🇫🇷 Taxes · France
Taxes in France
Who becomes a French tax resident, how income tax is calculated on the progressive scale and what the family quotient gives you.
French tax residency is determined by place of residence, work or the center of economic interests. Residents pay personal income tax on their worldwide income, non-residents only on income earned in France.
Who counts as a tax resident
An individual is treated as a French resident if at least one of the following applies:
- The main home of the person or of the family is in France
- Professional activity is carried out in France
- France is the center of economic interests
Directors of companies registered in France with turnover above 250 million euros are by default treated as carrying out their professional activity in France unless they prove otherwise.
If the laws of two countries both treat a person as a resident, the tax treaty determines the country of residence by descending criteria: permanent home, center of vital interests, habitual abode, nationality, and in disputed cases a decision by the tax authorities.
Personal income tax
Residents pay personal income tax on their worldwide income unless a double tax treaty provides otherwise. Non-residents pay tax only on income earned in France.
Family quotient
Total taxable income is divided into shares according to the composition of the family: one share for a single person, two for a married couple with no children, half a share for each of the first two children and a full share for the third child and every child after that. For example, the income of a couple with three children is divided into four shares. The saving from this split is capped and depends on the family's net taxable income.
Rates
The scale is progressive - from 0% to 45%. On top of that there is a surtax of 3% on the part of income above 250,000 euros for a single person and 500,000 euros for a married couple, and 4% on income above 500,000 euros for a single person and 1 million euros for a couple.
The exact tax burden depends on your status and your sources of income - we will go through it on a free consultation.
FAQ
Who counts as a tax resident of France?
What is the income tax scale in France?
What is the family quotient?
Do non-residents pay tax on income from abroad?
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