Complete guide · Non-residents — French Tax Code art. 4 B & 197 A

Taxation of non-residents in France — 2026 guide

French taxation of non-residents rests on the characterisation of tax residence (French Tax Code art. 4 B), a specific taxation scale (minimum rate of 20% up to €28,797, 30% above — French Tax Code art. 197 A), rules specific to each income category (property income, salaries, dividends, real-estate capital gains) and the interaction with more than 120 bilateral tax treaties. An operational guide for expatriates, foreign investors and part-year residents.

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Analysis by Maître Jonathan Bensaid · Tax lawyer · Paris & Geneva · 9 April 2026
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The essentials in 30 seconds

A person is not domiciled in France for tax purposes (French Tax Code art. 4 B) if they meet none of the criteria: home or main place of stay in France, main professional activity carried out in France, centre of economic interests in France. Bilateral tax treaties may adjust these criteria in the event of dual residence.

Non-residents remain taxable on French-source income: property income, salaries from activity carried out in France, pensions of French source (subject to treaties), investment income, real-estate capital gains (flat 19% levy + social levies).

Specific scale (French Tax Code art. 197 A): minimum rate of 20% up to €28,797 of net income (2025 income), 30% above. Mandatory filing with the SIPNR in Noisy-le-Grand, forms 2042 + 2042-NR.

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Characterisation, taxable income, rates and obligations

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1. Characterisation of tax residence

Three alternative criteria (French Tax Code art. 4 B) — a single one suffices to establish residence in France.

  • Home or main place of stay — the family's habitual place of living
  • Main professional activity — carried out in France on a principal basis
  • Centre of economic interests — investments, income sources, wealth management
  • Bilateral treaties resolve dual-residence conflicts (cascade: permanent home → centre of interests → habitual abode → nationality)
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2. Income taxable in France

All French-source income — regardless of the taxpayer's residence.

  • Property income — real estate located in France
  • Salaries — activity physically carried out in France
  • Retirement pensions — subject to bilateral treaties
  • Dividends & interest — withholding rate varying by treaty
  • Real-estate capital gains — 19% + social levies (French Tax Code art. 244 bis A)
  • Substantial shareholdings (≥ 25%) in a French company
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3. Specific tax rates

The non-resident scale (French Tax Code art. 197 A) is less favourable than the standard progressive scale.

  • 20% — up to €28,797 of net income (2025 income)
  • 30% — above the threshold
  • Dividends — flat 12.8% levy (subject to treaty)
  • Interest — 0% to 12.8% depending on the country of residence
  • Micro-foncier regime — 30% allowance if gross income < €15,000
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4. Reporting obligations

Annual return filed with the non-residents' individual tax office (SIPNR).

  • Forms 2042 + 2042-NR — return of French income
  • SIPNR Noisy-le-Grand — competent office
  • Online filing — mandatory since 2019
  • Form 1418 — occupancy of premises (real estate)
  • IFI — if French real-estate wealth > €1.3m
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Tax treaties & elimination of double taxation

More than 120 bilateral treaties potentially applicable — each country has its own specificities.

Two main methods of elimination

Bilateral tax treaties allocate taxing rights between France and the country of residence. Two main methods of eliminating double taxation apply, depending on the treaty concerned.

Methods & specificities

The exemption method

The income is exempt in one of the two States (usually the country of residence) and taxed exclusively in the other. It often concerns property income (taxed where the property is located).

The tax-credit method

The tax paid in the source country is creditable against the tax due in the country of residence (up to the corresponding French tax). It often concerns dividends, interest and royalties.

Mandatory document — tax-residence certificate

To benefit from reduced treaty rates (withholding on dividends, interest), a tax-residence certificate issued by the authorities of the country of residence is required. Without this document, the French domestic rate applies (often higher).

Frequent special cases

Switzerland, Belgium, the United Kingdom, the United States, the Emirates: structuring treaties for French expatriates. Each treaty has its own rules on pensions, capital gains and dividends — a case-by-case analysis is essential. Attention must be paid to the tie-breaker rules in the event of dual residence (OECD-model cascade).

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Lead counsel — Maître Jonathan Bensaid

Maître Jonathan Bensaid, founding lawyer of the firm, admitted to the Paris & Geneva Bars, advises expatriates, foreign investors and part-year residents on the characterisation of tax residence, reporting obligations, treaty optimisation and litigation defence before the French administration and the administrative courts.

  • French Tax Code art. 4 B
  • French Tax Code art. 197 A
  • French Tax Code art. 244 bis A
  • Bilateral treaties
  • SIPNR
  • Paris & Geneva Bars
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Q&A — non-residents' frequent questions

How do I know whether I am a French tax resident or not?

You must analyse the 3 alternative criteria of article 4 B of the French Tax Code: home or main place of stay in France, main professional activity in France, centre of economic interests in France. A single criterion met is enough. In the event of dual residence with another country, the applicable bilateral tax treaty resolves the matter through a cascade (permanent home → centre of interests → habitual abode → nationality).

What is the minimum tax rate for a non-resident?

20% up to €28,797 of net taxable income (2025 income), then 30% above (French Tax Code art. 197 A). This minimum rate may be set aside by showing that applying the standard progressive scale to all worldwide income would be more favourable (the “average rate” regime).

Do social levies apply to EU/EEA non-residents?

Yes, but at a reduced rate of 7.5% (instead of 17.2%) for non-residents affiliated to the social security scheme of another EU/EEA/Switzerland Member State, on wealth income and real-estate capital gains (following the CJEU De Ruyter ruling and the 2019 Social Security Financing Act). For non-residents outside the EU/EEA, the full 17.2% rate applies.

Which forms must I complete as a non-resident?

A mandatory annual return via forms 2042 + 2042-NR, to be filed with the non-residents' individual tax office (SIPNR) in Noisy-le-Grand. If you hold French real estate: form 1418 (occupancy of premises). If French real-estate wealth > €1.3m: IFI return. All filing has been online since 2019.

How do I avoid double taxation between France and my country of residence?

The elimination of double taxation rests on the applicable bilateral tax treaty (more than 120 treaties signed by France). Two methods: (1) exemption in one of the two States, (2) tax credit creditable against the tax due in the country of residence. To benefit from reduced treaty rates (withholding on dividends/interest), a tax-residence certificate issued by the authorities of your country of residence is mandatory.

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© BENSAID Avocats — The information published on this site does not constitute legal advice. Sources: French Tax Code art. 4 B (tax residence), 197 A (non-resident scale), 244 bis A (real-estate capital gains), 119 bis (withholding on dividends); bilateral tax treaties (OECD model); 2019 Social Security Financing Act (social levies 7.5% EEA/Switzerland); CJEU 26 February 2015 De Ruyter (case C-623/13). Editorial update: 9 April 2026.