Approximately 2.5 million French citizens live abroad, with many retirees among them—a number that has doubled over the past decade. They often relocate for better climates or lower living costs. However, navigating French tax obligations is crucial. It hinges on whether your tax residence is in France or your new host country. Here's a clear guide to the required steps based on your situation.
French nationals who relocate abroad and establish their tax residence outside France must follow specific procedures with French tax authorities in the year of departure and beyond.
In the departure year, file your standard income tax return for the prior year's income, as you were still domiciled in France.
The following year, declare income from January 1st to your departure date using form 2042. Additionally, report any French-source income taxable in France from your departure date to December 31 using the "Declaration of income - Departure abroad or return to France (form no. 2042-NR)". Include your new foreign address and departure date on both. Submit by mail to your previous tax office or online via your personal space on impots.gouv.fr.
Even after settling abroad, you'll continue paying French taxes on French-sourced income, such as professional earnings, rental income, pensions, or annuities.
As non-residents, you lose access to tax reductions and credits for French residents. Taxation follows a progressive scale with minimum rates: 20% on income up to €25,710 and 30% above.
Some French citizens abroad can keep their tax residence in France.
In such cases, continue filing and paying income tax in France as a resident household.
Expats whose tax residence shifts abroad remain liable for certain taxes during their stay.
You'll owe real estate wealth tax (IFI) on French property over €1.3 million, subject to international treaties.
Local taxes on French real estate persist, including property tax, housing tax, and vacant housing tax.
