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France Tax Guide

Europe
Last verified June 2026
Sources & verification

Figures on this page were last verified against the cited sources in June 2026. Always check official sources before making a relocation or incorporation decision.

Best for

  • Zero capital gains

    No CGT on investment, property, or crypto disposals (subject to "investor" classification).

  • Special regime available

    Impôt sur la Fortune Immobilière (IFI) — Wealth tax on real estate only

Personal Tax Score
35/100
High Tax
Business Tax Score
52/100
Mixed

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days or principal home in France or center of economic interests

Income Tax Rates

Top Marginal Rate
45%
Structure
Progressive 0-45%

Foreign Income Treatment

System
Worldwide
Details
French residents taxed on worldwide income; foreign tax credits available

Investment Income

Capital Gains
0-34.5%%
Dividends
12.8-34.5%%
Interest
12.8-34.5%%

Flat 30% PFU or progressive rates plus social charges; real estate 34.5%


Wealth & Inheritance

Wealth Tax
Yes - IFI wealth tax on real estate assets >€1.3M (0.5-1.5%)
Inheritance Tax
Yes - Inheritance tax 5-45% depending on relationship

Special Regimes

Impôt sur la Fortune Immobilière (IFI)
Wealth tax on real estate only

Practical Notes

High tax burden. Social charges (17.2%) apply to investment income. Wealth tax on real estate.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
36.13%
Effective Rate Note
25% standard rate + 10.7% social contribution = 36.13% for large companies; 15% SME rate on first €42,500
Free Zone / Incentives
Limited incentives in certain zones

Withholding Taxes

Dividends
30%
Interest
0%
Royalties
33.33%

VAT / GST

Rate
20%
Note
20% standard VAT; reduced rates 5.5% and 10%

Compliance & Substance

Substance Requirements
High - strict substance requirements
Compliance Friction
High - complex tax system

Notable Regimes

  • SME reduced rate
  • Research tax credit (CIR)

OECD Pillar Two (15% global minimum tax)

LiveQDMTT from 31 Dec 2023

French Finance Law 2024 transposed EU Directive. QDMTT, IIR, UTPR all in force.

See full implementation tracker

Tax Treaty Network

US treatyYes
UK treatyYes
US totalizationYes
Total treaties~125

US-France treaty has notable carveouts for French pensions and savings instruments. Totalization in force.

See full treaty matrix

Data Sources

Last verified: June 2026. Always check official sources before making a decision.

FAQ

What is the personal income tax rate in France?

France has a top personal income tax rate of 45%. The tax structure is: Progressive 0-45%. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in France?

France uses a worldwide system for foreign income. French residents taxed on worldwide income; foreign tax credits available

What are the residency requirements for France?

Tax residency in France generally requires 183 days of physical presence. 183 days or principal home in France or center of economic interests. Always verify current rules with official sources.

Is there a wealth tax in France?

Yes, France does have a wealth tax. IFI wealth tax on real estate assets >€1.3M (0.5-1.5%)

What is the corporate tax rate in France?

The corporate tax rate in France is 36.13%. 25% standard rate + 10.7% social contribution = 36.13% for large companies; 15% SME rate on first €42,500

US citizen moving to France? Read this first.

France's top personal rate of 45% means the Foreign Tax Credit (FTC) usually wins over FEIE for US citizens.

  • FTC (Form 1116) credits France tax against US tax dollar-for-dollar. Because France tax exceeds US tax on the same income, you typically owe zero US tax and accumulate carryforward credits (10-year carry).
  • Self-employment tax is normally exempted via the US-France totalization agreement — pay into one social security system, exempt from the other.
  • For earned income near the FEIE cap (~$130k), FEIE is sometimes simpler administratively. Above the cap, FTC strategy almost always wins given France's rates.
  • France residency days threshold: 183. Treaty tie-breaker rules (where applicable) help with double-tax avoidance.
Read the full US-citizen moving-abroad guide

Need someone to actually plan France for you?

TaxAtlas covers the rates and rules. For the personal side — exit planning, residency strategy, business structure, or filings — request a response and we'll point you to relevant research or a specialist who handles France cases.

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