Switzerland is outside the EU: tax consequences in France
Despite its geographical proximity and its many bilateral agreements with the European Union, Switzerland is neither a member of the EU nor of the EEA. This distinction is fundamental under French tax law: individuals and legal entities resident in Switzerland are treated as non-EU entities and are subject to the full range of obligations applicable to non-residents.
In practice, this means that the obligation to appoint a fiscal representative accredited by the French Tax Authority (DGFiP) applies in full: for capital gains on real estate above €150,000, and for any Swiss company carrying out transactions subject to French VAT without being established in the EU.
Swiss residents and real estate in France
The Franco-Swiss border region (Haute-Savoie, Ain, Jura, Doubs, Haut-Rhin) is home to a significant number of Swiss residents who own property in France. Whether it is a secondary residence in the Alps, a rental property in Lyon or an apartment in Paris, French tax obligations apply in full.
Rental income: rent received in France is taxable in France as property income. The minimum rate applicable to non-residents is 20% on net property income (Article 197 A of the French General Tax Code (CGI)), subject to the Franco-Swiss treaty which may modify this taxation.
Capital gains tax: on a property sale, the applicable rate is 26.5% (19% income tax + 7.5% solidarity levy). If the capital gain exceeds €150,000, the appointment of an accredited fiscal representative is mandatory before the notarial deed is signed.
French VAT for Swiss companies
A company established in Switzerland that carries out commercial activities in France — selling goods on French territory, providing taxable services, e-commerce — must register for French VAT and appoint an accredited fiscal representative. The main situations covered are:
- Import and resale of goods in France
- Provision of services to French clients (architect, engineering firm, consultant…)
- Online sales to French consumers exceeding the €10,000 OSS threshold
- Participation in trade fairs, exhibitions or markets in France with on-site sales
The accredited fiscal representative handles registration with the SIEE, obtains the VAT number and submits periodic returns. They are jointly and severally liable for the payment of the VAT due.
The Franco-Swiss tax treaty
The tax treaty between France and Switzerland (signed in 1966, revised several times) lays down rules to avoid double taxation. It is particularly relevant for:
- Real estate income: taxable in the country where the property is located (France). The treaty generally grants a tax credit in Switzerland.
- Real estate capital gains: France retains the right to tax, but the treaty may partially neutralise the taxation depending on the taxpayer's profile.
- Cross-border workers: a specific regime often provides that cross-border workers living in Switzerland and working in France are taxed in Switzerland on their employment income.
These provisions do not replace fiscal representation obligations: they only serve to reduce or eliminate economic double taxation. Your tax representative in France will be your point of contact for dealings with the DGFiP, while a tax adviser in Switzerland will handle the Swiss side.
To find a fiscal representative specialising in Franco-Swiss situations, consult the list of DGFiP-accredited fiscal representatives.
How to appoint your tax representative
The procedure is the same as for any non-EU non-resident. The documents required vary depending on the situation:
- For an individual (real estate): identity document, title deed or preliminary sale agreement, purchase history, proof of residence in Switzerland
- For a company (VAT): extract from the Swiss commercial register (RC), articles of association, bank details, description of the activity in France
Once the mandate is signed, the representative submits the file to the relevant office (SIEE for VAT, local Tax Office for real estate) and handles all formalities until the French tax number is obtained.