LOGIN or JOIN
information for global expats



Employment Taxation for Expats in France

Submitted: January 2014

Residence

The rules for establishing whether you are resident in France are quite complex and contain some grey areas. Generally you will be considered habitually resident once you have stayed France for more than 183 days during a calendar year. However if you have moved around a lot during the year, and ended up spending more time in France than anywhere else, you may be considered resident if even though you have spent less than 183 days in the country. If you have a home and/or family in France you will generally be considered resident, even if you are working abroad. If you have the larger part of your business in France you will generally be considered resident. If it comes down to a dispute with the court or tax authorities, then such things as whether you can show that you are taxed as a resident of another (non-tax haven) country will generally swing the balance. Dual residency is only possible for individuals coming from country without a tax treaty with France.

It is important to be aware of the terms of any tax treaty that exists between France and your home country as this may well dictate how you are treated with regards to residency and tax. For more details see: Taxation – Tax Treaty Considerations for Expats in France.

As a resident you will be taxable on your worldwide income and gains. If you remain non-resident you will only be taxed French source income.

 

Tax rates and allowances

The tax year runs from 1 January to 31 December.

If you are a resident there is no deduction of income tax made by your employer from your wages or salary. However they will deduct social security contributions. Instead you must pay instalments of tax due in one of two ways:

  1. You can pay two instalments, both equal to one third of the previous year’s final tax liability (part of which is the result of the assessment from two years previously), usually in February and May. In September you then pay the last part of the previous year’s liability, based on the assessment you will have received by then. If a refund is due it will be paid to you.
  2. You can pay by instalments by direct debit monthly. The first 10 payments are one tenth of the previous year’s final tax liability (as above), by the end of which you will have received the previous year’s assessment. You then pay one more instalment at the same rate as the previous 10, and a final instalment for the outstanding balance from the previous year in December. If a refund is due it will be paid to you.

In both cases you can apply to have the instalments reduced if your income drops significantly.

Income tax rates in France follow the tax band method used in many countries, where all income in a band is taxed at the same rate. However to calculate actual taxable income an adjustment is made using a quotient familial, decided by the taxpayer’s family status. This system is only used in France. The taxable income is divided into parts, the number of parts depends on the number of members of the household, and what sort of household it is, as shown in the following table:

DependantsSingle/DivorcedMarried/Civil PartnersWidowed
01.02.01.0
12.02.52.5
22.53.03.0
33.54.04.0
44.55.05.0

The progressive tax table below is then applied to one of the resulting parts, and the result is then multiplied by the total number of parts. The effect of this is that a single/widowed person earning €10,000 will pay 5.5% tax on €3,988 of their income (€10,000-€6,012), whereas a married couple will not pay any tax at all; as once the income is divided by two it is below the threshold for tax. At €15,000 the single person will be paying some tax at 14% (and the whole band at 5.5%) whereas the married couple will only be paying tax at 5.5%. Once dependants are included in the calculation, tax reduction per additional 0.5 on the quotient is limited to €2,000. Special rules apply for certain case such as disabled dependants. One obvious effect of this curious method is that the higher rates of tax effect single people far quicker than others as income rises.

The following table shows the progressive tax rates in France for residents:

Income (€)Rate
Up to 6,0110%
From   6,012  to 11,9915.5%
From 11,992  to 26,63114%
From 26,632  to 71,39730%
From 71,398 to 151,20041%
151,201 or more45%

You will also have to pay four types of social contributions amounting to approx 15%, though a portion of this is usually deductible against tax.

Non-residents are also subject to the progressive tax rates in the table above on French-sourced income. However the tax payable cannot be less than 20% of the French-sourced income. You may have withholding tax of up to 20% deducted by your employer.

Tax returns must be sent in by the date specified on the form; generally this is in late May or early June. There are penalties for late or incorrect returns.

 

Contribute

We value input from our readers. If you spot an error on this page or have any suggestions, please let us know.

 

Moving to France

If you are considering moving to France or are soon to depart, you can find helpful information and advice in the Expat Briefing dedicated French section including; details of immigration and visas, French forums, French event listings and service providers in France.

picture1 Read More

Living in France

From your safety to shoppingliving in France can yield great benefits as well as occasional drawbacks.  Find your feet and stay abreast of the latest developments affecting expats in France with relevant news and up-to-date information.

picture1 Read More

Working in France

Working in France can be rewarding as well as stressful, if you don't plan ahead and fulfill any legal requirements. Find out about visas and passports, owning and operating a company in France, and general French culture of the labour market.

picture1 Read More


 
 
 
 

Information

About | Useful Links | Global Media Partners | Media | Advertising And Sales | Banners And Widgets | Glossary | RSS | Privacy & Cookies | Terms And Conditions | Editorial Policy | Refer To A Friend | Newsletters | Contact | Site Map

Important Notice: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. © Wolters Kluwer TAA Ltd 2017. All rights reserved.

The Expat Briefing brand is owned and operated by Wolters Kluwer TAA Limited.