Excellent accompagnement de Maître Uzan. Très professionnel, disponible et clair dans ses conseils, notamment pour ma première déclaration fiscale en France après de nombreuses années à l'étranger. Dossier parfaitement suivi. Je recommande vivement.
International Taxation
International Taxation: Tax Returns, Optimisation and Defence for Individuals and Business Owners
Tax lawyer in Paris – more than 20 years of practice in international taxation
Summary
- Who it is for: business owners, entrepreneurs, individuals with assets in France and abroad, expatriates and inpatriates.
- Key issue: determining where you are taxable and avoiding double taxation through international tax treaties.
- Key obligations: annual reporting of foreign accounts (form 3916) and of foreign-source income (form 2047).
- Risks: fines, tax reassessments and a statute of limitations extended to 10 years for undeclared foreign accounts.
- Support: preventive advice, regularisation, lawful tax optimisation and defence in tax audits, with fees mainly on a fixed-fee basis.
Who are my international tax services for?
- Professionals and company executives, particularly those heading multinational groups or developing operations and activities abroad.
- Entrepreneurs with investments, structures or operations in several countries.
- Individuals holding assets or financial interests in France and abroad.
- Expatriates wishing to secure their tax position with regard to France.
- Inpatriates benefiting, or wishing to benefit, from the tax regime for those returning to France.
What are the challenges of taxation in an international context?
- Complex and ever-changing legislation: the rules evolve constantly and become highly technical for non-specialists.
- The risk of non-compliance: a mistake can lead to heavy financial penalties, or even prosecution.
- The scarcity of truly specialised advice: few practitioners master both domestic law and tax treaties.
My objective is clear: to offer you legal certainty, tax optimisation and peace of mind. By anticipating risks, I help you avoid penalties and disputes with the French tax authorities.
What are the fundamentals of international taxation?
As soon as a person has economic ties with several countries (income, assets, activities), they may fall under several tax systems at the same time. Three concepts frame the analysis:
- Tax residence: under French law, you are domiciled in France if your home or principal place of stay, your main professional activity or the centre of your economic interests is located there (article 4 B of the French General Tax Code (CGI)). A single criterion is sufficient.
- Territoriality of tax: a French resident is in principle taxable on their worldwide income; a non-resident is taxable only on their French-source income.
- International tax treaties: they allocate taxing rights between States and provide mechanisms (tax credit, exemption) to avoid double taxation.
The rules differ according to the nature of the income: passive income (dividends, interest, rents) or active income (salaries, capital gains). A sound understanding often makes it possible to legitimately reduce one’s tax burden through the legal schemes available, and to anticipate the consequences of an international inheritance or gift.
What are the risks in the event of an error or omission?
- Undeclared foreign accounts: a fine of €1,500 per account and per year, increased to €10,000 where the account is located in a non-cooperative State or territory (article 1736 of the CGI).
- Extended statute of limitations: the tax authorities in principle have three years to issue a reassessment; this period is extended to ten years, subject to exceptions, for income relating to undeclared foreign accounts or assets (article L169 of the Book of Tax Procedures (LPF)).
- Reassessments and surcharges: an omission or a misunderstanding of the rules may result in back taxes, late-payment interest and surcharges.
A voluntary regularisation, prepared methodically, is generally preferable to the omission being discovered during a tax audit.
Which service should you choose for your situation?
The table below directs you to the page dedicated to your situation. The same areas are presented as cards just after it.
| Your situation | Main issue | Dedicated service |
|---|---|---|
| You are subject to a tax audit concerning foreign accounts or income | A long and burdensome procedure; significant reassessments if poorly handled | Tax audit of foreign accounts |
| You hold a bank account, a payment account or a digital asset account outside France | Holding is legal, but annual reporting is mandatory (form 3916 / 3916-bis) | Foreign accounts |
| You receive RSUs, stock options or free shares from a foreign company | Allocation of the gain between France and abroad, and tax options to be considered | Foreign RSUs and stock options |
| You own real estate abroad | Income to be declared in France; tax credit depending on the tax treaty | Foreign real estate |
| You receive foreign-source income | Return no. 2047 and choice of the appropriate options | Foreign income tax returns |
| You receive foreign interest or dividends | In principle taxable in France; credit for foreign tax depending on the treaty | Foreign interest or dividends |
| You are paid by a foreign employer or work outside France | Avoiding double taxation of salaries | Foreign salaries |
| You are leaving France | Conditions for losing tax residence; exit tax for certain securities holders | Tax expatriation |
| You are moving to France to work | Inpatriate regime: advantageous if properly implemented | Tax inpatriation |
| You give or receive an asset involving a foreign element | Duties in France depending on residence and the location of the assets; reduction solutions depending on the case | International gift |
| You inherit from a deceased person or assets located abroad | In principle taxable in France; exemptions or reductions possible depending on the case | International inheritance |
AREAS OF PRACTICE IN INTERNATIONAL TAXATION
Tax Audit of Foreign Accounts
Beware! It is a Long and Burdensome Procedure that can lead to significant reassessments if it is not handled correctly
Foreign Accounts
It is Legal! But They Must Be Declared Correctly Every Year
Foreign RSUs, Stock Options, etc..
There are options to optimise their taxation
Foreign Real Estate
Tax treaties make it possible to benefit from tax credits in France
Foreign Income Tax Returns
Attractive options exist
International Gift
Depending on the case, solutions exist to pay less tax, or even none at all
Tax Expatriation
It is possible, but make sure you meet all the necessary conditions so you can do it with complete peace of mind
Tax Inpatriation
A very advantageous regime if it is implemented correctly and well optimised
Foreign Interest or Dividends
In principle they are taxable in France but can often be optimised
Foreign Salaries
In many cases it is possible to avoid being taxed twice in France
International Inheritance
In principle taxable in France, but in certain cases there are schemes for exemption from or reduction of duties
Foreign Rental Income
Every French resident is taxed on their foreign rental income, with a tax credit to avoid double taxation
How much does an international tax lawyer cost?
Fees vary according to the complexity of your situation, the time to be spent on the case, the financial stakes and the lawyer’s experience.
- Fixed fee: for a well-defined engagement (foreign income tax return, advance tax ruling request, regularisation of accounts…).
- Time spent: based on an agreed hourly rate.
- Success fee: sometimes offered in addition, particularly in litigation or tax reassessment matters.
For my part, I mainly work on a fixed-fee basis: so there are no surprises for the client. Comparing rates is legitimate, but only for an equivalent scope: in-depth expertise in tax treaties or wealth structuring may justify a higher cost, which often pays off in the long term.
Why use a tax lawyer?
- More than 20 years of practice: hundreds of international tax matters handled, with responsiveness and availability.
- Foreign accounts: handling regularisations to limit reassessments and penalties and avert criminal exposure.
- International inheritances and gifts: files compliant with tax law, with the legally available optimisations to reduce duties.
- RSUs, stock options, free shares: often granted by a foreign group company; application of all legal options to reduce the tax.
- Tax audit: employee or umbrella-company worker of a foreign company, freelancer with a structure abroad, recipient of foreign income: a well-reasoned defence to reduce the risk of reassessment.
I assist you with your tax obligations in France, taking into account your international assets and income, while constantly monitoring legislative developments and tax treaties. To present your situation, book an appointment.
FAQ
Do I have to declare a foreign account even if I rarely use it?
Yes. Accounts opened, held, used or closed abroad during the year must be reported with your income tax return, on form 3916 (3916-bis for digital asset accounts).
The obligation applies even if the account generates no income. Failing this, a fine applies for each undeclared account.
Am I a French tax resident if I work abroad?
Not necessarily. Meeting just one of the criteria of article 4 B of the CGI (home or principal place of stay, main activity, centre of economic interests) is enough to be considered domiciled in France.
If another State also considers you a resident, the applicable tax treaty settles the matter.
Must income already taxed abroad be declared in France?
As a general rule, yes, if you are a French tax resident. It is declared in particular on form 2047, then on the income tax return.
Depending on the treaty, France grants a tax credit or exempts the income while taking it into account to calculate the effective tax rate.
How are your fees set?
I mainly work on a fixed-fee basis, set after reviewing your situation and the scope of the engagement. This way you know the cost in advance.
Glossary
Tax residence: The State in which a taxpayer is taxable on all of their worldwide income.
Tax treaty: A treaty between two States that allocates taxing rights and avoids double taxation.
Treaty tax credit: An amount credited against French tax to take account of tax paid abroad, in accordance with the treaty.
Form 3916: Annual return reporting accounts opened, held, used or closed outside France.
Exit tax: Taxation of unrealised capital gains on certain securities when the tax domicile is transferred outside France (article 167 bis of the CGI).
Further reading
- Article 4 B of the CGI: criteria for tax domicile in France.
- Article 1649 A of the CGI and BOI-CF-CPF-30-20: obligation to report foreign accounts.
- Article 1736 of the CGI and BOI-CF-INF-20-10-50: fines for failure to report.
- Article L169 of the LPF: statute of limitations for the tax authorities.
- Articles 155 B and 167 bis of the CGI: inpatriate regime and exit tax.
- Article 750 ter of the CGI: territoriality of inheritance and gift duties.
- Forms 2047 and 3916: foreign-source income and foreign accounts (impots.gouv.fr).
- I have foreign income: which returns must I file in France?
- I have foreign accounts: how do I declare them?
- Tax audit: how to defend yourself?
