The non-resident tax regime in France

In order to make France more attractive, the government has put in place a favorable tax regime for “impatriates” or non-resident codified under the article 155 B of the General Tax Code. This regime, created by the Law n°2008-776 dated of August 4th, 2008, provides income tax exemption benefiting the “impatriates” and can be applied to employees and to corporate officers who meet some specifics conditions and are recruited by a French based company.

Who can benefit from this tax exemption!

Two types of “impatriates” can benefit from this tax exemption:the “impatriate” recruited directly from abroad by a French company and the “impatriate” employed by a foreign company to work within a French company. For more information, learn this here now

With the application of the special tax regime, the following income received by the “impatriates” can benefit from the tax exemptions:

Exemption for supplementary bonuses/premiums directly linked to the “impatriation” or “impatriation” bonuses. Such bonuses must be provided for in the employment contract or corporate appointment before the commencement of the duties in France, or on option can be fixed at 30% of the total net remuneration

the part of income relating to the activity carried out abroad (outside France) in the interests of the employer (working days abroad):

  • 50 % of the investments income from foreign sources (interests, dividends); 
  • 50 % of the capital gains on the sale of securities from foreign sources; 
  • 50 % of certain intellectual and industrial property rights from foreign sources.

What are the conditions to be fulfilled in order to benefit from the special tax regime?

The benefit of this tax regime is subject to the following conditions:

  • Have a fixed-term or permanent employment contract in a company based in France either through a company based abroad (intragroup mobility), or recruited directly by the company based in France
  • Have not been considered as French tax resident within the 5 years preceding the beginning of the assignment in France, regardless of the impatriate’s nationality; 
  • Be domiciled in France for tax purposes.