Glossary of French Tax for Non-Residents

This glossary brings together the key terms of French taxation applicable to non-residents, expatriates, and foreign companies. Each definition is accompanied by links to pages that explore the topic in greater depth.

A

Accreditation (tax representative)

Administrative authorisation granted by the French Tax Authority (DGFiP) allowing a professional to legally exercise the function of tax representative in France. Without accreditation, actions taken by the representative have no legal standing with the tax authority. Learn more about accreditation.

Article 244 bis A of the CGI

Article of the French General Tax Code (CGI) establishing the taxation in France of capital gains on property realised by non-residents. It provides in particular for the obligation to appoint an accredited tax representative when the sale price exceeds €150,000. Capital gains on property for non-residents.

Article 289 A of the CGI

Article of the French General Tax Code requiring companies not established in a country linked to France by a tax assistance agreement to appoint a tax representative for their French VAT obligations. This is the main legal basis for VAT tax representation. Who is required to appoint one?

VAT reverse charge (autoliquidation)

Mechanism by which the buyer (a VAT-registered entity) is liable for VAT instead of the foreign seller, in B2B transactions. This mechanism applies to intra-EU service supplies and certain supplies of goods. It may exempt the foreign supplier from appointing a tax representative for these specific transactions. Taxable transactions — French VAT.

C

CA3

Monthly or quarterly VAT return form in France. Foreign companies registered for French VAT file this form electronically, generally through their tax representative. VAT returns for non-residents.

CGI (French General Tax Code)

Legislative text consolidating all French tax rules: income tax, corporate income tax, VAT, registration duties, etc. The main provisions concerning non-residents are found in Articles 4 A, 164 A, 209, 244 bis, 244 bis A, 289 A, and 290 quinquies.

Bilateral tax treaty

International agreement concluded between two states to avoid double taxation and prevent tax evasion. These treaties define the rules for allocating taxing rights between the two countries and may modify tax representation obligations (in particular for VAT). France has signed over 130 such treaties. Countries linked by mutual assistance agreements.

Mutual assistance for recovery agreement

Specific convention allowing the French tax authority to recover its tax debts on the territory of a partner state. Where such a convention exists, the foreign company is not required to appoint a VAT tax representative. All EU and EEA member states are covered.

CSG / CRDS (social levies)

The Contribution Sociale Généralisée (CSG) and Contribution au Remboursement de la Dette Sociale (CRDS) are social levies that apply to French property income of non-residents. Since a CJEU ruling (2015, de Ruyter case), non-residents affiliated to a social security scheme in another European state may be exempt. Social levies for non-residents.

D

DGFiP (French Tax Authority)

The French administration responsible for tax collection and fiscal management. It grants accreditations to tax representatives, reviews returns, conducts tax audits, and issues tax assessments.

Double taxation

Situation in which the same income or capital gain is taxed twice in two different countries. Bilateral tax treaties are specifically designed to eliminate or reduce this double taxation, by allocating the taxing right to one of the two states or by providing a tax credit in the country of residence.

E

Permanent establishment

A fixed place of business (office, factory, construction site lasting more than 12 months, etc.) through which a foreign company carries out all or part of its activity in France. The presence of a permanent establishment triggers liability to French corporate income tax on profits attributable to it. Permanent establishment vs tax representative.

Capital gain exemption

Legal mechanism allowing a non-resident to be wholly or partially exempt from taxation on capital gains on property realised in France. Main cases of exemption: principal residence, holding period exceeding 22 years (income tax) or 30 years (social levies), first sale by a non-resident under certain conditions. Capital gain exemptions for non-residents.

F

Form 2048-IMM

Capital gains declaration for non-residents, filed on the sale of property in France. This form is generally prepared by the accredited tax representative and handed to the notary handling the sale, who withholds the tax from the sale price.

Form 2746

Annual declaration allowing foreign entities owning property in France to be exempt from the 3% tax on the market value of property. It must disclose the identity of shareholders or partners holding more than 1% of the capital.

G

Bank guarantee (tax representative)

Financial surety required of the VAT tax representative to cover any tax debts of their client owed to the French Treasury. This guarantee partly justifies the representative's joint liability and is one of the criteria for obtaining DGFiP accreditation. Bank guarantee — VAT tax representative.

One-Stop Shop (OSS / IOSS)

European scheme allowing companies to register for VAT in a single member state to declare and pay VAT owed in all member states (B2C sales of goods or services). The OSS covers intra-EU sales; the IOSS (Import One Stop Shop) covers imports of goods worth less than €150. This mechanism may in some cases exempt from the tax representative obligation. One-Stop Shop and tax representative.

I

IOSS (Import One Stop Shop)

Simplified European VAT regime for sellers of imported goods from third countries with a value below €150, destined for EU consumers. A tax intermediary may be required for non-EU sellers using the IOSS. IOSS and tax intermediary.

Personal income tax (IR) for non-residents

Non-residents are taxable in France on their French-source income (rental income, wages from activity carried out in France, capital gains on property, etc.). The minimum tax rate is 20% on the first €29,120 (2024) and 30% above that, unless a more favourable average rate applies. Personal income tax for non-residents in France.

Corporate income tax (IS)

Tax levied on profits generated in France by companies. For foreign companies, it applies only to profits generated through a permanent establishment or habitual operations in France. Standard rate: 25% since 2022. Corporate tax and foreign companies.

L

LMNP (Non-professional furnished rental)

Tax regime applicable to non-residents who let a furnished property in France without this being their principal activity. Income is taxed in the category of Industrial and Commercial Profits (BIC), not as property income (revenus fonciers). LMNP and tax representative.

M

Fiscal agent (mandataire fiscal)

Professional authorised to represent a taxpayer before the tax authority, but without necessarily holding the specific DGFiP accreditation required of a tax representative. The fiscal agent acts on behalf of the taxpayer but does not assume joint liability as an accredited representative would. Tax representative vs fiscal agent.

Representation mandate

Document by which a non-resident or foreign company appoints an accredited tax representative to act on their behalf before the French tax authority. This mandate defines the scope of the engagement, fees, duration, and termination conditions. Appointment and mandate.

MRE (Moroccans Residing Abroad)

Designation used for Moroccan nationals residing outside Morocco, particularly in France. MREs with property in France are subject to French tax obligations as non-residents, including the tax representative obligation under the standard conditions. Tax representative France-Morocco.

N

Non-resident for tax purposes

An individual or legal entity whose tax domicile or registered office is not located in France. An individual is a French tax non-resident if they do not meet any of the criteria in Article 4 B of the CGI: principal home or place of stay outside France, principal professional activity outside France, main economic interests outside France. Non-resident tax obligations.

Intra-EU VAT number

Tax identifier assigned to any company registered for VAT in an EU member state. For foreign companies registered in France, this number begins with "FR" followed by a check key and the SIREN number. It is required to issue French VAT invoices. French VAT registration.

O

OSS (One Stop Shop)

European VAT one-stop shop allowing companies selling goods or B2C services in multiple member states to centralise their VAT declarations in a single country. Mandatory since 1 July 2021 for intra-EU distance sales exceeding €10,000 per year. OSS and tax representative.

P

Capital gain on property (plus-value immobilière)

Gain realised on the sale of property, calculated as the difference between the sale price and the acquisition price (plus costs and works). For non-residents outside the EU/EEA, the tax rate is 33⅓% (or a more favourable treaty rate), plus social levies of 17.2% in principle. Capital gains for non-residents.

Tax limitation period (prescription fiscale)

The period beyond which the tax authority can no longer carry out a reassessment. The standard period is 3 years for corporate tax and VAT, and 6 years in cases of serious breaches. Where assets held abroad have not been declared, this period may be extended to 10 years. Tax limitation periods for non-residents.

Social levies (prélèvements sociaux)

Set of contributions levied on certain investment and capital income (CSG 9.2%, CRDS 0.5%, solidarity levy 7.5% = total 17.2%). They apply to French property income of non-residents, subject to an exemption linked to affiliation to a European social security scheme. Social levies — property.

R

Accredited tax representative

Professional who has obtained DGFiP accreditation to represent non-residents or foreign companies before the French tax authority. They are jointly and severally liable with their client for the payment of taxes and duties owed in France. What is a tax representative?

Joint and several liability

Commitment by which the tax representative acts as guarantor for the payment of their client's tax obligations towards the French Treasury. In the event of the client's default, the administration can claim payment directly from the representative. This liability justifies the bank guarantee and mandatory accreditation. Role and responsibilities.

Withholding at source — property (retenue à la source)

Mandatory deduction made by the notary at the time of signing the deed of sale. The notary withholds the estimated capital gains tax and remits it directly to the tax authority on behalf of the non-resident seller. The accredited tax representative is required to certify this calculation to the notary. The notary and the tax representative.

Rental income (revenus fonciers)

Income from the bare (unfurnished) rental of property located in France. For non-residents, it is taxable in France in the property income category, at a minimum rate of 20% or the average rate if more favourable. Appointing a tax representative is not systematically mandatory for rental income alone. Rental income for non-residents.

S

SCI (French property company)

French legal structure allowing several individuals to jointly hold and manage property assets. A foreign SCI or one held by non-residents may be subject to specific French tax obligations, including the 3% tax and specific income tax rules. Foreign SCI and tax representative.

€150,000 threshold

Amount above which appointing an accredited tax representative becomes mandatory for a non-resident (outside the EU/EEA with a mutual assistance agreement) selling property in France. Below this threshold, the notary may proceed without an accredited representative. The €150,000 threshold.

SIE (French Tax Office for Companies)

The DGFiP service responsible for companies (VAT registration, return filing, corporate tax audits). Foreign companies registered for VAT in France are assigned to the competent SIE according to their activity, often the DINR (Non-Residents Tax Directorate) for foreign structures.

T

3% tax on property

Annual tax owed by legal entities (companies, trusts, foundations) directly or indirectly holding property in France, calculated on the market value of the assets as of 1 January. It can be avoided by filing the annual form 2746 disclosing the identity of shareholders. Foreign holding company in France.

VAT (Value Added Tax)

Indirect tax on consumption, levied on most supplies of goods and services carried out in France. The standard rate is 20%, with reduced rates of 10%, 5.5%, and 2.1% depending on the nature of the goods or services. Foreign companies carrying out taxable transactions in France may be required to register for French VAT. VAT tax representative in France.

Property VAT (TVA immobilière)

VAT applicable to specific property transactions: sales of new buildings (less than 5 years old), property dealer activities, property development operations. A non-resident carrying out such transactions may be required to appoint an accredited VAT tax representative. Property VAT and tax representative.