French private taxation

Are you a posted employee, entrepreneur or retiree thinking about moving to France?

Starting a business in France requires foreign companies to examine their project from many angles. This includes personal taxation in France and international tax law. Foreigners planning to retire in France must also analyse their future local and global tax liability.

Personal taxation in France: a complex area for foreigners to understand

Whether employees, foreign managers of French entities or retirees are residents or non-residents, it is essential to understand and correctly apply the rules governing income and wealth taxation. Rather than trying to navigate the myriad provisions and the Franco-British tax treaty on your own, entrust the review of your files and the preparation of your tax returns to professionals.

Frequently asked questions from foreigners about personal taxation in France

A foreign company setting up a business in France faces many questions regarding the tax regime and taxation of income and assets of foreign employees, whether expatriates or impatriates.

Here are some questions that our tax specialists answer regularly:

What are the conditions for obtaining expatriate status in France? What tax benefits are associated with it?
How can you determine whether a foreign national is a tax resident or non-tax resident in France?
What are the reporting obligations in France for French tax residents? And for non-residents?
What is the IFI (property wealth tax) and who does it apply to in France?
What aspects of my wealth do I need to declare in France?
What are the different tax agreements that apply to me?
How do I apply a tax credit abroad for double taxation?
How does inheritance tax work in the territory?

Foreigners who are considering retiring in France ask themselves the following questions:

How is my pension paid by my country of origin taxed?
Do I have to file a tax return in France and for what income or assets?
How does wealth taxation work when you live in France?
What happens to my property income that I keep in my country of origin?

Private tax advice: we prepare French tax returns for individuals

Expand CPA handles the tax returns for foreign individuals required by the French authorities. Whatever your status, resident or non-resident, we support you every year in this sometimes arduous process.

French tax returns for foreigners resident in France

The firm’s tax specialists can help you :

Declaration in France of income from French and foreign sources, i.e. salaries, annuities, pensions, property income, etc
IFI tax return for property wealth tax (impôt sur la fortune immobilière), if the threshold for all assets owned in France or abroad is exceeded
Declaration of bank accounts, digital assets, life insurance policies, etc. held abroad by tax-resident individuals
Capital gains on real estate are carried forward to the tax return (for information only)

French tax returns for non-residents of France

Non-residents must also file an annual tax return. However, they are only taxed on income from French sources.

They are also subject to the IFI (property wealth tax):

For real estate assets and rights held by the tax household on French territory
For shares or stock held in real estate companies, according to specific rules

Application of the Franco-American tax treaty

We specialise in implementing the Franco-American tax treaty in order to avoid double taxation. Depending on the case, we seek reimbursement of US tax credits due to certain double taxation that persists for French residents.

French private taxation: our other services

Our tax specialists offer many other one-off services relating to French personal taxation. Foreign nationals whose employer is a foreign company in France, as well as retirees living on French soil, can be sure that Expand CPA will provide them with a tax adviser when their situation or life plans so require.

We analyse and determine your tax residence

We help foreign companies established in France to determine for each foreign person brought to work there which tax regime applies. We check whether the conditions for French tax residency have been met and explain the consequences to our clients.

We help individuals optimise their French tax position

Tax optimisation is part of the profession of tax specialists. For foreigners who may or may not be resident in France for tax purposes, the complexity of the legislation makes it difficult to choose the right options on your own. Expand CPA, specialising in personal taxation in France helps you to understand the law and minimise taxes:

By complying with regulations
By keeping your personal wealth and liquidity objectives in mind

We analyse the potential application of the impatriate regime

This tax provision is designed to attract foreign employees and managers to France. Expand CPA can help you determine whether you meet the eligibility requirements. Our French private tax experts will then assess the exemptions that may apply to you.

Other benefits for French tax residents

Our firm also offers other one-off assignments relating toFrench private taxation:

Assisting taxpayers in their dealings with the tax authorities
Support and checking of tax returns pre-filled by individual taxpayers
Advice on inheritance matters, analysis of the conditions applicable in the event of receiving an inheritance, simulation of inheritance tax
Monitoring trusts of which the French resident is trustee, beneficiary or settlor and drawing up the relevant declarations
Filing claims for social security contributions on behalf of residents or non-residents who receive healthcare in another EU country

Why entrust your personal tax affairs in France to Expand CPA?

Our accountancy firm is your ideal partner for private taxation in France:

Our teams are fully conversant with French personal tax laws
We have extensive experience in assisting foreign companies established in France and their foreign employees
Our values are based on trust, discretion and honesty

Our other assignments for foreign companies based in France

Expand CPA can also help you with the following aspects:

Frequently asked questions

What is personal taxation?

The impots.gouv.fr website lists all taxes that affect individuals in France:

French or French-source income for people domiciled in France for tax purposes
Specific measures to attract individuals to France (impatriate regime, single 30% flat-rate levy and bonus share scheme)

What is the French withholding tax?

The PAS or prélèvement à la source system amounts to deducting tax directly from the income paid to an employee or from a pensioner's pension. France has been applying this process since the beginning of 2019, as have many countries around the world. This does not prevent people from fulfilling their annual tax return obligations. The PAS rate is calculated on the basis of income for the year (N-2).

An adjustment will therefore be made when the tax due by the individual is finally calculated.

How does IRPP income tax work?

IRPP stands for "personal income tax". This is the tax calculated each year for all individuals, following the return to be filed in the spring. IRPP is calculated on a wide range of sources of income (salaries, retirement pensions, but also the income of professionals not subject to corporation tax, etc.).

Some expenses are deductible or are subject to a tax reduction or credit. is based on tax brackets. It takes into account a family quota, i.e. a number of shares per tax household, depending on its composition.

What is the ‘general social contribution’ (CSG)?

The CSG is a French social levy, a tax of sorts. It is used to finance social protection. This contribution is applied to income, salaries, pensions and unemployment benefit, as well as to income from investments and assets. To find out whether you are eligible for this tax as a foreigner resident in France, ask a chartered accountant like Expand CPA.

How does property gains tax work in France?

Individual taxpayers who sell property, as well as partnerships not subject to corporation tax, are subject to a flat-rate tax on the sale. The capital gain corresponds to the subtraction of the sale price from the purchase price. Allowances apply to the amount of the capital gain. Capital gains tax is calculated at a rate of 19% in 2024.

Added to this are various social security deductions totalling 17.2% in 2024 (including CRDS and CSG). Expand CPA will be happy to help you assess the taxation of such a capital gain and correctly apply the allowance, whether permanent or temporary, in accordance with French tax law.

What is the French taxpayer's right to make a mistake?

The impots.gouv.fr website is a public service that manages tax and provides information to taxpayers. As a tax resident in France, you will find information on your rights and obligations in terms of taxes and levies. France has introduced the right to make a tax error. Any taxpayer can regularise their situation, without having to pay penalties, when the error is an inaccuracy or an omission. This system is similar to the American system for regularising tax affairs.

How much tax do individuals pay in France?

An individual resident in France for tax purposes is subject to IRPP, personal income tax, as well as CSG and CRDS. Depending on the size of their assets, they are liable for IFI (tax on real estate wealth). They also pay value-added tax (VAT) on most of their taxable purchases. As the final consumer, they cannot reclaim it.

In addition to their tax liability in the country, they pay local taxes such as property tax if they own a property. If they own a second home, they also pay council tax.

Taxation of private individuals in France: our services

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