I Have Rental Properties Abroad
The taxation of foreign rental income (revenus fonciers) in France is governed by form 2047. This form is used by French taxpayers who own real estate abroad that generates rental income.
Form 2047 is used to report rental income from property located outside France. It is important to note that foreign rental income must also be reported in the country where the property is located, in accordance with local tax rules.
To complete form 2047, the taxpayer must provide information about the foreign real estate, including the addresses, the amounts of rent received, deductible expenses, as well as any exempt income.
Once form 2047 has been duly completed, it must be attached to the annual income tax return (form 2042) and sent to the French tax authorities (administration fiscale).
Moreover, in most cases this income is not taxable in France, thanks to international tax treaties.
In that case, in order not to be taxed in France, you must therefore complete either section 6 or section 8 of the 2047. This makes it possible not to be taxed on this foreign rental income.
I Sold a Property Abroad and Made a Capital Gain: How Do I Report It?
When an individual realises a real estate capital gain on a property located abroad, this gain is subject to tax in France (exception: certain international treaties make it possible not to be taxed in France; consult a tax lawyer). The form used to report these gains is form 2048 IMM.
Form 2048 IMM is used to report real estate capital gains realised abroad, whether they arise from the sale of a property or from any other disposal for consideration (exchange, contribution…).
In the form, the taxpayer must provide information about the property sold, such as its address, its acquisition date, its sale price, as well as any expenditure incurred to improve the property.
Once form 2048 IMM has been completed, it must be sent to the registration office (service de l'enregistrement).
Please note that the deadline is very short: 1 month!
I Have Foreign Dividends and Interest, or Capital Gains on the Sale of Shares Abroad
Foreign investment income received by individuals who are tax residents of France must also be reported. Form 2047 is used for this purpose.
Form 2047 is used to report foreign investment income, such as interest, dividends, or capital gains on securities realised abroad.
Interest: line 230 et seq. of the 2047
Dividends: line 200 et seq. of the 2047
Capital gains on the sale of shares: section 3 of the 2047
Please note! There are international treaties which, depending on the country concerned, may provide that the income is not taxable in France.
If the treaty gives entitlement to a tax credit in France: section 6 or 7 of the 2047.
Reporting Foreign Accounts: Form 3916
I have bank accounts abroad, or trading accounts abroad, a securities portfolio abroad…
In France, every individual who is a tax resident is required to report bank accounts, life insurance policies and securities accounts held abroad. This obligation also applies to inactive accounts!
Form 3916/3916-bis is used to report foreign accounts held by French taxpayers.
The taxpayer must provide the information required on form 3916, such as the name of the bank, the address of the account and the account number (but not the account balance).
Please Note!
Income received abroad is, in principle, taxable in France.
BUT there are many tax treaties: most of the time you will be able to benefit from a TAX CREDIT in France! And thus reduce or even completely eliminate your French tax on foreign income.
Consult a tax lawyer to find out what you may be entitled to.
