Relocation tax guideMoving to France: Taxes for Expats 2026
France taxes residents on worldwide income at rates up to 45%, with a high-income surtax and social charges on top, a 30% flat tax on investment income, and inheritance tax up to 60%. Employees recruited from abroad can use the impatriate regime to exempt part of their pay and certain foreign income for up to eight years. France also levies a wealth tax on real estate (IFI).
France pairs a heavy headline tax burden - including social charges and one of the world's highest inheritance taxes - with a generous regime for inbound workers. It also taxes large property holdings through a dedicated wealth tax. This guide explains the impatriate regime, the real-estate wealth tax, and how French residency is decided.
France: key tax rates
| Tax | Rate | Source |
|---|---|---|
| Corporate income tax | 25%Standard rate; an exceptional surtax applies to large companies (raising the effective rate for 2025) | PwC Worldwide Tax Summariesas of 2026-04-24 |
| Top personal income tax | 45%Top income-tax bracket; an exceptional high-income surtax (CEHR, up to 4%) applies in addition, plus social charges on most income | PwC Worldwide Tax Summariesas of 2026-04-24 |
| VAT / GST (standard) | 20%Standard VAT rate | PwC Worldwide Tax Summariesas of 2026-04-24 |
| Capital gains | 30%Flat tax (PFU) = 12.8% income tax + 17.2% social charges; the 2026 Finance Act adds a ~1.4% social surcharge (combined ~31.4%); a high-income surtax (CEHR, up to 4%) may also apply | PwC Worldwide Tax Summariesas of 2026-04-24 |
| Inheritance / wealth tax | Up to 60%Inheritance/gift tax headline rate; varies by relationship and amount | PwC Worldwide Tax Summariesas of 2026-04-24 |
The Impatriate regime (regime des impatries) regime
For employees and managers recruited from abroad to take up a role in France.
The impatriate regime exempts the 'impatriation bonus' - the extra pay for moving to France - from income tax, and exempts a portion (broadly 50%) of certain foreign-source investment income and gains. It runs for up to eight years and requires that the person was not French tax resident in the five calendar years before taking up the role.
- The impatriation bonus (the premium for relocating) is exempt from French income tax.
- Broadly 50% of certain foreign-source investment income and capital gains can be exempt.
- Available for up to 8 years from taking up the French role.
- Requires not having been French tax resident in the 5 calendar years before arrival.
Source: PwC Worldwide Tax Summaries - France (as of 2026-06-24).
| Item | Under the impatriate regime | Standard resident rules |
|---|---|---|
| Impatriation bonus (relocation premium) | Exempt from income tax | Fully taxable |
| Certain foreign investment income / gains | Broadly 50% exempt | Taxed (worldwide) |
| Duration | Up to 8 years | No time limit |
Source: PwC Worldwide Tax Summaries - France (as of 2026-06-24).
When you become a tax resident
You are generally a French tax resident if France is your home (foyer) or principal place of stay, or if you carry on your main professional activity or have the centre of your economic interests in France. Meeting any one of these makes you resident; a stay over 183 days typically satisfies the principal-place-of-stay test. Residents are taxed on worldwide income.
Source: PwC Worldwide Tax Summaries - France (Residence) (as of 2026-06-24).
The impatriate regime
France actively courts inbound talent through the impatriate regime. The relocation premium an employer pays to bring you to France is exempt from income tax, and around half of certain foreign-source investment income and gains can also be exempt. The relief lasts up to eight years, which makes a French posting far less costly than the headline 45% rate suggests.
The key gate is prior non-residence: you must not have been a French tax resident in the five years before taking up the role. The regime is aimed at employees and company managers, not at the independently wealthy moving on their own.
Wealth tax on real estate (IFI)
France abolished its broad wealth tax but kept a wealth tax on real estate - the impot sur la fortune immobiliere (IFI) - which applies to net property holdings above a threshold. Financial assets are outside it, but anyone holding substantial real estate in France (or, for residents, worldwide) should factor IFI in alongside income tax, social charges, and the high inheritance tax.
Before you move: what to weigh
- The impatriate regime needs 5 years of prior non-residence and lasts up to 8 years - it is for inbound employees, not independent movers.
- Social charges apply on top of income tax, and a high-income surtax (CEHR) can add more.
- The IFI real-estate wealth tax and inheritance tax (up to 60%) are significant for wealthier movers.
- US citizens remain taxable by the US on worldwide income; the France-US treaty and foreign-tax credits then apply.
Get this right for your situation
Cross-border tax turns on your specific facts. Find a tax professional who works with people moving to France.
What is France's impatriate regime?
A relief for employees and managers recruited from abroad: the relocation premium is exempt from income tax and around half of certain foreign investment income and gains can be exempt, for up to eight years. It requires not having been French tax resident in the prior five years. It targets inbound workers, not independent movers.
Does France have a wealth tax?
France abolished its general wealth tax but kept one on real estate - the IFI - charged on net property holdings above a threshold. Financial assets are excluded. Combined with social charges and inheritance tax up to 60%, property-rich movers should plan beyond the headline income-tax rate.
When are you a French tax resident?
When France is your home or main place of stay, or your main professional activity or economic interests are in France - any one is enough. A stay over 183 days usually meets the place-of-stay test. Residents are taxed on worldwide income; treaty rules can change the outcome.
Informational only, not tax advice. Cross-border tax depends on your personal circumstances and changes often; figures are dated to their sources. Confirm your position with a qualified professional before moving or filing.
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in France as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.