2025 Tax Return for Non-Residents in France

Each year, the French tax filing season opens in spring and concerns several million taxpayers. For expatriates and non-residents, this exercise takes on a particular dimension: it is not simply a matter of declaring, but of understanding precisely what remains taxable in France despite residence abroad. Contrary to a widespread idea, leaving France does not mean leaving the French tax scope. As soon as you receive French-source income or hold assets located in France, you remain concerned. In a context of strengthened controls and increasing complexity of the rules, a rigorous reading of the tax framework is essential.

What income is taxable in France for a non-resident for tax purposes?

The notion of tax residence is defined by Article 4 B of the French General Tax Code. In the absence of a home, principal activity or centre of economic interests in France, you are considered a non-resident.

This does not exempt you from French tax.

France retains a right to tax French-source income, according to a structuring principle: the place where the income is generated most often determines the place of taxation.

Property taxation for non-residents: rental income and capital gains

In practice, this is the central subject, particularly for owners of an apartment in Paris or a rental investment in France.

Rental income

Rents from a property located in France remain taxable:

• Unfurnished rental: property income
• Furnished rental: industrial and commercial profits regime

Property capital gain

In the event of a sale:

• Tax rate: 19%
• Social contributions: in principle 7.5% for residents of the European Union or the European Economic Area, subject to evolving case law
• Progressive allowances according to the holding period

Key point: non-residents do not systematically benefit from the same exemptions as residents.

Inheritance: taxation that is often underestimated

Three main situations:

• Deceased person who was a French tax resident
  → taxation on the entire worldwide estate
• Heir who is a French tax resident
  → taxation including assets located abroad
• Deceased person and heir who are non-residents
  → taxation limited to assets located in France

In practice, these rules regularly lead to unexpected French taxation.

Public income and pensions

Income paid by the French State remains, except in the case of a treaty exception, taxable in France:

• Civil servant salaries
• Public pensions

This principle is based on the logic of the paying State.

Financial income: dividends and interest

French-source investment income is subject to withholding tax:

• Standard rate: 12.8%
• Possible adjustment through tax treaties

A treaty-based analysis is essential to avoid double taxation.

Activities carried out in France

Any activity physically carried out in France is taxable in France:

• Consulting
• Conferences
• Artistic activities

The determining criterion is the place where the service is performed.

Tax treaties: a strategic lever

France has a network of more than one hundred international tax treaties.

They make it possible:

• to determine tax residence
• to allocate the right to tax
• to avoid double taxation

Tax treaties take precedence over French domestic law.

Which tax regime should be chosen?

2025 tax return: practical obligations

The return relates to 2024 income.

Main forms:

• 2042
• 2042-NR
• 2044

Frequent difficulties:

• Access to online services
• Interpretation of treaties
• Deadlines

An error may lead to reassessment or penalties.

Non-resident taxation FAQ

Conclusion

Being a non-resident does not mean being outside the French tax scope.

The applicable taxation is more technical and requires a structured approach.

An effective strategy is based on:

• understanding the rules
• analysing tax treaties
• anticipating property operations

Strategic real estate reading

For a non-resident, taxation directly influences:

• profitability
• sale timing
• estate structuring

At Fairway Luxury Real Estate, these parameters are integrated upstream of any decision.