France Non-Resident Tax Guide

the French tax rules for non-residents. The guide covers: the scope of taxation — non-residents are taxed only on their French-source income (the "revenus de source française"). The French-source income includes: (a) salaries paid by a French employer or for work performed in France, (b) rental income from property located in France, (c) dividends from French companies, (d) interest from French debtors, (e) capital gains on the sale of French real estate, (f) capital gains on the sale of shares in French companies if the shareholder holds at least 25% of the shares (the "seuil de 25%"), (g) pensions paid by a French entity; the withholding tax on French-source income — (a) salaries: the employer withholds the tax at source (the "prélèvement à la source") at the standard rate (0–45%) or at the minimum rate of 20% (the "taux minimum forfaitaire" — 20% for salaries up to €45,250, 30% above), (b) dividends: the withholding tax is 12.8% (plus social charges at 17.2% for EU/EEA residents, or 0% for non-EU residents under certain treaties), (c) interest: the withholding tax is 12.8% (or 0% under most tax treaties — the "exonération de retenue à la source"), (d) capital gains on real estate: the withholding tax is 19% income tax + 17.2% social charges = 36.2% (withholding collected by the notary at the time of sale); the minimum tax on rental income (revenus fonciers) — non-residents must pay a minimum income tax of 20% on their French rental income (the "taux minimum de 20% sur les revenus fonciers"); if the non-resident's total income from all sources is below a certain threshold (€15,250 per year), the minimum rate does not apply; the non-resident can deduct the actual expenses (the "régime réel") or use the micro-foncier regime (30% deduction); the tax return for non-residents — non-residents must file the "déclaration des revenus n° 2042" (the standard tax return) and the "déclaration n° 2042 NR" (the specific return for non-residents); the deadline for filing is approximately 30 June of the following year (later than for residents — the 20 May to 8 June deadlines do not apply to non-residents); the non-resident can file the return online (the "déclaration en ligne" on impots.gouv.fr) or by paper; the social charges for non-residents — non-residents are subject to the social charges (CSG + CRDS = 17.2%) on French rental income and on French capital gains on real estate; the non-resident can be exempt from social charges if they are covered by the social security system of another EU/EEA country (the "exonération de CSG-CRDS" under the EU social security coordination rules); the non-resident must provide a certificate of coverage (the "formulaire S1" or the "certificat A1") to claim the exemption; the non-resident representative (représentant fiscal) — a non-resident taxpayer who sells French real estate or receives French rental income may need to appoint a "représentant fiscal" (a tax representative) who is jointly liable for the payment of the tax; the representative must be approved by the DGFiP; the representative charges a fee (approximately 0.5–1% of the transaction value).

Non-residents are subject to French tax on their French-source income, but the tax treaties provide significant relief. All amounts in Euros (EUR). For related reading, see our Cross-Border Tax Guide → and Tax Filing Procedures Guide →.

Withholding Taxes

Dividends: Non-residents are subject to a withholding tax of 12.8% on French dividends (the "retenue à la source sur les dividendes"). The social charges (17.2%) apply only to residents of EU/EEA countries. The treaty rate may be lower (e.g., 15% under the France-US treaty, 0% under the France-UK treaty for certain shareholdings).
Capital gains on real estate: Non-residents are subject to a withholding tax of 36.2% (19% income tax + 17.2% social charges) on the capital gain from the sale of French real estate. The notary collects the withholding at the time of the sale. The non-resident can claim a refund if the tax due is less than the withholding.

For the non-resident tax representative requirements and the fee structures, see the DGFiP's "Représentant fiscal" page. For the tax treaties and the reduction of withholding taxes, see our Tax Treaties Guide →.