Who is affected from Australia?
Two main profiles are subject to French tax obligations from Australia. First, French expatriates who have settled in Australia, attracted by the job market, the quality of life or entrepreneurial opportunities in sectors such as engineering, tech or agriculture. Many have kept a property in France — a family home, a rented apartment.
Second, Australian businesses developing activities in France: importing Australian products (wines, foodstuffs, raw materials), digital services, e-commerce to French customers.
Real estate obligations in France
A property located in France creates French tax obligations regardless of the owner's country of residence. From Australia, the distance does not change these obligations — it simply makes them more difficult to manage without an intermediary.
The main obligations:
- Rental income: taxable in France. Minimum rate of 20% for non-residents on net income. Annual return mandatory (form 2044 or 2042)
- Property tax (taxe foncière): due each year by the owner, regardless of their place of residence
- Real estate wealth tax (IFI): if the net value of the French real estate portfolio exceeds €1,300,000
- Capital gain on disposal: 26.5% after taper relief for length of ownership. Social levy rate of 17.2% (not 7.5%, as non-EU/EEA residents do not benefit from the de Ruyter case law)
Capital gains and the accredited fiscal representative
When selling property in France with a net capital gain above €150,000, an Australian resident must appoint a fiscal representative accredited by the French Tax Authority (DGFiP) before the deed of sale is signed. This obligation is set out in Article 244 bis A of the French General Tax Code.
The applicable rate for an Australian resident is 36.2%: 19% income tax plus 17.2% social contributions (CSG, CRDS, solidarity levy). This higher rate than for EU residents is explained by the absence of the exemption linked to affiliation to an EU Member State social security scheme.
Australian businesses and French VAT
An Australian company (Pty Ltd, Trust, Partnership) that carries out taxable transactions in France is subject to French VAT. As Australia is not part of the EU, the accredited fiscal representative requirement applies in all cases of VAT registration.
The most common situations:
- Export of Australian products sold directly to French consumers (e-commerce)
- Digital services to French clients (SaaS, subscriptions, consulting)
- Storage of goods in France before resale
- Participation in trade fairs or exhibitions in France with on-site sales
The accredited fiscal representative is jointly and severally liable for the VAT owed by the Australian company. They file CA3 returns and liaise with the Service des Impôts des Entreprises Étrangères (SIEE).
To find a fiscal representative experienced in Franco-Australian cases, consult the list of DGFiP-accredited fiscal representatives.
The Franco-Australian tax treaty
The convention between France and Australia to avoid double taxation was signed on 13 April 2006. It entered into force in 2009 and covers income taxes and capital gains taxes.
Key points of this treaty:
- Real estate income and capital gains on property located in France are taxable in France
- Australia grants a tax credit (Foreign Income Tax Offset) for tax paid in France, avoiding double taxation
- Business profits are only taxable in France if a permanent establishment exists there
- An exchange of information mechanism between tax authorities is provided for (Article 26 of the treaty)