Europe
France: tax at a glance
A high-tax residence system with progressive income tax and surtaxes on high incomes. There is also a real-estate-only wealth tax, known as IFI, and steep inheritance tax.
Worldwide (residence-based)
Last verified
Ways to relocate to France
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 45%Progressive, rising to 45% above ~EUR 180k per part. On top of that sits the exceptional high-income contribution, CEHR, at 3-4%, and a 2025-2026 minimum tax, CDHR, designed to keep the effective rate near 20% on very high incomes.
- Corporate income
- 25%
- Capital gains
- A flat 30% rate, made up of the PFU: 12.8% income tax plus 17.2% social levies. Interest and gains will climb toward ~31.4% in 2026 as social levies rise.
- VAT / TVA
- 20%
- Dividends (WHT)
- 25%
- Interest (WHT)
- 0%, though 75% applies to payments made to non-cooperative jurisdictions.
- Royalties (WHT)
- 25%
- Social security (employee)
- ~20-23%
- Social security (employer)
- ~40-45%
- Wealth tax
- IFI at 0.5-1.5% on net real-estate wealth above EUR 1.3m.
- Inheritance / estate
- Up to 45% in the direct line, rising to as much as 60% between unrelated persons.
- Property tax
- Taxe fonciere applies to owners. Taxe d'habitation has been abolished on primary residences.
- Other
- A high-income surtax, CEHR, of 3-4%, plus CSG/CRDS social levies on income.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- Yes, leaving has a cost
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
Impatriate regime (Art. 155 B CGI): the impatriation bonus is exempt, there is a 50% exemption on certain foreign passive income, and IFI is limited to French real estate, for up to 8 years.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (2)
Secondary references