Tax in France

Who is the tax authority?

The Direction générale des Finances publiques (DGFiP) is France's principal tax authority. It operates under the Ministère de l'Économie et des Finances and was formed in 2008 by merging the former Direction générale des Impôts and the Direction générale de la Comptabilité publique.

DGFiP handles assessment, collection, and enforcement for personal income tax (impôt sur le revenu), corporate tax (impôt sur les sociétés), VAT (TVA), wealth tax, and inheritance/gift tax. More than 100 regional Services des Impôts offices handle local filings and audits across France's 101 départements.

The taxpayer-facing portal is impots.gouv.fr. Customs and excise — including EU CBAM administration — belong to the separate Direction générale des douanes et droits indirects (DGDDI).

What is the tax year and when are returns due?

France's individual tax year is the calendar year (1 January to 31 December). The prélèvement à la source system — in force since 1 January 2019 — withholds income tax at source monthly for employees and pensioners.

The annual déclaration de revenus (Form 2042 family) reconciles withheld amounts against assessed tax. Online submissions are staggered by département grouping: early groups close in late May, later groups in early-to-mid June. Balancing payments or refunds land in September.

Corporate impôt sur les sociétés (IS) returns are due within three months of the fiscal year-end, or by 15 May for calendar-year companies. VAT returns are filed monthly, quarterly, or annually depending on the régime.

Who counts as a French tax resident?

Under Article 4 B of the Code général des impôts (CGI), an individual is French tax-resident if they meet any one of four criteria: their foyer (household) or principal place of residence is in France; their principal professional activity is in France; or the centre of their economic interests is in France. Each test stands alone — satisfying one is enough.

France uses the foyer fiscal — the tax household — as the unit of assessment, not the individual. Married couples and pacte civil de solidarité (PACS) partners file jointly by default. Dependants receive a quotient familial weight that reduces the effective rate.

Residents are taxed on worldwide income. Non-residents pay tax only on French-source income, generally at non-resident schedules. An exit-tax regime under Article 167 bis CGI applies on emigration for holders of substantial corporate participations.

What are the personal income tax rates?

France's impôt sur le revenu uses a progressive bracket schedule applied to the foyer fiscal. Net taxable income is divided by the number of household parts (one per adult, half for each of the first two dependant children, one full part from the third). The result per part runs through the brackets, then multiplies back up.

The 2024 income bracket schedule (tax year 2024, filed mid-2025) is:

The Contribution exceptionnelle sur les hauts revenus (CEHR) adds a surtax on very high incomes:

Couple thresholds are double: 3% above EUR 500,000 and 4% above EUR 1,000,000.

Most earned and rental income also carries Contributions sociales (CSG/CRDS) — charged on top of income tax:

Employees pay 9.7% total CSG/CRDS on employment income. Capital income is subject to 17.2% social levies, which combine with 12.8% income tax to form the 30% prélèvement forfaitaire unique (PFU) flat rate.

How does corporate tax work?

France's impôt sur les sociétés (IS) has been at 25% since 1 January 2022, completing a multi-year reduction from the historical 33.33% rate. The Contribution sociale sur les bénéfices (CSB) adds 3.3% on IS assessments above EUR 763,000, producing a combined top rate of roughly 25.83%.

France implemented the OECD Pillar Two Global Anti-Base Erosion (GloBE) rules via Articles 223 VJ et seq. CGI for fiscal years beginning on or after 31 December 2023. The Crédit d'impôt recherche (CIR) provides a 30% R&D tax credit on eligible spend up to EUR 100 million and 5% above; it is refundable for SMEs. Thin-capitalisation rules under Article 212 bis CGI cap interest deductibility at 30% of EBITDA.

What are the VAT (TVA) rates?

France's taxe sur la valeur ajoutée (TVA) operates under the EU VAT Directive. The four rates cover distinct categories:

The franchise en base de TVA exempts small businesses below turnover thresholds from VAT registration — EUR 85,000 for trade and restaurant activities, EUR 37,500 for services (2025 figures). The EU One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) apply to cross-border B2C digital and goods supplies. B2B cross-border services within the EU use autoliquidation (reverse charge), with the French recipient self-assessing TVA. Real-estate transfer tax (droits de mutation) ranges roughly 5–6% by département.

How are cryptoassets taxed in France?

French crypto taxation for individuals turns on an occasional versus habitual characterisation. Occasional disposals — the typical retail-investor case — fall under Article 150 VH bis CGI and are subject to the prélèvement forfaitaire unique (PFU) at 30% (12.8% income tax + 17.2% social levies). Filers may instead elect the progressive bracket schedule — useful for those in the 0% or 11% band.

Habitual or professional trading activity is categorised as bénéfices non commerciaux (BNC) — taxed at progressive PIT rates plus full social levies, which can significantly exceed the PFU rate. Mining is also BNC ordinary income on receipt at fair market value, becoming cost basis for any later disposal. Staking, airdrops, and crypto received as compensation are taxable as ordinary income on receipt.

France introduced a specific declaration obligation on Form 3916-bis for holders of non-French-domiciled crypto accounts. Failure to declare triggers a EUR 750 per-account penalty, or EUR 1,500 if balances exceed EUR 50,000.

What is the treaty network?

France maintains approximately 125 active bilateral double-taxation conventions — the largest network in Europe, tied with Germany. Most treaties follow the OECD Model with French reservations; France typically applies the credit method, with some legacy exemption treaties remaining. The OECD Multilateral Instrument (MLI) is ratified and applies to many French treaties from 2019 onward, including the Principal Purpose Test for treaty benefits.

Inheritance-tax conventions exist separately alongside the income-tax network, covering several jurisdictions. Foreign tax credit relief is generally claimed via the déclaration de revenus for French residents on worldwide income.

Where does France sit in the EU major-economy cohort?

France anchors the EU civil-law major-economy cohort alongside Germany, Italy, and Spain. EU membership means TVA aligns with the EU VAT Directive, and cross-border workers fall under the EU-wide social-security co-ordination framework.

Common pitfalls and traps

Foreigners and businesses operating in France trip on several recurring issues:

When should you talk to a French tax pro?

Some situations are clear enough to handle through impots.gouv.fr. Others benefit from a credentialed expert-comptable or avocat fiscaliste:

• You are moving to or from France mid-year and need to determine residency start/end date under Article 4 B CGI
• You hold substantial corporate participations and face the Article 167 bis CGI exit-tax rules on departure
• You have investment or rental income and want to evaluate the PFU versus progressive-bracket election
• Your real-estate wealth could exceed the EUR 1.3 million IFI threshold
• You are arriving as an expatriate and want to qualify for the régime des impatriés 8-year exemption
• You run a business affected by the CVAE or CFE territorial levies and need to optimise structure
• You received a DGFiP notice of assessment, tax audit letter, or back-tax claim
• You hold non-French bank, broker, or crypto accounts and are unsure whether the 3916 / 3916-bis declaration applies

You can find vetted France practitioners through the directory below.

This page is general information. It is not personal guidance for your specific situation. Tax rules change frequently. Always confirm current figures at impots.gouv.fr or with a registered tax pro before filing.