The exit tax (French Tax Code art. 167 bis) taxes unrealised gains on securities held at the time of transferring one's tax residence out of France. Three cumulative conditions: French tax residence for ≥ 6 of the last 10 years, securities worth ≥ €800,000 (or holding ≥ 50% of a company's profits), and an effective transfer of domicile. Automatic payment deferral for EU/EEA transfers since 2019, with full relief after 2 or 5 years depending on the value of the securities. Forms 2074-ETD (departure) + 2074-ETSL (annual follow-up).
The exit tax (French Tax Code art. 167 bis) taxes the unrealised gains on securities held by a taxpayer at the moment they transfer their tax residence out of France. Its anti-abuse purpose is to prevent a taxpayer from leaving France just before selling their securities in order to escape French taxation.
Three cumulative conditions: (1) French tax residence for ≥ 6 of the 10 years preceding departure, (2) securities with an overall value ≥ €800,000 OR direct/indirect holding of ≥ 50% of the profits of a company, (3) an effective transfer of tax domicile out of France.
Since 2019, an automatic payment deferral applies to transfers to the EU/EEA and to certain States that have signed an assistance convention. Full relief after 2 years (securities < €2,570,000) or 5 years (securities ≥ €2,570,000) if no disposal occurs in the meantime. For other destinations (Switzerland, US), deferral is available on request with a guarantee deposit.
Three conditions must be met simultaneously for the exit tax to apply to the transfer of domicile.
Automatic or on-request deferral depending on the destination of the transfer.
The deferred tax is fully relieved after a waiting period without any disposal.
Two forms to know: 2074-ETD on departure, 2074-ETSL for annual follow-up.
Switzerland outside the EU: deferral on request against a guarantee. Concrete mechanics on €5M of assets.
Consider a 52-year-old French entrepreneur transferring their domicile to Switzerland in 2026. The assets consist entirely of shares in their French company (value €5M, acquisition cost €200K). Unrealised gain: €4.8M.
Unrealised gain: €4,800,000. Applying the flat tax 30% (income tax 12.8% + social levies 17.2%) → gross exit tax = €1,440,000. No holding-period allowance applies under the flat tax (unless the taxpayer elects for the progressive scale + enhanced allowance).
As Switzerland is outside the EU, deferral is not automatic. A request must be made together with a guarantee deposit (bank guarantee, mortgage, or other guarantees accepted by the authorities). Annual cost of the bank guarantee: ~0.5% to 1% of the guaranteed amount, i.e. €7,200 to €14,400 per year during the deferral period.
Securities > €2,570,000 → relief period of 5 years. If the entrepreneur does not sell their shares before 2031, the exit tax is fully relieved. Total cost to bear: only the guarantee fees over 5 years (~€50K) instead of €1,440,000 of tax.
The France–Switzerland tax treaty of 1966 (revised in 2014) allocates the right to tax securities gains to the seller's country of residence. A disposal after 5 years of Swiss residence would be taxed under Swiss law (generally more favourable). Note: Switzerland may levy wealth tax on these securities.
Maître Jonathan Bensaid, founding partner of the firm, admitted to the Paris & Geneva Bars, advises entrepreneurs, executives and investors in preparing their expatriation: exit-tax audit, structuring of the guarantee, treaty coordination, deferral follow-up over 2-5 years, and litigation safeguards in the event of a challenge.
You are affected if you meet the 3 cumulative conditions: (1) French residence for ≥ 6 of the last 10 years, (2) securities held with an overall value ≥ €800,000 OR a holding of ≥ 50% of a company's profits, (3) an effective transfer of your tax domicile out of France. Note: only securities are covered (not real estate, which follows its own regime).
The deferral is automatic for transfers to EU / EEA States and to countries that have signed an administrative-assistance and recovery convention with France. For other destinations (Switzerland, United States, UAE, etc.), the deferral is on request and requires providing a guarantee (bank guarantee, mortgage, etc.).
If you do not sell your securities during the deferral period, the exit tax is fully relieved after: 2 years for securities worth < €2,570,000, 5 years for securities worth ≥ €2,570,000. Any disposal, redemption, cancellation or liquidation during that period triggers the immediate liability of the deferred tax.
On departure, filing of form 2074-ETD (initial return of unrealised gains). During the deferral period, annual filing of form 2074-ETSL (simplified follow-up) as long as no triggering event has occurred. These forms must be attached to the income tax return for the year of departure and the following years.
If you transfer your tax domicile back to France before the relief, the exit tax is cancelled on the securities still held at that date — this is the return-relief mechanism. The unrealised gain is then "frozen" and will revert to its ordinary regime in the event of a later disposal.
Related resources on expatriation, non-resident taxation and France–Switzerland mobility.
Residence tests, specific scale, bilateral treaties, obligations.
Voir la page Related articleForm 3916, penalties, CRS exchange, regularisation.
Voir la page Area of practicePersonalised diagnosis, treaty coordination, multi-year safeguarding.
Voir la page Lead counselPartner in charge of expatriation and international-mobility matters.
Voir la pageA confidential initial consultation. Exit-tax diagnosis, structuring of the guarantee, treaty coordination, disposal plan optimised over 5+ years.
© BENSAID Avocats — The information published on this site does not constitute legal advice. Sources: French Tax Code art. 167 bis (exit tax), 244 bis B (non-residents' securities gains); Amending Finance Act 2018 (reform of the automatic EU/EEA deferral); France–Switzerland tax treaty of 9 Sept. 1966 (revised 2014); OECD model tax convention; forms 2074-ETD and 2074-ETSL. Editorial update: 9 April 2026.
