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Tax Expatriation
What tax formalities should you complete before leaving France to secure your expatriation? (residence, Exit Tax 2026, forms 2042-NR)
Tax lawyer in Paris – 20 years of expertise in departures from France and international mobility
Summary
- Tax residence: you remain a French resident if one of the criteria of Article 4 B of the French General Tax Code (CGI) is met in France (home or principal place of stay, principal professional activity, centre of economic interests), subject to the applicable tax treaty.
- Year of departure: the following year, you declare your income from 1 January to the date of departure (form 2042), then your French-source income received after departure (form 2042-NR).
- Non-residents: only French-source income remains taxable in France, with a minimum rate of 20% up to €29,579 and 30% above that amount (2025 income), unless you opt for the average rate.
- Exit tax: unrealised capital gains on securities are taxed on departure if you have been resident for 6 of the last 10 years and hold at least €800,000 in securities or 50% of a company's profits. The 2026 Finance Act did not change these conditions.
- Role of the tax lawyer: dating and documenting the departure, anticipating the exit tax and its deferral, securing the returns for the following years.
How do I know whether I have ceased to be a French tax resident?
Article 4 B of the CGI sets out three alternative criteria. Just one is enough for you to remain tax-domiciled in France:
- Home or principal place of stay: the place where your spouse and children usually live or, failing that, the country where you spend the most time.
- Principal professional activity: whether employed or self-employed, unless it is carried out in France on an ancillary basis.
- Centre of economic interests: the place of your main investments, the seat of your business or the main source of your income.
If you are also considered a resident by your host country, the tax treaty decides. It applies its own criteria in sequence: permanent home, centre of vital interests, habitual abode, then nationality. Treaty residence prevails. Keep proof of your settlement abroad (lease, employment contract, local certificate of residence).
What formalities should be completed in the year of departure?
- Report your departure: update your address abroad from your personal account on impots.gouv.fr. Your file is then transferred to the tax office for non-resident individuals (service des impôts des particuliers non-résidents, SIPNR, Noisy-le-Grand).
- Adjust withholding at source: report the change in circumstances so that the rate is adjusted. French-source salaries or pensions paid after departure are subject to a specific withholding tax for non-residents.
- File the following year: a form 2042 for income received from 1 January to the date of departure, and a form 2042-NR for French-source income received thereafter.
- File the exit tax return if you are concerned (form 2074-ETD), together with the income tax return for the year following departure.
How will I be taxed in France once I am a non-resident?
A non-resident is taxable in France only on French-source income: rents from a property located in France, French pensions, remuneration for an activity carried out in France, certain capital gains. The tax treaty may provide otherwise.
The tax is calculated using the progressive scale, but may not be lower than a minimum rate of 20% up to €29,579 of net taxable income, and 30% above that amount (2025 income, declared in 2026). If the average rate calculated on your worldwide income is lower, you may request its application by providing evidence of that income.
Am I subject to exit tax and can I defer payment?
Exit tax (Article 167 bis of the CGI) taxes, on the date of transfer of tax domicile, unrealised capital gains on your securities, earn-out receivables and certain capital gains subject to tax deferral. It applies if two conditions are met:
- Length of residence: having been domiciled in France for at least 6 of the 10 years preceding departure.
- Holding threshold: holding securities with a total value of at least €800,000, or an interest of at least 50% in a company's profits.
| Situation | Deferral of payment | Formalities |
|---|---|---|
| Departure to an EU or EEA State, or to a State bound to France by an administrative assistance agreement (fraud and recovery) | Automatic | 2074-ETD in the year following departure, then a follow-up return each year (2074-ETS or 2074-ETSL) |
| Departure to another State | On request, with a tax representative and guarantees | Request no later than 90 days before departure, then the same returns |
| Securities worth less than €2,570,000 | Tax relief after 2 years | Securities held throughout the period |
| Securities worth at least €2,570,000 | Tax relief after 5 years | Securities held throughout the period |
A sale, redemption or cancellation of the securities during the period ends the deferral. The 2026 Finance Act (Law no. 2026-103 of 19 February 2026) did not adopt the amendments proposing to extend these periods: the rules above remain applicable. The tax rate, however, follows that of investment income (flat tax (PFU) or progressive scale, plus social security contributions), the level of which has changed with the 2026 Social Security Financing Act.
What happens to my real estate and my residence in France?
- IFI: a non-resident remains liable for the real estate wealth tax (impôt sur la fortune immobilière) if their real estate assets located in France exceed €1,300,000 on 1 January. Their real estate located abroad is excluded.
- Second home: a dwelling retained in France is subject to the housing tax on second homes, possibly increased by the municipality. The occupancy declaration must be kept up to date on impots.gouv.fr.
What happens if I come back to live in France?
On your return, you once again become taxable in France on your worldwide income from the date of resettlement. If the exit tax is still deferred and you still hold the securities, the corresponding tax may be relieved. Depending on your professional situation, the impatriate regime may also apply: see our page Tax impatriation.
Why use a tax lawyer?
- Dating and proving the departure: the lawyer analyses the criteria of Article 4 B and of the tax treaty, and builds the evidence file in case your non-residence is challenged.
- Anticipating exit tax: valuation of securities, choice of timing, request for deferral and guarantees within the time limits.
- Securing your returns: 2042, 2042-NR, 2074-ETD and follow-up returns, including for your RSUs and stock options still vesting.
- Defending you: responding to requests from the French tax authorities, claims and litigation if a reassessment occurs.
To book an appointment: contact the firm.
FAQ
My spouse and children are staying in France: am I still a French tax resident?
In principle, yes. The home, that is to say the family's usual place of residence, is sufficient to establish tax domicile within the meaning of Article 4 B of the CGI, even if you work abroad.
The tax treaty concluded with your host country may, however, lead to a different conclusion. A case-by-case analysis is essential before departure.
Do I have to pay exit tax if I move to Portugal or Belgium?
If you meet the conditions of Article 167 bis, the tax is calculated, but its payment is automatically deferred for a departure to a European Union State.
You must file form 2074-ETD, then a follow-up return each year. The tax is relieved after 2 or 5 years if you keep the securities.
I am renting out my Paris flat after leaving: how do I declare the rent?
Rents from a property located in France are taxable in France. You declare them each year on form 2042-NR and its schedules, with the tax office for non-residents.
The minimum rate of 20% or 30% applies, unless you can show that an average rate calculated on your worldwide income is more favourable.
What happens if I sell my securities two years after leaving?
The sale ends the deferral of payment: the exit tax calculated on departure becomes payable, unless the relief period had already expired.
Any tax paid in the host country must be taken into account in accordance with the tax treaty.
Glossary
Tax domicile: Residence determined under Article 4 B of the CGI to establish where you are taxable on your worldwide income.
Treaty residence: Residence designated by the tax treaty in the event of dual residence.
Exit tax: Taxation of unrealised capital gains on securities upon transfer of tax domicile outside France.
Deferral of payment: Postponement of payment of exit tax until a triggering event (sale, redemption, cancellation of the securities).
Minimum rate: Floor rate of 20% or 30% applicable to the French-source income of non-residents.
Further reading
- Article 4 B of the CGI: criteria for tax domicile.
- Article 197 A of the CGI: minimum tax rate for non-residents.
- Article 167 bis of the CGI: exit tax; BOI-RPPM-PVBMI-50 (BOFiP commentary).
- Article 964 of the CGI: IFI for persons not domiciled in France.
- Forms: 2042, 2042-NR, 2074-ETD, 2074-ETS, 2074-ETSL.
- Firm pages: Tax impatriation, Tax returns for foreign income, Foreign RSUs and stock options.
