France

{"ftc_utility":"high","fbar_trigger_notes":"US expats in France are required to maintain French bank accounts for most practical and legal purposes (salary payment, utility bills, housing deposits). French accounts held by US persons almost certainly exceed the $10,000 FBAR threshold triggering FinCEN Form 114 filing. France participates in FATCA, and French financial institutions report US person accounts to French tax authorities who share data with the IRS. FATCA Form 8938 thresholds for foreign residents are $200,000 single / $400,000 married at year-end.","ftc_utility_reason":"France is a high-tax jurisdiction with income tax rates up to 45% plus social levies (CSG/CRDS) of 9.1% on earned income. French income tax paid generally exceeds US tax liability on the same income, making the Foreign Tax Credit (FTC) on Form 1116 highly effective at eliminating US tax on French-source income. However, the characterization of French social levies as creditable taxes has been litigated - the IRS and courts have at times disallowed CSG/CRDS credits. FEIE and FTC cannot both apply to the same income. For high earners in France, the FTC approach is often more beneficial than the FEIE because it shelters income above the FEIE exclusion limit (approximately $126,500 for 2024).","presence_day_count_notes":"France does not impose strict visa-based day limits on legal residents, so the 330-day physical presence test is generally achievable for a US citizen legally residing in France. However, most US expats in France establish long-term residence (carte de sejour) and qualify more naturally under the bona fide residence test. The 330-day count is complicated if the individual travels extensively back to the US.","typical_qualifying_method":"bona_fide_residence","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":35000,"local_tax_rate_on_earned_income":0.3,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Private and government pension income (including French pension income) received by French tax residents is subject to progressive income tax rates (0% to 45%) after a 10% deduction capped at approximately EUR 4,321 per year. CSG at 8.3% (or reduced rates for lower-income pensioners) and CRDS at 0.5% also apply to pension income. Government pensions are typically taxable only in the source country under the treaty, so US government pensions paid to French residents are taxable only in the US. Private pensions from US sources are generally taxable in France as the residence country.","tax_rate":null,"locally_taxed":true},"social_security":{"notes":"Under Article 18 of the US-France tax treaty, US Social Security benefits paid to a French resident are taxable only in the US. France does not tax US Social Security benefits received by French residents. The US taxes up to 85% of Social Security benefits under domestic law; the foreign tax credit mechanism helps but the savings clause means US citizens pay US tax on this income regardless of residence.","locally_taxed":false,"treaty_protection":true},"roth_distributions":{"notes":"France does not formally recognize the tax-exempt status of Roth IRAs. Roth distributions may be treated as pension income by French authorities and taxed at progressive rates. The treaty pension article does not explicitly carve out Roth accounts as tax-exempt. US expats in France face practical uncertainty - French tax authorities have not issued definitive guidance exempting Roth distributions. Professional advice is recommended. The US does not tax qualified Roth distributions under the savings clause, so the Roth advantage is preserved on the US side but not necessarily on the French side.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The 1994 US-France tax treaty (as amended by the 2009 protocol) generally treats US 401(k) and IRA distributions as pension income taxable only in the country of residence. For a US citizen resident in France, this means France has primary taxing rights on distributions. Distributions are subject to French progressive income tax rates (up to 45%) after a 10% pension deduction (capped at approximately EUR 4,321 per year for 2024). The treaty does not eliminate US taxation for US citizens due to the savings clause - the US continues to tax US citizens on worldwide income including distributions. A foreign tax credit can typically offset double taxation. French social levies (CSG/CRDS, 9.1% on pension income) may also apply but treaty provisions and EU rules may limit this for certain taxpayers.","tax_rate":null,"locally_taxed":true,"treaty_protection":true}}

{"rate":0.3,"notes":"Most individual capital gains on financial assets (shares, bonds) are subject to a flat levy (prelevement forfaitaire unique, PFU) of 30%, which includes 12.8% income tax and 17.2% social levies. Real property gains use a separate schedule with holding period relief.","details":{"tax_type":"Capital Gains Tax","country_name":"France","country_iso_code":"FRA","source_references":["PwC Worldwide Tax Summaries - France","Direction Generale des Finances Publiques (DGFiP)","Code General des Impots"],"last_verified_date":"2026-06-03","general_description":"France taxes capital gains through the Prelevement Forfaitaire Unique (PFU or flat tax) of 30% for most financial assets. This 30% comprises 12.8% income tax and 17.2% social contributions (CSG/CRDS). Taxpayers can elect to use the progressive income tax schedule instead if that is more favorable. Real estate capital gains are taxed at 19% income tax plus 17.2% social levies (total 36.2%) with abatements for holding periods beyond 5 years, and gains are fully exempt after 22 years for income tax (30 years for social levies). US expats classified as French tax residents owe these taxes on worldwide gains.","corporate_capital_gains":{"rate":0.25,"notes":"Participation exemption applies to shares held for at least 2 years where the holding represents at least 5% of share capital.","tax_treatment":"Corporate capital gains are generally taxed as ordinary corporate income at the standard CIT rate of 25%. Long-term gains on qualifying shareholdings (participation exemption) may be 88% exempt, resulting in an effective rate of approximately 3% on the taxable portion."},"individual_capital_gains":{"rate":0.3,"tax_treatment":"Flat 30% PFU applies to financial asset gains (12.8% income tax + 17.2% social levies). Taxpayer may elect progressive income tax schedule if more favorable. Real property gains taxed at 36.2% before holding-period abatements.","pfu_components":{"income_tax_component":0.128,"social_levies_component":0.172},"real_property_rate":0.362,"real_property_notes":"19% income tax + 17.2% social levies on real property gains before abatements. Holding-period reduction starts after year 5. Full income tax exemption after 22 years; full social levy exemption after 30 years."}}}

{"notes":"Dividends received by French tax residents are subject to the PFU at 30% (12.8% income tax + 17.2% social levies). Taxpayers may elect the progressive income tax schedule with a 40% rebate on the gross dividend amount if that produces a lower bill. Non-residents face a 12.8% withholding tax on French-source dividends (reduced under applicable tax treaties - the US-France treaty generally reduces this to 15% or 5% for qualifying corporate holders).","rates":[{"rate":0.3,"type":"flat","notes":"PFU rate for French tax residents: 12.8% income tax + 17.2% social levies (CSG/CRDS). Resident taxpayers may opt for progressive rates with a 40% dividend rebate instead."},{"rate":0.128,"type":"withholding","notes":"Standard domestic withholding rate for non-resident individuals on French-source dividends. Reduced to 15% under the US-France tax treaty for portfolio dividends and 5% for qualifying corporate shareholders holding at least 10% of share capital."},{"rate":0.172,"type":"flat","notes":"Social levies (CSG/CRDS) component applicable only to French tax residents. Not applicable to non-residents."}]}