A taxpayer's attachment to French taxation rests on article 4 B of the French Tax Code, which sets out three alternative tests: the home or main place of stay in France, the main professional activity carried out in France, or the centre of economic interests in France. Only one of these tests needs to be met for French tax residence to be established under domestic law — hence income tax on all worldwide income ("unlimited tax liability"). But this characterisation is not final: bilateral tax treaties may reallocate tax residence to another State. The 2025 Finance Act explicitly codified the primacy of treaty law over domestic law — a welcome clarification. This page summarises the analytical framework.
Analysing an individual's tax residence in France always follows two tiers. Tier 1: domestic law (French Tax Code art. 4 A and 4 B). If one of the three alternative tests is met (home/stay, activity, centre of economic interests), the person is tax-resident in France under domestic law, and subject to unlimited tax liability (worldwide taxation). Tier 2: the applicable bilateral tax treaty. If the person is also recognised as a resident of another State by that State, the treaty resolves the conflict through cascading tests (permanent home, centre of vital interests, habitual abode, nationality, mutual agreement).
The primacy of treaty law is now explicit: a person recognised as resident of another State under the applicable treaty is not tax-resident in France for French domestic-law purposes — they are treated as a non-resident, with the associated consequences (taxation limited to French-source income, 20/30% minimum rate, withholding tax, etc.). The 2025 Finance Act codified this primacy.
The firm secures changes of tax residence (expatriation, return to France, dual residence) and defends taxpayers when the authorities seek to treat them as French tax residents.
The home is the place of habitual residence, where the taxpayer has their family (spouse, dependent children). It prevails over the mere place of work. Failing a home, the main place of stay is where the taxpayer spent the longest time during the year (in practice, more than 183 days is a strong indicator, but case law adopts a broader factual assessment).
A person who carries out their main professional activity in France is resident in France — unless they show that this activity is secondary. The 2020 Finance Act added a presumption for executives of companies headquartered in France with annual turnover above €250M: they are presumed to carry out their main professional activity in France, unless proven otherwise.
The centre of economic interests is the place where the taxpayer made their main investments, has the seat of their business, manages their assets, or derives most of their income. A relevant test for retirees and persons of independent means who no longer have a professional activity. An overall assessment of income sources and asset location.
In the event of dual attachment (resident of France + resident of another State), the bilateral treaty resolves the conflict through a cascade: (1) permanent home; (2) centre of vital interests (closest personal and economic ties); (3) habitual abode; (4) nationality; (5) mutual agreement between the competent authorities. Each treaty may adapt this framework — care is needed with older treaties.
Becoming a French tax resident = unlimited tax liability (worldwide income), liability to social levies (save in specific cases), inclusion in the tax household, full annual return. Becoming a non-resident = tax liability limited to French-source income, 20-30% minimum rate (French Tax Code art. 197 A), withholding tax on certain income, possible exit tax (art. 167 bis). The switch must be structured over time.
The firm secures changes of tax residence in two stages: pre-transaction analysis (characterisation under domestic law and the applicable treaty, tax simulation, expatriation timetable, possible exit tax); post-transaction follow-up (return for the last French year, bringing assets into compliance, defence in the event of a challenge by the authorities).
Our dual France · Switzerland bar admission is an asset for matters with an international dimension, notably in the France–Switzerland corridor — direct coordination with Swiss counsel on the taxation of the canton of residence, pension and wealth aspects.
Article 4 B of the French Tax Code sets out three alternative tests (one is enough): (1) the home or main place of stay in France; (2) carrying out a professional activity in France as the main activity; (3) the centre of economic interests in France. If one of these tests is met, the person is tax-resident in France under domestic law and subject to income tax on worldwide income.
No, it is only an indicator. The home (family residence) prevails over a mere day-count. A person whose family is in France and who travels regularly abroad remains resident in France by reason of the home. Conversely, a person spending 200 days in France for tourism, without family or economic ties, may not be resident. The 183-day rule is more often used by international treaties (habitual abode) than by domestic law.
No. The presumption introduced by the 2020 Finance Act concerns only executives of companies headquartered in France with annual turnover above €250 million. These executives are presumed to carry out their main professional activity in France. The presumption can be rebutted — but it reverses the burden of proof, which makes the position of the executives concerned more difficult.
The bilateral tax treaty resolves the conflict. Under the widely-adopted OECD model: (1) permanent home in only one of the two States; (2) failing that, centre of vital interests; (3) failing that, habitual abode; (4) failing that, nationality; (5) failing that, mutual agreement between authorities. The cascade is applied in order — as soon as a test determines residence, the analysis stops.
Yes. The 2025 Finance Act explicitly codified this primacy: a person recognised as resident of another State under the applicable treaty is not tax-resident in France for domestic-law purposes — they are treated as a non-resident with all the associated consequences (taxation limited to French income, 20/30% minimum rate, withholding tax, etc.).
Three axes: (1) pre-departure analysis of the characterisation under domestic law and the target country's bilateral treaty; (2) wealth structuring (managing the exit tax (French Tax Code art. 167 bis), unrealised gains, foreign accounts); (3) effective materialisation of the change (home, activity, centre of interests) and building an evidential file. See our dedicated analysis: Preparing your tax expatriation.
Yes, within the reassessment period (3 years as a rule, 10 years in the event of undisclosed activity or undeclared foreign accounts). Re-characterisation triggers a reassessment of income tax on worldwide income for the re-characterised years, plus interest and surcharges. The defence requires an in-depth factual analysis (home, stay, activity, economic interests) and the correct use of the applicable bilateral treaty.
General framework: minimum rate, social levies, treaties.
Voir la page WealthPre-departure methodology: exit tax, treaties, timetable.
Voir la page WealthGeneral framework of tax residence and permanent establishment.
Voir la page CSGInteraction of social levies and tax residence.
Voir la pageA confidential initial consultation to analyse your situation under domestic and treaty law, and secure your status.
Written by
Me Jonathan Bensaid, avocat fiscaliste, fondateur du cabinet Bensaid Avocats, inscrit aux Barreaux de Paris & Genève.
© BENSAID Avocats — The information on this site does not constitute legal advice and cannot replace a personalised tax analysis.