France Tax Treaties Guide
the French network of double tax treaties. The guide covers: the treaty network — France has one of the most extensive tax treaty networks in the world, with over 120 treaties signed and ratified; the treaties follow the OECD Model Convention (the "Modèle OCDE") with adaptations specific to each partner country; the key provisions of the treaties — (a) residence (Article 4 of the OECD Model): the tie-breaker rules for individuals — the permanent home, the centre of vital interests, the habitual abode, the nationality; the place of effective management for companies; (b) permanent establishment (Article 5): a fixed place of business, a construction site (12 months), a dependent agent; (c) business profits (Article 7): the profits of an enterprise are taxable only in the country of residence, unless the enterprise has a PE in the other country; (d) dividends (Article 10): the withholding tax rates are reduced under the treaties — 0% for certain cross-border dividends (e.g., France-Luxembourg, France-Netherlands), 5–15% for others; (e) interest (Article 11): 0% withholding tax on interest under most treaties (the "exonération"); (f) royalties (Article 12): 0% or 5–10% withholding tax on royalties under most treaties; (g) capital gains (Article 13): the gains on the sale of shares are taxable in the country of residence, except for the gains on the sale of shares in real estate companies (the "sociétés à prépondérance immobilière"); (h) pensions (Article 18): pensions are taxable in the country of residence; the procedure for claiming treaty benefits — the taxpayer must: (a) provide a certificate of residence (the "certificat de résidence fiscale" — form 5000 for individuals, form 5001 for companies) issued by the foreign tax authority, (b) file the certificate with the French tax authorities to claim the reduced withholding tax rate; the reduced rate is applied at source by the payer (the French bank or the French company) only if the certificate is provided before the payment; the most important treaties for France — (a) the France-Germany treaty (1969, amended 2015) — dividends: 0% or 15%; interest: 0%; royalties: 0% or 5%; (b) the France-UK treaty (2008) — dividends: 0%, 10% or 15%; interest: 0%; royalties: 0%; pensions: 0% (for UK state pensions); (c) the France-US treaty (1994, amended 2005) — dividends: 15% (5% for 10%+ holdings); interest: 0%; royalties: 5% or 10%; (d) the France-Belgium treaty (1964, amended 2003) — dividends: 10% or 15%; interest: 15% or 0% (exemption for certain types); royalties: 0% or 5%; (e) the France-Switzerland treaty (1966, amended 2018) — dividends: 0%, 15% or 35%; interest: 0%; royalties: 0%; (f) the France-Luxembourg treaty (1958, amended 2014) — dividends: 0% or 15%; interest: 0%; royalties: 0%.
France's extensive treaty network provides significant relief from double taxation. All amounts in Euros (EUR). For related reading, see our Cross-Border Tax Guide → and Non-Resident Tax Guide →.
Key Treaty Rates
- Dividends — typical rates: (a) 0% for shareholdings above a certain threshold (e.g., 10% for Lux, 5% for Germany), (b) 15% for portfolio holdings (under 10% or 5%), (c) 35% for certain countries (e.g., Switzerland for dividends not covered by the treaty).
- Interest — 0% under most treaties: Most French tax treaties provide for 0% withholding tax on interest. This is one of the most favourable aspects of the French treaty network. The interest is taxable only in the recipient's country of residence.
Claiming Treaty Benefits
- Certificate of residence (form 5000): The taxpayer must obtain a certificate of residence from the tax authority of their country of residence (the "certificat de résidence fiscale" — form 5000 for individuals, form 5001 for companies). The certificate must be presented to the French paying agent (bank, company) before the payment is made. If the certificate is provided after the payment, the taxpayer can claim a refund from the DGFiP.
For the full list of treaties and the official texts, see the DGFiP's "Conventions fiscales internationales" page. For the specific treaty provisions for a given country, consult a tax adviser.