Tax expatriation is not a simple change of address, it is a wealth operation that requires rigorous upstream analysis (characterisation under domestic and treaty law, exit tax, unrealised gains, wealth structuring) and meticulous downstream follow-up (return for the last French year, bringing assets into compliance, protection against re-characterisation). The tax stakes can reach several million euros for substantial assets; the exit tax of article 167 bis of the French Tax Code on unrealised gains from significant shareholdings is typically the highest cost, but other mechanisms (real-estate capital-gains tax, social levies, foreign accounts) must also be anticipated. This page summarises the firm's methodology for these operations.
Tax expatriation is a wealth operation whose preparation should span 12 to 24 months before the actual departure. Three main issues structure the analysis: (1) the characterisation of tax residence (domestic law French Tax Code 4 A and 4 B + the target country's bilateral treaty); (2) the exit tax of article 167 bis of the French Tax Code on unrealised gains from significant shareholdings, and more broadly the taxation of unrealised gains; (3) wealth structuring (retained French real estate, foreign accounts, life insurance, prior gifts, etc.).
The financial stakes can be considerable. For an executive holding €800,000 of unrealised gains on unlisted securities, the deferred taxation at the flat rate (12.8% + 18.6% social levies = 31.4%) can reach around €251,000, an amount placed under payment deferral by the exit tax but still due if the securities are sold before the relief period.
The firm structures these operations 360 degrees: tax characterisation, exit tax, capital gains, real estate, foreign accounts, pensions and retirement, interaction with the target country. Our dual France · Switzerland bar admission is a particular asset for expatriations in the France–Switzerland corridor.
Analysis under French domestic law (French Tax Code art. 4 B, home / activity / centre of economic interests) and the applicable bilateral treaty with the target country. Identification of the precise moment of the switch and organisation of the material elements (moving the home, ending French activity, transferring economic interests) to make the change enforceable against the tax authorities.
For taxpayers who have been resident in France for at least 6 of the last 10 years and who hold significant shareholdings (≥ 50% of a company OR shareholdings worth ≥ €800,000), transferring tax domicile out of France triggers the taxation of unrealised gains at the flat rate (12.8% + 18.6% social levies = 31.4%). Automatic payment deferral for transfers within the EU/EEA, and for third States that have concluded both assistance conventions with France (administrative and recovery) and are not listed as NCSTs. For other countries, deferral is conditional on providing guarantees. Relief after 2 years (EU/EEA) or 5 years (others) depending on the case.
Beyond the exit tax, expatriation may be an opportunity to crystallise certain unrealised gains (partial sale before departure to benefit from French income tax at a known rate). For retained French real estate: a later sale from abroad remains subject to French income tax (French Tax Code art. 244 bis A); anticipate the real-estate arbitrage to carry out before or after departure.
Before departure, a full review of the financial assets: reporting of existing foreign accounts (French Tax Code 1649 A), audit of life-insurance policies (French and foreign), crypto positions. Preparation of the last French return, which must split income before and after the change of domicile and flag the exit-tax items. A preventive regularisation of any anomaly is recommended.
Post-expatriation follow-up: French return until the limitation period (3 years) for French-source income, monitoring of the exit-tax deferral and relief (form 2074-ETD), interaction with the target country (local filings, treaty coordination), and building an evidential file of the change of residence to withstand any later re-characterisation by the French authorities.
— Case study
Focus, Departure to Switzerland
The firm structures tax expatriations in project-management mode: phase 1 (pre-expatriation audit and strategy, 4-8 weeks), phase 2 (implementation, wealth restructuring, filings, exit tax, 3-6 months), phase 3 (post-departure follow-up, last-year French return, target-country coordination, exit-tax deferral monitoring, 12-36 months depending on the setup).
Our dual France · Switzerland bar admission is a particular asset for expatriations in the France–Switzerland corridor: direct coordination with Swiss counsel on cantonal tax residence, the Swiss lump-sum regime where applicable, pensions and Swiss wealth structures.
12 to 24 months ideally. Several mechanisms require anticipation: upstream wealth structuring (contribution followed by a sale, known as apport-cession, prior gifts, holding restructurings), exit tax (calculation, filing, deferral), interaction with the target country (tax residence, pensions, real estate). Hasty preparation exposes you to avoidable costs and re-characterisation risks.
The exit tax of article 167 bis of the French Tax Code is the taxation of unrealised gains on significant shareholdings held by a taxpayer who transfers their tax domicile out of France. Conditions: having been resident in France for at least 6 of the last 10 years + holding significant shareholdings (≥ 50% of a company OR shareholdings worth ≥ €800,000). The rate is the flat rate (12.8% + 18.6% social levies = 31.4%). An automatic payment deferral applies to transfers within the EU/EEA and to certain third States that have concluded both assistance conventions with France and are not listed as NCSTs.
Deferral as of right for the EU/EEA, and for certain third States. For transfers to an EU member State (including Italy) or the EEA (Norway, Iceland, Liechtenstein), the deferral is automatically granted. For third States outside the EU/EEA, the deferral is also granted as of right where the target country has concluded both assistance conventions with France (administrative, on the exchange of information, and on recovery) and is not listed as an NCST. For other countries (United States, UAE, etc.), the deferral is conditional and requires bank guarantees. The economic advantage of deferral vs immediate payment must be assessed case by case.
The relief applies if the taxpayer keeps their securities for a certain period after departure: 2 years in principle (transfers to the EU/EEA and third States qualifying for automatic deferral), extended to 5 years where the overall value of the unrealised gains exceeds the €2,570,000 threshold. Beyond the applicable period, the exit tax is definitively cleared. If the securities are sold before the period, the initial taxation becomes due (subject to partial relief under the precise terms of article 167 bis).
Retained French real estate remains subject to French taxation, even for a non-resident: property income (taxed at the 20% minimum rate or the treaty rate), IFI real-estate wealth tax if French real-estate assets ≥ €1.3M, real-estate capital gains on sale (French Tax Code art. 244 bis A, 19% rate + social levies depending on residence). The choice between selling before or after departure depends on the tax timetable and the target country.
Yes. The last French return for the year of departure must split income before and after the change of domicile and flag the transfer. The exit-tax items are reported on form 2074-ETD. The taxpayer must keep, for several years, an evidential file of the effective change of residence (home, activity, centre of interests) to withstand any re-characterisation by the authorities.
The 2025 Finance Act explicitly codified the primacy of treaty law: a person recognised as resident of another State under a tax treaty cannot be regarded as tax-resident in France under domestic law, even if one of the art. 4 B tests is met. This codification secures expatriations to countries linked to France by a bilateral treaty; the treaty analysis prevails over domestic law.
Tax regime of artists and sportspeople domiciled outside France: withholding French Tax Code art. 182 A bis, OECD treaties art. 17, art. 100 bis averaging.
Voir la page Non-resident hubGeneral framework after expatriation: minimum rate, social levies, treaties.
Voir la page WealthTax-domicile tests (French Tax Code art. 4 A and 4 B) and treaty primacy.
Voir la page ItalyA specific case of expatriation to Italy under the lump-sum regime.
Voir la page Foreign accountsA reporting obligation to anticipate before and after departure.
Voir la pageA confidential initial consultation to structure your departure, anticipate the exit tax and secure your change of tax residence.
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