Basic Overview of France’s Tax System

Living as an expatriate can be a wonderful but also complicated experience. There are always amazing opportunities to enjoy, but also it can be challenging to acclimate to the ways different countries function. One such matter that can prove tricky is the issue of taxation. Living and working in any nation usually means you will be subject to that nation’s tax laws. And failing to fulfill tax obligations usually have strictly enforced consequences.

France’s tax system can be a bit tricky to decipher, especially for an ex-pat. The tax charges are relatively high, but the result is a generously broad social security system and a deep safety net. This guide will try to explain the basics of income tax, social security requirements, and other contributions and levies that residents are obligated to pay. Of course, this is no substitute for a good legal consultant, and that is also something that will be discussed here.

The Standards of The Tax System

An individual is required to fulfill French tax obligations if the person is an income earner living in France or if the person is earning income via a French source. France has treaties signed with a few nations to prevent double taxation.

There are slightly different tax laws for tax residents and tax non-residents, and an individual is considered a resident of France if the person spends more than 183 days in a year in France, or if an individual’s family resides in France.

The French tax calendar is the same as the normal calendar; January to December. The end of May is the offline submission deadline, while the deadline for online submission is the end of June. Taxes can be paid in installments covering the last four months of the year. A late filing of tax returns can result in a penalty as large as 10 % of the tax bill.

French tax laws cover an individual’s worldwide income and are calculated relative to the size of a household. Generally, the larger a family is, the smaller the tax regulations will be.

If you are a resident in France you are likely to be required to complete a French tax return, primarily to cover the tax on your income, property sales, or have significant personal wealth. As in the UK, you may also be liable for capital gains tax on gains mainly from the disposal or sale of assets.

In addition to the levies on income, there is a required TV license of about €133 on owning a television as well as a council tax. Expats also have specific capital gains taxes, wealth taxes, and property taxes.

Elitax Consultants

All of the information listed above is a mere overview of what is a complicated system and process. An expat would need legal and financial assistance from experts. Elitax Consultants are such experts. With 20 years of experience aiding expatriates to manage their income and fulfill French tax requirements for both corporations and individuals. can tailor its services to fit any client’s income and schedule.

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