France is infamous for being a high tax jurisdiction, but here are some considerations for newcomers which contradict this unfounded popular belief.
Impats are workers who newly arrive in France because they are recruited by a French employer, including via intergroup mobility. If their move is well-prepared, they can benefit from various income tax exemptions on their professional income including:
In addition, investment income sourced in their country of origin may benefit from a 50% income tax allowance, leading to an effective income tax rate of 23.6% incl. social security contributions.
Since 2018, wealth tax has focused only on real estate, whether held directly or through intermediate structures.
There are various exemptions that may apply, notably:
In addition, newcomers can benefit from an exemption of real estate located out of France during the first 5 years after their arrival in France.
Newcomers are usually settled with their family or parents outside of France before arriving.
If they benefit from a gift from a donor living outside of France where the gifted asset or right is also located outside of France, the beneficiaries can benefit from a full exemption of gift tax during the 6 years following their arrival, with no limitation as to the amount.
The same exemption may also apply for inheritance tax.
The US-French tax treaty allows US citizens and green card holders to benefit from tax allowances on US-sourced dividends, interest, capital gain and royalties. Those allowances are granted with no time limit.
France is just one of many places that has some great incentives for its residents and newcomers. What’s happening in your country?
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