France

Who Has to File

Declaration of 2025 income, filed in spring 2026

French tax residents declare their worldwide income each year by completing a tax return (declaration des revenus). Non-residents are generally required to declare French-source income only, such as French rental income, French employment income, or gains on French property.

Online declaration (via impots.gouv.fr) is mandatory for almost all households with access to the internet. Paper returns are still permitted in limited circumstances, generally when the taxpayer has no internet access.

Residency Tests

A person is generally a French tax resident if any one of these criteria applies:

• Main home (foyer). The family home is in France, or the person's main habitual residence is in France.
• Professional activity. The main professional activity is carried out in France, unless it is incidental to an activity exercised abroad.
• Center of economic interests. France is the center of economic interests, meaning the principal investments, the business base, or the source of the majority of income.
• Physical presence. A person who spends more than 183 days in France in a calendar year generally qualifies as resident, though the 183-day count is only one of the tests.

The 183-day rule is widely cited but is actually the least important of the French tests. Many people become French tax residents with far fewer days because of family or economic ties. Arrival and departure years can trigger dual-residence issues that require treaty tie-breaker analysis.

Income Tax Rates (2025 income)

France applies a progressive rate schedule to the household's taxable income divided by the number of "parts" (shares) allocated under the quotient familial system.

A household receives one part per adult and additional parts for dependent children. The quotient familial system means actual effective rates depend heavily on household composition.

Flat tax on investment income (PFU)

Dividends, interest, and capital gains on financial investments are generally subject to a flat tax (prelevement forfaitaire unique, or PFU) of 30%, composed of 12.8% income tax and 17.2% social contributions. Taxpayers may elect instead to include investment income in their progressive income tax calculation if that produces a lower result.

Key 2026 Deadlines

Social Contributions (CSG/CRDS)

In addition to income tax, French residents pay social contributions on most income. The main levies are the CSG (contribution sociale generalisee) and the CRDS (contribution au remboursement de la dette sociale). Combined, they typically add 17.2 percentage points to the tax on investment income, and a portion applies to earned income (though most is deducted at source through payroll).

EU/EEA nationals and the exemption

Nationals of EU and EEA countries who are affiliated to a social security scheme in another EU/EEA state can apply for an exemption from CSG/CRDS on investment income, under the Ruyter jurisprudence. This can produce significant savings for cross-border workers and retirees with foreign pensions.

Common Deductions and Credits

• Professional expense allowance. Employees automatically receive a 10% standard deduction on salary income, capped at around €14,426 per year. Actual expenses may be deducted in lieu.
• Childcare credit. Tax credit of 50% of eligible childcare costs for children under six.
• Charitable donations. Donations to approved organizations reduce tax by 66% of the amount donated (or 75% for qualifying organizations helping those in need), capped as a percentage of net income.
• Home energy improvements. The MaPrimeRenov scheme provides credits for qualifying energy-efficiency works in primary residences.
• Foreign tax credit. France's tax treaty network generally provides a tax credit for taxes paid abroad on income that France also taxes, avoiding double taxation.

Real Estate Wealth Tax (IFI)

France replaced the earlier broad wealth tax (ISF) with the Impot sur la Fortune Immobiliere (IFI), which applies only to real estate. It applies to French tax residents whose net taxable real estate assets exceed €1.3 million as of January 1 of each year. Non-residents are subject to IFI only on real estate held in France.

A cap applies so total tax (income tax plus IFI) does not exceed 75% of income in the prior year.

Tax Treaties

France has one of the largest treaty networks in the world, with over 120 bilateral tax treaties in force. For individuals, treaties generally determine which country has primary taxing rights over employment income, pensions, rental income, dividends, and capital gains.

Treaty tie-breakers

When a person qualifies as a tax resident of both France and another country under each country's domestic rules, treaty tie-breaker provisions determine which country is the country of residence for treaty purposes. The tie-breaker typically checks: permanent home, center of vital interests, habitual abode, and nationality, in that order.

Departure year considerations

When leaving France, the departure date generally ends French tax residence. Income earned up to the departure date is taxed in France as a resident. Income after departure may still be taxed in France if it is French-source income. A treaty may override this. The departure year is typically the most complex year for someone leaving France.