New Special Expatriate Income Tax Regime for those relocating to France

If you have plans to relocate to France, you may be eligible for very advantageous tax arrangements, subject to certain conditions.

The expatriate tax regime applies to individuals who were not residents of France for tax purposes during the five calendar years prior to their taking up their duties in a company based in France.

The expatriate regime provides entitlement to income tax exemptions on:

  • Additional compensation directly linked to the exercise of a professional activity in France (expatriate bonus) ;
  • The share of compensation relating to the foreign activity carried out in the interests of the employer ;
  • 50% of income from investments from foreign sources (payment of which is made by a person based outside France in a State or territory which has concluded a tax treaty with France that contains an administrative assistance clause to combat tax evasion and avoidance) ;
  • 50 % of certain intellectual and industrial property rights from foreign sources (payment of which is made by a person based outside France in a State or territory which has concluded a tax treaty with France that contains an administrative assistance clause to combat tax evasion and avoidance) ;
  • 50 % of capital gains on the sale of securities and ownership interests from foreign sources.

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