Taxation in France for Expats:
A Complete Guide to Rates & Key Rules
Please note this is a snapshot of the taxation in France, and at all times you should seek professional advice. Here at SJB Global and SJB US, we can help you with this either directly or through our carefully chosen partners.
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Contents
1. Are You a French Tax Resident?
You’re treated as a resident in France if any one of these is true: your home or mainstay is in France; your main professional activity is in France (unless clearly ancillary); or your centre of economic interests is in France. These criteria are set in CGI art. 4 B
Residents are taxed on worldwide income (subject to treaty relief).
2. How French Income Tax is Calculated (Barème + Quotient Familial)
France uses a progressive scale per household “parts” (quotient familial). For 2025 declarations (income 2024) the bands per part are:
- Up to €11,497: 0%
- €11,498–€29,315: 11%
- €29,316–€83,823: 30%
- €83,824–€180,294: 41%
- Over €180,294: 45%.
Withholding at source (PAS). Tax is withheld monthly and reconciled after you file in the spring. From September 2025, individualised rates will become the default for married/PACS couples (you can opt out).
Filing window (2025) opened 10 April 2025; online deadlines ran 22 May / 28 May / 5 June 2025 by département.
3. Extra High-Income Levies (Residents)
CEHR (Contribution exceptionnelle sur les hauts revenus)
3%–4% On the portion of Revenu Fiscal de Référence (RFR) above €250k single / €500k couple.
New 2025 CDHR (contribution différentielle)
Ensures a minimum effective 20% tax for those above the same thresholds (with a smoothing mechanism).
4. Social Charges (“Prélèvements Sociaux”) on Investment & Rental Income
Standard composite rate for residents is 17.2% (CSG 9.2% + CRDS 0.5% + prélèvement de solidarité 7.5%). Some exemptions apply.
Important EU/UK S1 rule. If you’re a resident in France but affiliated to another EU/EEA/Swiss state’s social security (including qualifying UK affiliation post-Brexit), you’re exempt from CSG-CRDS on investment/rental income; the 7.5% solidarity levy still applies.
5. Salary, Pensions & Popular Income Types
Employment income
Taxed at the progressive scale. Withholding applies via your employer; you can update your rate during the year if your situation changes.
Pensions
Generally taxable in France for residents unless a tax treaty assigns taxation to the source state (e.g., many government service pensions). French law also has a 10% pension abatement (caps/conditions apply—see your tax notice). Check your treaty.
Dividends, interest, capital gains on shares
France’s flat tax (PFU) is 30% = 12.8% income tax + 17.2% social charges; you may elect the progressive scale instead.
6. Rental Income (Resident Landlords)
- Unfurnished (revenus fonciers): Micro-foncier applies automatically when gross annual rents ≤ €15,000 → 30% abatement; beyond that (or on option), you use the réel regime (actual costs).
- Furnished (location meublée): Regimes and thresholds changed recently; for certain meublés de tourisme non classés, the micro regime ceiling is €15,000 (from 2025); otherwise standard micro-BIC/BNC thresholds apply (e.g., €77,700 for many services). Always verify your category and year.
- Social charges: 17.2% standard (see S1 note above).
7. Capital gains
Real estate (residents)
- Tax: 19% income tax + 17.2% social charges (subject to holding-period abatements).
- Exemptions: The Main home is fully exempt if conditions are met.
- Holding abatements: Income-tax portion fully exempt after 22 years; social charges fully exempt after 30 years.
- High-gain surcharge applies above €50,000 of taxable gain.
Securities (shares/funds)
- Flat tax (PFU) 30% by default; option for progressive scale possible.
French Tax Rates for Expats: Downloadable Guide
Get a clear overview of French income tax, social charges, rental income rules, wealth tax, and more. Download the PDF version of this guide to keep for future reference or share with your adviser.
Moving to France from the UK: Tax & Financial Guide
Plan your move with confidence. This guide covers the key tax, pension, and financial planning steps UK nationals should take when relocating or settling in France.
8. Wealth Tax on Real Estate (IFI)
Applies if your net French/worldwide real estate (depending on residency/treaty) exceeds €1.3 m on 1 January. Rates:
- €0.8–1.3 m: 0.50%
- €1.3–2.57 m: 0.70%
- €2.57–5 m: 1.00%
- €5–10 m: 1.25%
- Over €10 m: 1.50%
(With a decote just above the entry threshold.)
9. Local property taxes
Taxe foncière (owners)
Based on the property’s cadastral rental value × local rates; due by the person who owned on 1 January. Annual base values are revalued; local councils may change rates.
Taxe d’habitation
Abolished for principal residences since 1 January 2023, still due on second homes, often with local surcharges in “zones tendues.”
10. VAT (TVA)
Standard 20%, with reduced rates of 10% and 5.5% (and 2.1% for specific items). Home renovation can qualify for reduced rates, subject to conditions.
11. Inheritance & Gift Tax (succession/donation)
Spouse/PACS
Exempt from inheritance tax.
Children/parents
€100,000 allowance per link; progressive bands 5% → 45%.
Siblings
Allowance €15,932, bands 35%/45%.
Other: 60%. The 2025 law also introduced a new temporary donation exemption (under conditions) for funds used to buy/renovate a principal residence. Worldwide reach can apply where either the deceased or the heir has been resident in France (conditions apply).
12. Business/Corporate Rates (briefly)
Corporation tax (IS): 25% standard rate (2025).
Local business taxes continue to evolve (e.g., CVAE phase-out); check your adviser if you run a French company.
13. Double-tax Treaties (UK, US & Others)
France has a wide treaty network that prevents double taxation and often assigns who taxes pensions, salaries, interest/dividends, and gains. Where income is exempt in France by treaty, it may still be used in France to set your taux effectif (effective rate) on other income; when taxed in France, a credit may relieve foreign tax already paid. Always apply the relevant treaty articles and declare via Form 2047 as needed.
Example (UK–France): Private pensions are typically taxable in the state of residence; many government service pensions are taxed by the paying state (subject to nationality rules). Check the 2008 treaty text and notes.
14. Practical Checklist for Expat Residents
- Confirm residency (CGI 4 B tests) and audit treaty tie-breakers if you have ties to another country.
- Choose PFU vs progressive each year for investment income based on which is cheaper overall.
- Consider S1 status (EU/EEA/Swiss/UK affiliation) to avoid CSG-CRDS on investment income if eligible.
- Pick the right rental regime (micro vs réel) and watch the changed thresholds for furnished lets.
- Track IFI if real-estate net worth nears €1.3 m.
- Mind filing dates and your PAS rate (individualised by default from Sept 2025).
Quick-Reference: Headline 2025 Rates
- Income tax bands (per part): 0% / 11% / 30% / 41% / 45% (see exact thresholds above).
- Social charges on investment/rental: 17.2% (7.5% solidarity only if S1-type exemption).
- Flat tax (PFU): 30% (12.8% IR + 17.2% PS).
- Real-estate gains: 19% + 17.2%; main-home exemption; abatements to 22/30 years; possible surcharge >€50k gain.
- IFI: threshold €1.3 m; rates 0.5% → 1.5%.
- VAT: 20% standard; 10%/5.5%/2.1% reduced for specific items/works.
- High-income levies: CEHR 3–4%; CDHR (new) minimum 20% effective tax over €250k/€500k RFR.
French Tax Rates for Expats: Downloadable Guide
Get a clear overview of French income tax, social charges, rental income rules, wealth tax, and more. Download the PDF version of this guide to keep for future reference or share with your adviser.
Moving to France from the UK: Tax & Financial Guide
Plan your move with confidence. This guide covers the key tax, pension, and financial planning steps UK nationals should take when relocating or settling in France.
Final Notes (Not Tax Advice)
French tax rules are nuanced (quotient familial, abatements, treaty overrides, social-charge exemptions, property and local tax variations). For specific planning—especially if you have multi-country income/pensions—run numbers both ways (PFU vs progressive; micro vs réel) and align with the applicable treaty. Taking advice on the above is very important, and a consultation call with a member of the SJB team can help you to look at taxation rates and the impact they can have on your investments, pensions and much more.
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We go through a fact-finding exercise so we can then provide a full financial planning report including a personalised retirement forecast with future projections and work out how on track you are.
Lastly, we will provide a recommendation on any areas where we feel you could improve.
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Area we help with including:
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Licensing & Regulations
Nexus Global specialises in providing a regulatory platform and compliance support to international financial advisers and intermediaries to enable them to meet regulatory requirements to provide their clients with a professional service. The financial advisers trading under SJB Global are members of Nexus Global. Nexus Global is a division of Blacktower Financial Management (International) Limited (BFMI). All approved members of Nexus Global are appointed representatives of BFMI. BFMI is licensed and regulated by the Gibraltar Financial Services Commission (FSC) and bound by the rules under licence number 3647: http://www.fsc.gi/regulated-entity/blacktower-financial-management-international-limited-3647.
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