By country — Germany

Tax Representative in France for German Residents and Businesses

Germany is in the EU: some obligations are reduced, but not all. This guide details the French tax rules applicable to Germans with interests in France.

EU membership: what it changes for Germans

As a founding member of the European Union, Germany benefits from the administrative and tax assistance mechanisms between Member States. This membership translates into a number of concrete advantages for German individuals and businesses with tax obligations in France.

For individuals resident in Germany, French tax rules apply to French-source income and capital gains. EU membership does not exempt from these obligations, but it modifies how they are discharged, particularly with regard to the fiscal representative for VAT.

Summary of EU rules for German residents Exempt from the accredited fiscal representative requirement for VAT (EU). Solidarity levy rate of 7.5% instead of 17.2% on capital gains and property income (if affiliated to the German social security scheme). Accredited fiscal representative obligation maintained for real estate capital gains above €150,000.

French real estate owned by German residents

Many Germans own property in France, particularly in sought-after regions such as Alsace (close to the border), Provence or the Languedoc. These properties may be secondary residences, rental investments or inherited properties.

The French tax obligations associated with these properties:

  • Rental income: taxable in France each year. Form 2044 (actual regime) or 2042 (simplified regime). Minimum rate of 20% for non-residents on income up to €28,797 (2026 threshold)
  • Property tax (taxe foncière): due annually on built properties in France
  • Real estate wealth tax (IFI): applicable if the net value of the French real estate portfolio exceeds €1,300,000
  • Capital gain on disposal: taxable in France on a sale, with progressive taper relief for length of ownership

Capital gains and the accredited fiscal representative

The accredited fiscal representative requirement for real estate capital gains is set out in Article 244 bis A of the French General Tax Code. It applies to all sellers who are French non-residents for tax purposes, including EU residents, whenever the net gain exceeds €150,000.

The applicable tax rate for EU/EEA residents is 26.5%:

  • 19% income tax
  • 7.5% solidarity levy (not 17.2%, as EU residents affiliated to their state's social security scheme are exempt from French social contributions)
Practical example A German couple residing in Munich sells their villa on the Côte d'Azur, acquired in 2011 for €600,000, for €1,200,000. Gross capital gain: €600,000. After taper relief for 15 years of ownership (60% on income tax, 33.60% on social levies), the taxable gain for income tax purposes is €240,000. The net gain far exceeds €150,000. An accredited fiscal representative is mandatory. Estimated tax: approximately €155,000 (before the Franco-German treaty is applied on the German side).

French VAT and German businesses

German companies — GmbH, AG, UG — that carry out taxable transactions in France benefit from the exemption from the accredited fiscal representative requirement thanks to Germany's EU membership. They can appoint a non-accredited agent (Steuerberater, Franco-German accountant) or manage their obligations directly.

Cases requiring VAT registration in France for a German company:

  • Sales of goods to French consumers exceeding the €10,000 OSS threshold (or using the OSS one-stop shop)
  • Storage of goods in France (warehouse, Amazon FBA, 3PL)
  • Installation or assembly works in France
  • Intra-Community acquisitions of goods delivered in France
  • Real estate or construction services in France
Watch out for German real estate companies An Immobilien GmbH (German property company) that owns a building in France may be subject to IFI if the value exceeds €1,300,000, and to real estate VAT if it carries out letting or sale transactions subject to VAT. These obligations may require a fiscal representative or an agent specialising in Franco-German taxation.

To find a professional experienced in Franco-German cases, consult the list of DGFiP-accredited fiscal representatives.

The Franco-German tax treaty

The convention between France and Germany was signed on 21 July 1959 and amended on several occasions, notably in 1989 and 2015. It is one of the most important tax treaties for France, given the intensity of Franco-German economic exchanges.

Key provisions of this treaty for individuals and businesses:

  • Real estate income and capital gains on property located in France are taxable in France
  • Germany applies an exemption with progression clause or a tax credit to avoid double taxation
  • Business profits are only taxable in the other state if a permanent establishment exists there
  • Dividends are subject to limited withholding tax (5% or 15% depending on the case)

Frequently asked questions

It depends on the capital gain. If the net gain after allowances exceeds €150,000, an accredited fiscal representative is mandatory, even for a EU resident such as a German national. Below this threshold, the notary withholds the tax directly. The obligation stems from Article 244 bis A of the French General Tax Code (CGI).
No, not for VAT. As Germany is in the EU, a GmbH can register for French VAT without an accredited fiscal representative. It can appoint a non-accredited agent. However, if the company owns property in France and sells it with a capital gain above €150,000, an accredited representative will be required for form 2048-M.
Yes. The convention of 21 July 1959 (revised in 1989 and 2015) provides that capital gains on real estate located in France are taxable in France. Germany in turn grants a tax credit to avoid double taxation. German residents therefore do not pay the same tax twice, but they remain taxable in France.
Since the Conseil d'État ruling of 2019 (de Ruyter case law), residents of EU Member States who are affiliated to a social security scheme in their own country are not subject to French social contributions (CSG/CRDS) on their investment income. They are only subject to the 7.5% solidarity levy. This represents a significant saving compared to the 17.2% rate applicable to non-EU residents.
Official sources impots.gouv.fr — BOFiP — service-public.fr

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