Home » France » France – Taxation

France – Taxation

France is a beautiful country located in Western Europe. The country has a taxation system that is governed by the French tax authority, Direction générale des Finances publiques. In this article, we will discuss how the taxation system works in France, double taxation agreements, the main taxes expats need to be aware of, special tax breaks that could apply to expats, how and when to file a tax return as an expat, and tax exit procedures for anyone leaving France to move abroad.

The Taxation System in France

The taxation system in France is a progressive system, meaning that the more you earn, the higher your tax rate will be. The tax year in France runs from January 1st to December 31st, and taxes must be filed by May 31st of the following year.

There are several taxes that individuals and businesses in France are required to pay. These include income tax, value-added tax (VAT), social security contributions, local taxes, and wealth tax.

Double Taxation Agreements

France has signed double taxation agreements with several countries, including the United States, Canada, and the United Kingdom. These agreements are designed to prevent individuals and companies from being taxed twice on the same income.

If you are an expat living in France and your home country has signed a double taxation agreement with France, you may be able to avoid being taxed twice on your income. However, it is important to check the terms of the specific agreement as they can vary between countries.

Main Taxes in France

Income tax


Get Our Best Articles Every Month!

Get our free moving abroad email course AND our top stories in your inbox every month


Unsubscribe any time. We respect your privacy - read our privacy policy.


All residents in France are required to pay income tax on their worldwide income. The income tax rate varies depending on income levels and ranges from 0% to 45%.

Value-added tax (VAT)

The VAT rate in France is currently 20%. This tax is applied to most goods and services, including imports.

Social security contributions

All employees in France are required to make social security contributions. The employer and employee each contribute to social security, with the total contribution being 13.7% of the employee’s salary.

Local taxes

Local taxes in France include property tax and residence tax. The amount of tax varies depending on the location and size of the property.

Wealth tax

Wealth tax is levied on individuals who have assets worth more than €1.3 million. The tax rate ranges from 0.5% to 1.5% depending on the value of the assets.

Special Tax Breaks

There are several special tax breaks that could apply to expats living in France. These include:

Foreign tax credit

Expats who pay taxes in their home country may be eligible for a foreign tax credit in France. This credit is designed to prevent double taxation.

Tax deductions

Expats may be eligible for tax deductions for certain expenses, including moving expenses and travel expenses related to work.

Filing a Tax Return in France

If you are an expat living in France, you are required to file a tax return if you meet certain criteria. If you are a resident in France, you are required to file a tax return if your income exceeds €10,084 per year. If you are a non-resident and earn income within France, you must also file a tax return.

The tax return must be filed annually by May 31st of the following year. The French tax authority provides an online platform where you can file your tax return, and it is recommended that you seek the assistance of a tax professional to ensure that you file correctly and take advantage of any applicable tax breaks.

Tax Exit Procedures for France

If you are leaving France to move abroad, you must complete a tax exit procedure with the French tax authority. This procedure involves filing a tax return for the year in which you leave, paying any outstanding taxes, and obtaining a certificate of tax compliance.

The certificate of tax compliance is required to obtain a residence permit or visa in another country. Failure to complete the tax exit procedure can result in a fine and other legal consequences.

France has a progressive taxation system, and individuals and businesses are required to pay several taxes, including income tax, value-added tax, social security contributions, local taxes, and wealth tax. Expats living in France may be eligible for special tax breaks, and it is important to file a tax return correctly and complete the tax exit procedure if leaving the country. It is recommended that you seek the assistance of a tax professional to ensure that you comply with all tax regulations in France.


Latest Videos

In this short video, we dive into the significant health care updates and changes happening globally in 2024. From Germany's insurance cost adjustments to Cyprus's renewed COVID-19 precautions, we cover the essential news you need to know.  Germany's Health Insurance Update:  Starting in 2024, residents in Germany will see a slight increase in their health insurance costs, with a 0.1% rise to a maximum of 1.7%. This adjustment aims to expand coverage for medical care not currently included in statutory health insurance, such as select dental treatments, IVF, and early cancer screenings.  COVID-19 Measures Reintroduced in Cyprus:  With over 3000 new COVID-19 cases, Cyprus is stepping up its game by reintroducing health measures. Requirements now include proof of a negative COVID-19 test for entry into various facilities, emphasizing the importance of vaccination, especially for the elderly, to combat the evolving virus strains.  Free Health Trials in Trieste, Italy:  Trieste launches an initiative for free health screenings, including echocardiograms and blood tests, focusing on preventive care against non-communicable diseases. This move underscores the city's commitment to improving public health through early detection and prevention.  Spain's New Health Advice App:  Madrid introduces a groundbreaking app offering reliable health advice to counteract the widespread misinformation online. This app, part of the 'Madrid Te Cuida' initiative, will guide users to accurate information, from diet tips to medical queries, ensuring the advice is vetted by health professionals.  Expat Satisfaction with Healthcare in Mexico:  A study reveals that expat retirees in Mexico are largely content with the healthcare quality and costs, with many citing significant savings compared to the United States without compromising on care quality. This insight sheds light on the growing trend of healthcare tourism and relocation for medical reasons.  Stay tuned as we unpack these updates, providing you with the insights and implications of these healthcare changes. Whether it's the impact on your wallet or the quality of care you can expect, we've got you covered in this comprehensive overview of health care in 2024. Don't forget to like, share, and subscribe for more health news around the globe!

In this short video, we dive into the significant health care updates and changes happening globally in 2024. From Germany's insurance cost adjustments to Cyprus's renewed COVID-19 precautions, we cover the essential news you need to know.

Germany's Health Insurance Update:

Starting in 2024, residents in Germany will see a slight increase in their health insurance costs, with a 0.1% rise to a maximum of 1.7%. This adjustment aims to expand coverage for medical care not currently included in statutory health insurance, such as select dental treatments, IVF, and early cancer screenings.

COVID-19 Measures Reintroduced in Cyprus:

With over 3000 new COVID-19 cases, Cyprus is stepping up its game by reintroducing health measures. Requirements now include proof of a negative COVID-19 test for entry into various facilities, emphasizing the importance of vaccination, especially for the elderly, to combat the evolving virus strains.

Free Health Trials in Trieste, Italy:

Trieste launches an initiative for free health screenings, including echocardiograms and blood tests, focusing on preventive care against non-communicable diseases. This move underscores the city's commitment to improving public health through early detection and prevention.

Spain's New Health Advice App:

Madrid introduces a groundbreaking app offering reliable health advice to counteract the widespread misinformation online. This app, part of the 'Madrid Te Cuida' initiative, will guide users to accurate information, from diet tips to medical queries, ensuring the advice is vetted by health professionals.

Expat Satisfaction with Healthcare in Mexico:

A study reveals that expat retirees in Mexico are largely content with the healthcare quality and costs, with many citing significant savings compared to the United States without compromising on care quality. This insight sheds light on the growing trend of healthcare tourism and relocation for medical reasons.

Stay tuned as we unpack these updates, providing you with the insights and implications of these healthcare changes. Whether it's the impact on your wallet or the quality of care you can expect, we've got you covered in this comprehensive overview of health care in 2024. Don't forget to like, share, and subscribe for more health news around the globe!

YouTube Video UCB21b-C4O2aXm7H18_GsXMQ_nC_Fs6gU22U

Expat Focus International Healthcare Update January 2024

Expat Focus 31 January 2024 10:36 am

This error message is only visible to WordPress admins

Important: No API Key Entered.

Many features are not available without adding an API Key. Please go to the YouTube Feed settings page to add an API key after following these instructions.