TLDR: The 183-day rule for determining tax residency has several exceptions and special cases. These include preferential regimes for inpatriates, exemptions for public and private pensions, and special treatments for students and artists. It is also important to consider how physical presence days are calculated and how stays spanning two years may affect tax residency determination.
Calculating the 183 days: what counts and what doesn’t
The count of physical presence days includes all days, with no exceptions for:
- Arrival and departure days (even a fraction of a day).
- Weekends, holidays, and vacations (before, during, or after work activity).
- Brief interruptions, such as training periods, strikes, or furloughs.
These rules apply unless the interruptions definitively end the temporary stay in the country.
Stays spanning two years
If a stay extends over two calendar years (e.g., Year N and Year N+1), the fraction of days for each year must be considered separately to assess whether the 183-day threshold is exceeded.
Exemptions for pensions and specific income
Public pensions: the case of Swiss residents
French public pensions received by Swiss residents with French citizenship are taxable exclusively in France, even if the beneficiary resides in Switzerland. However, Switzerland may consider this income for the progressive calculation of tax on other locally taxable income, without directly taxing it.
Private pensions: residence certificate to avoid withholding tax
A Botswana resident receiving private pensions from a French source can avoid withholding tax by presenting the payer with a residence certificate issued by the Botswana tax authorities. If withholding tax has already been applied, a refund can be requested from the Service des impôts des particuliers non-résidents (Noisy-le-Grand), attaching:
- Proof of residence in Botswana.
- Evidence of taxation in the country (e.g., a copy of the tax assessment notice or a certificate from the local administration).
Preferential regimes for inpatriates and students
Inpatriates: temporary exemptions (Art. 81 B and 155 B of the French Tax Code)
Employees and executives called from abroad to work in France for a limited period can benefit from two preferential regimes, provided they have not been tax-resident in France in the previous 5 years:
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Partial exemption (Art. 81 B):
- Excludes from taxation remuneration elements directly linked to the inpatriation (e.g., relocation allowances).
- Duration: until December 31 of the fifth year following the start of employment.
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30% exemption (Art. 155 B):
- Allows exempting 30% of the remuneration (or the portion directly linked to the inpatriation).
- Duration: until December 31 of the eighth year following the start of employment.
Students and interns: tax benefits for scholarship holders
Botswanan students who maintain tax residency in Botswana during their stay in France are entitled to the same tax benefits as French residents, not only for scholarships but also for salaries earned in France alongside their studies. This treatment is extended provided the student does not acquire tax residency in France.