Relocate.World logo

French impatriate tax regime


Julien Darras


March 21, 2022


07:07 PM

Share this article:

Employees and managers relocating to France to work for a French company may benefit from personal income tax (“PIT”) exemptions of the “impatriate regime”. This article will discuss the benefits, conditions, and more.

Main benefits of the scheme:

✅ Impatriation bonus PIT exemption, which may be assessed at a flat rate of 30% of the total net income.

⚠️ further limitations may apply on the tax free bonus amount;

✅ PIT exemption for the portion of the income linked to the activity carried out outside of France for the employer’s interest;

✅ 50% PIT exemption of the income from foreign sourced dividends, interest, income from life insurance contracts and capital gains;

⚠️ conditions regarding the income payer location apply ;

⚠️ social security contributions (at a current rate of 17,2%) remain applicable on 100% of the income;

✅ 50% PIT exemption on foreign sourced intellectual or industrial property income;

📅 PIT exemptions are applicable for a period of 8 years.

💡 Also:

  • an exemption for 5 years from the French real estate wealth tax (IFI) on the real estate located outside of France;
  • a possible exemption from the registration to the French compulsory social security schemes for basic and supplementary retirement/pension insurance for 3 years, renewable once.

Main conditions of the scheme:

➡️ duties carried out in France via (i) a recruitment from abroad by a French company, or (ii) an intra-group mobility (e.g. from a parent company to its subsidiary);

➡️ not to have been tax domiciled in France during the 5 years preceding the hire;

➡️ file a tax return n°2042, n°2042 C and n°2047 the year following the hire.

Understand More About the France Tax System

Yatax is a French law firm which operates in tax law, advising companies, managers and individuals. The firm provides practical, quantified and innovative solutions meeting client expectations in the context of a demanding and fastly evolving tax environment.

Connect with Julien to assist you with the confirmation of your eligibility to the impatriate tax regime and the assessment of the tax breaks.


Featured Articles

Get Inspired. Stay Informed.

We provide readers with original, practical and high-quality information about relocation....written by the experts.

See all articles

Let's go places together Subscribe to our Newsletter

Join our community of Global Citizens today.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

AboutLeave a Review Terms & ConditionsPrivacy policyContactJoin RelocateCitizen Remote 🏄