TLDR: Living abroad does not automatically exclude the obligation to pay taxes in France. If you are no longer a tax resident in France, you are only taxed on income from French sources, unless otherwise provided by international tax treaties. Taxpayers with ties to France must declare local income according to specific rules.
Who is considered a tax resident in France
Tax domicile determines the scope of taxation. You are considered a tax resident in France—and therefore taxed on all income, regardless of where it is earned—if you meet at least one of the following criteria:
- Your household (spouse and minor children) resides in France.
- Your main residence is in France for more than half of the year (even non-consecutively).
- Your primary professional activity is carried out in France, unless it is secondary.
- The center of your economic interests (investments, business headquarters) is located in France.
French state officials and agents on missions abroad are automatically considered tax residents in France, unless they fall under specific exceptions.
Taxation of non-residents: income from French sources
If you are not a tax resident in France, you are only taxed on income from French sources, including:
- Property income (rental income, capital gains from sales).
- Income from employment carried out in France.
- Pensions from French sources.
- Dividends and interest paid by French companies or financial institutions.
Exemptions and preferential regimes
Some categories of taxpayers may benefit from total or partial exemptions:
- Employees posted abroad: Income earned abroad is fully exempt in France if you can prove that such income was taxed in the foreign country with a tax at least equal to two-thirds of what would have been due in France on the same taxable base.
- French officials abroad: They may be exempt from declaring capital gains on property in France if the deed of transfer explicitly specifies the nature and basis of the exemption.
- New residents and international conventions: Tax treaties can modify the general rules, for example for foreign citizens who become residents in France.
Income excluded from French taxation for non-residents
Not all income related to France is taxable. In particular, rental income from properties in France is not considered remuneration for services provided or used in French territory. Capital gains on property realized by non-residents may be exempt if the conditions for officials are met or based on international conventions.
Special cases: IFI and real estate assets
Taxpayers who transfer their tax domicile abroad remain subject to the IFI (wealth tax on real estate) in France for the 5 years following the transfer, but only on real estate assets located in France.