TLDR: Tax residency in France is determined by Article 4 B of the Code Général des Impôts (CGI) and international tax treaties. If you meet at least one of the criteria (domicile, primary professional activity, or center of economic interests in France), you are considered a French tax resident, unless an international treaty assigns residency to another country. French citizens abroad may qualify for specific exceptions.
Tax residency criteria under French domestic law
In France, tax residency is governed by Article 4 B of the CGI and applies to individuals who meet at least one of the following criteria:
- Domicile or primary place of residence in France.
- Primary professional activity carried out in France, unless proven to be secondary.
- Center of economic interests in France, meaning the location of your main sources of income, investments, or financial activities.
Dual residency: resolving conflicts with tax treaties
If a person is considered a tax resident in both France and another country, residency is determined by applying the hierarchical criteria set out in double taxation treaties. The order of priority is as follows:
- Permanent home (stable and available dwelling in one of the two countries).
- Center of vital interests (stronger personal and economic ties).
- Habitual abode.
- Nationality.
- Mutual agreement between the competent authorities of the two countries if uncertainty persists.
Exceptions for French citizens abroad
French citizens who transfer their tax domicile abroad may avoid taxation in France on all income if they prove they are subject in the other country to a personal income tax on all income amounting to at least two-thirds of what they would have paid in France. Additionally, for 3 years following the transfer of their tax domicile abroad, French citizens are not subject to French tax if the move is for professional reasons and they had been continuously domiciled in France for the 4 years prior to the transfer.
Precedence of tax treaties over domestic law
International tax treaties take precedence over French domestic rules. This means that if a treaty assigns tax residency to another country, the taxpayer is not considered a French resident, even if they meet the criteria of Article 4 B of the CGI.