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France Tax Guide
EuropeLast verified June 2026Worldwide system
- Top income tax
- 45%
- Capital gains
- 0-34.5%
- Corporate
- 25%
- VAT / GST
- 20%
- Residency test
- 183 days
Progressive 0-45%
In short
- France offers one of the best healthcare systems in the world, exceptional food and culture, and very fast home internet.
- No newcomer tax regime: the standard rates above apply to new residents.
- Watch out: The overall tax burden is among the highest in the OECD, including 17.2% social charges on investment income, and daily life needs French.
Verified June 2026 · 2 sources
Recent changes
- 2026-10-27 correctionHeadline corporate rate corrected from 36.13% to 25% (15% SME rate on the first €42,500; 3.3% social contribution above €763,000 of tax).
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 Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes+
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimesTax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
Flat 30% PFU or progressive rates plus social charges; real estate 34.5%
Wealth & Inheritance
Special Regimes
Practical Notes
High tax burden. Social charges (17.2%) apply to investment income. Wealth tax on real estate.
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treaties+
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treatiesCorporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- SME reduced rate
- Research tax credit (CIR)
OECD Pillar Two (15% global minimum tax)
French Finance Law 2024 transposed EU Directive. QDMTT, IIR, UTPR all in force.
See full implementation trackerTax Treaty Network
US-France treaty has notable carveouts for French pensions and savings instruments. Totalization in force.
See full treaty matrixBeyond tax
Living in France
France offers one of the best healthcare systems in the world, exceptional food and culture, and very fast home internet.
- Expat hub
- Paris
- Monthly budget
- ~$4,000
- Climate
- Oceanic, 13°C
- Time zone
- UTC+1
- Tax35
- Cost of living$$$$
- Safety65
- Healthcare90
- English50
- Internet290 Mbps
- Warm climate40
- Residency access40
- Scores 0-100, higher is better. Editorial composite ratings; see method.
Ways to get residency
- Talent PassportQualified employee, founder, investor or recognised talent meeting category thresholds
- Long-stay visitor visa (VLS-TS visiteur)Sufficient passive income or savings, no work in France
Watch out: The overall tax burden is among the highest in the OECD, including 17.2% social charges on investment income, and daily life needs French.
See how France ranks for remote workers, retirees and familiesData 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 25%. 25% standard rate; 15% on the first €42,500 for qualifying SMEs; 3.3% social contribution on corporate tax above €763,000; a temporary exceptional surcharge applies to very large companies
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.
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