TLDR — If you are tax resident in France, you must declare foreign income according to its nature and the rules applicable to it. Income from foreign securities received in a private capacity is, in principle, subject to income tax. Exempt income taken into account when calculating the effective tax rate must also be declared under the prescribed conditions.
The principle if you are tax resident in France
You must declare income and profits subject to income tax, as well as the information required to calculate that tax. When you are tax resident in France and receive, in a private capacity, income from securities issued outside France, that income and assimilated income are, in principle, subject to income tax.
This rule concerns income from foreign securities and assimilated income. It does not automatically allow the same treatment to be applied to all categories of income received abroad.
Forms and exempt income
Forms no. 2042, 2042-C and 2042-NR are available on the www.impots.gouv.fr website, on the “Form search” page.
You must spontaneously declare exempt income that must be taken into account when calculating the “effective tax rate”. This obligation also applies to elements of total income exempt under the law or an international convention when they must be taken into account to calculate the tax applicable to your other income.
You must enter the relevant amounts on the line provided for this purpose in supplementary return no. 2042-C, corresponding to CERFA form no. 11222. This rule applies to exempt income taken into account when calculating the “effective tax rate”; it does not automatically apply to every sum received from abroad.
You are advised to attach a note indicating the nature and gross amount of the exempt income, before deducting expenses and foreign tax, as well as the country of origin, the corresponding expenses, and the nature and amount of tax paid abroad.
Specific situations provided for by the legislation
If you transfer your tax residence from France abroad, specific rules apply to income for the year of departure. In the year following your departure, you must file the returns required for the income concerned: a return no. 2042, possibly accompanied by no. 2042-C, and, where applicable, a return no. 2042-NR for French-source income received after your departure.
If you hold an account abroad that is subject to a reporting obligation and that account has not been declared, the sums, securities or assets transferred abroad or received from abroad through it are, unless proven otherwise, considered taxable income. A comparable rule applies to payments made through undeclared contracts, under the conditions provided for by law.
For income from foreign securities received in a PEA or PEA-PME, the reporting procedures depend in particular on the nature of the securities and on whether a tax treaty with France exists. The information concerning treaty tax credits relates to income from unlisted securities in the designated sections of the corresponding forms.
What you need to check before filing
Informational content, not personalized tax advice.