Tax System in France

Expats moving to France will need to be familiar with some regulations of the country. Individuals who work or have come to the country on a permanent basis will be liable to pay taxes as soon as they arrive in the country.

You will be required to pay French Taxes if:

  • You are a resident in France for more than 183 days in one year. This does not have to be all at once
  • France is your main place of resident – Even if you work abroad you will be considered a French tax resident
  • Your main occupation is in France
  • Your assets are in France

Individuals may need to pay tax on all income that is earned worldwide, which includes salaries, rental income, pension and investments.

Dual Taxation

Some countries that have a tax agreement with France will prevent individuals from the same income being taxed twice i.e. from your home country and France. Most of these are EEA citizens.

Tax Rates

France has different tax rates in regards to how much tax will need to be paid, so those who have a high income will be required to pay more tax than those individuals who are on a low income.

There is no PAYE system in France, so you must ensure that you file your tax return every year before the deadline which is usually 31st May providing all the information about how much has been earned etc.

Expats who own property or are self employed will be paying additional taxes. In addition paying tax around 21% of the gross income will go into social security deductions. This should be declared separately from social security contributions.

France has three types of personal taxation

  1. Income Tax
  2. Social Security Contributions
  3. Tax on goods and services

As well as the three types of the above you may have to pay occupier’s tax and property tax.

Expats from EU states will need to pay VAT for anything that is taken out of the country when leaving France. It is highly recommended before leaving the country to contact a VAT expert to see what you are able to take with you.

Social Security

A social security contribution is paid to the state which will help fund the welfare system of the country. This usually covers: Health and Sickness, Pension, Family benefits, accident cover and unemployment benefit.

The amount that is collected is split by the employer as well as the employee; the employer will take away the amount from an employee’s salary every month if not self employed.

Expats who are self employed will be required to contribute 40% of their earnings to social security.