential to allow time for international post. You should also retain a copy of your full submission for your records.
Filing as a non-resident can be complex, especially with mixed income streams, rental income, or tax treaty claims. Speaking to a specialist expat tax consultant can help ensure your return is accurate and that you aren’t overpaying or underpaying French tax.
Key Takeaway
Navigating French tax laws for expats begins with understanding your residency status – this determines how your income is assessed and taxed. Yet identifying whether you’re a French tax resident isn’t always straightforward.
In this guide, we’ve clarified the rules that define tax residency, outlined the income tax rates for both residents and non-residents, and explained how various income sources, such as pensions, property, and investments are taxed under French law.
We’ve also covered when and how to file a French tax return, with specific steps for both residents and non-residents.
At Titan Wealth International, our cross-border tax advisers offer expert guidance on French tax planning for expats, including compliance, repatriation planning, and international wealth structuring, helping you reduce liabilities and plan with confidence.
