The reasons that may lead individuals to transfer their tax residence outside France can vary, but in all cases, expatriates must ensure compliance with their French reporting obligations.
French law is indeed flexible, but with a touch of formality. Flexible, because a person wishing to leave France does not need any authorisation or clearance, and the transfer of residence can be carried out at any time during the year. Formal, because if the prospective expatriate has been a French resident for more than six years and holds financial assets above certain thresholds (shareholdings exceeding 50% or a securities portfolio worth more than €800,000), they must calculate the capital gains accrued on these assets and report them on a specific declaration (commonly referred to as the “exit tax” declaration), which must be renewed annually for two or five years following departure.
The expatriate must also file annual income and wealth tax returns in France if they retain French-source income (unless subject to a final withholding tax) or if they directly or indirectly own real estate in France valued at more than €1.3 million.
These annual returns will, of course, only include French-source income and real estate located in France, subject to the provisions of tax treaties signed by France, which may limit France’s taxing rights.
Article published in French in Le Monde on November 9, 2025
