Take the Stress Out of US Expat Taxes in France. Whether you’ve recently moved to France or have lived there for years, Universal Tax Professionals provides specialized US expat tax services to help you meet your filing obligations in both the US and France with confidence.
Quick Reference: US Tax Obligations for Americans in France
| Category | What You Need to Know |
| US Tax Filing | Annual Form 1040 filing is generally required for all US citizens and Green Card holders |
| French Tax Residency Rules | Based on your home, residence, work, or economic interests in France |
| French Income Tax Rates | Progressive income tax rates from 0% to 45%, plus applicable social contributions |
| Double Tax Relief | The Foreign Tax Credit (Form 1116) is often the preferred option |
| FBAR Reporting | Required if foreign accounts exceed $10,000 combined during the year |
| FATCA Reporting | Single: $200,000/$300,000 & Joint: $400,000/$600,000 |
| US–France Tax Treaty | Helps reduce double taxation while preserving US filing obligations |
| Social Security Coverage | The Totalization Agreement helps prevent dual Social Security taxes |
| French Income Tax Filing Deadline | Generally, May–June, depending on your department |
| US Filing Deadline | June 15 automatic; October 15 with an extension |
French Tax Residency Rules
Determining your French tax residency is one of the first steps after moving to France. Your residency status determines whether France generally taxes either your French-source income or your worldwide income, depending on your residency status.
How France Determines Tax Residency
France generally considers you a tax resident if any one of the following conditions applies:
Your Permanent Home Is in France
If your main home (foyer) is in France, you may be treated as a French tax resident even if you regularly travel or spend time abroad.
France Is Your Main Place of Residence
You may qualify as a tax resident if France is where you normally live and spend most of your time during the year.
Your Primary Work Is in France
If your main employment, self-employment, or business activity is carried out in France, you may be considered a French tax resident.
Your Economic Interests Are Centered in France
You may also become a tax resident if France is where your principal income is earned, your investments are managed, or your main financial interests are located.
If you meet any one of these conditions, France may treat you as a tax resident and generally tax your worldwide income. Tax relief may still be available through the US–France Income Tax Treaty and other provisions designed to reduce double taxation.
Once You’re a French Tax Resident
Individuals who are considered French tax residents generally file an annual French income tax return reporting their worldwide income.
Non-residents may also need to file a French tax return if they receive taxable income from French sources, such as:
- Employment income earned in France
- Income from French rental property
- Certain business income
- Capital gains or other taxable French-source income
Your filing requirement depends on your residency status, the type of income you receive, and the applicable French tax rules.
The French Tax Year
France generally follows the calendar year, with income earned between January 1 and December 31 reported on the following year’s tax return.
Most employees pay income tax through pay-as-you-earn withholding (prélèvement à la source) during the year. Even so, many taxpayers must still file an annual income tax return to report their income, claim deductions or credits, and reconcile the tax already withheld.
Unsure About Your French Tax Residency?
Your residency status affects both your French and US tax obligations. Our team helps Americans in France determine their tax residency and stay compliant.
French Income Taxes and Other Taxes
France uses a progressive income tax system, which means different portions of your taxable income are taxed at different rates. If you’re a French tax resident, you’ll generally pay tax on your worldwide income. Non-residents are generally taxed only on French-source income.
In addition to income tax, you may also be subject to social contributions, property taxes, and other taxes depending on your financial situation.
French Income Tax Rates
| Taxable Income (EUR) | Tax Rate |
| Up to €11,497 | 0% |
| €11,498 – €29,315 | 11% |
| €29,316 – €83,823 | 30% |
| €83,824 – €180,294 | 41% |
| Over €180,294 | 45% |
How France’s Progressive Tax Rates Work
Although the highest marginal rate is 45%, most taxpayers pay a lower effective tax rate because France taxes income progressively. Each tax rate applies only to the portion of income within that bracket, not to your entire income.
| Annual Taxable Income | Marginal Tax Rate | General Outcome |
| €25,000 | 11% | Most income is taxed at the lower rates |
| €60,000 | 30% | Only income above the 30% threshold is taxed at 30% |
| €120,000 | 41% | Higher earnings move into the 41% bracket, not the full income |
| €220,000 | 45% | Only the portion above €180,294 is taxed at 45% |
Social Contributions
In addition to income tax, France may impose social contributions (prélèvements sociaux) on certain types of income, including employment income, pensions, investment income, and rental income.
Whether these contributions apply depends on your residency status, the type of income you receive, and whether you’re covered by the US–France Totalization Agreement.
Other French Taxes Americans in France Should Know
Depending on your circumstances, you may encounter other taxes while living or investing in France.
| Tax | How It Applies |
| Property Tax (Taxe Foncière) | No fixed national rate. Calculated using the property's cadastral rental value and local tax rates, which vary by municipality |
| Capital Gains Tax | Generally taxed at 19%, plus 17.2% social contributions on most taxable real estate gains, subject to exemptions and reductions based on ownership period |
| Rental Income Tax | Taxed at the applicable French income tax rates (0%–45%), depending on your taxable income and residency status. Rental income must also be reported on your US tax return |
| Inheritance and Gift Tax | Progressive rates generally range from 5% to 60%, depending on the relationship between the parties and the value transferred |
| Real Estate Wealth Tax (Impôt sur la Fortune Immobilière – IFI) | Applies to certain real estate assets exceeding €1.3 million. Progressive rates range from 0.5% to 1.5% |
| Value-Added Tax (TVA) | Standard VAT rate is 20%. Reduced rates of 10%, 5.5%, and 2.1% apply to certain goods and services |
Buying or Selling Property in France
Owning property in France can create tax obligations in both France and the United States.
If you rent out French property, the rental income is generally taxable in France and must also be reported on your US tax return. Likewise, selling French real estate may trigger capital gains tax in France, and the sale may also need to be reported to the IRS.
Depending on your circumstances, the Foreign Tax Credit and the US–France Income Tax Treaty may help reduce double taxation.
French Tax Reliefs
France offers several tax reliefs that may reduce your French income tax liability. While these benefits generally do not change your US filing obligations, they can affect your overall tax planning.
| Tax Relief | What You Should Know |
| Impatriate Tax Regime | Eligible employees relocating to France may qualify for partial tax exemptions on certain employment income and qualifying foreign-source income. |
| Family Quotient (Quotient Familial) | France's household-based tax system may reduce income tax for taxpayers with qualifying dependents. |
| Tax Credits and Deductions | Certain expenses, such as childcare, charitable donations, home services, education, and qualifying home improvements, may reduce your French tax liability. |
France’s Household Tax System
Unlike the United States, France generally calculates income tax at the household level through the family quotient (quotient familial) system.
Rather than taxing each individual separately, France considers the size of your household when calculating income tax. Depending on your family situation, this may reduce your overall French tax liability.
Who Must File a US Tax Return While Living in France?
Moving to France generally does not end your US tax filing obligations. US citizens and Green Card holders may still need to file an annual US federal income tax return, even if they pay taxes in France or owe little to no US tax.
Your filing requirement depends on factors such as your income, filing status, and the types of assets you own.
Who Generally Needs to File?
| Taxpayer | General Filing Requirement |
| US Citizens | Generally, if your income is over the IRS filing threshold, you must file a US tax return no matter where you reside |
| Green Card Holders | Generally, US tax filing requirements apply until Green Card status is formally abandoned or terminated |
| Dual US–French Citizens | Generally, continue filing US tax returns while also meeting their French tax obligations |
| Employees Working in France | May need to report wages earned from a French employer on their US tax return |
| Self-Employed Individuals | May need to report business income and satisfy additional US filing requirements |
| Individuals with French Financial Accounts or Investments | May have additional reporting obligations, including the FBAR, Form 8938, or Form 8621, depending on their circumstances |
State Tax Considerations
Moving to France does not automatically end your state tax obligations. Some states continue to treat former residents as state taxpayers if they maintain sufficient ties, such as property, voter registration, or other connections.
If you recently moved from a US state that imposes income tax, it’s worth confirming whether you still have a state filing requirement.
French Tax Documents You’ll Need for Your US Tax Return
Preparing your US tax return is much easier when you have your French tax records organized. Depending on your situation, you may need documents from both the French and US tax systems.
| Document | Why You'll Need It |
| Avis d'Impôt sur le Revenu (Annual Income Tax Assessment) | Confirms your French tax assessment and taxes paid |
| Déclaration des Revenus (Annual Income Tax Return) | Shows the income reported to the French tax authorities |
| Bulletins de Paie (Payslips) | Verifies employment income and French tax withholding |
| Imprimé Fiscal Unique (Annual Investment Income Statement) | Reports dividends, interest, capital gains, and other investment income |
| Relevés Bancaires (Bank Statements) | Help determine whether FBAR or FATCA reporting applies |
| Relevés de Retraite (Retirement Statements) | Support reporting of pension or retirement income |
| Business Records | Used to report self-employment or business income and prepare any required IRS information returns |
Reporting Income in US Dollars
Although your income and taxes are generally paid in euros, US tax returns must be prepared in US dollars. Income, taxes paid, and other reportable amounts should generally be converted using an appropriate IRS-accepted exchange rate.
Keeping accurate records throughout the year can make this process much simpler.
Need Help Preparing Your US Tax Return?
Whether you’re new to France or have lived abroad for years, Universal Tax Professionals helps you file accurately and stay compliant with US tax requirements.
Managing Double Taxation Between France and the United States
One of the biggest concerns for Americans moving to France is whether they’ll pay tax twice on the same income. While both France and the United States may tax certain income, several US tax provisions can help reduce or eliminate double taxation.
For many Americans living in France, the Foreign Tax Credit (FTC) is often the most beneficial option because French income tax rates are generally higher than US tax rates. Depending on your circumstances, you may also qualify for the Foreign Earned Income Exclusion (FEIE) or benefit from the US–France Income Tax Treaty.
Foreign Tax Credit (FTC)
The Foreign Tax Credit (Form 1116) allows eligible taxpayers to claim a credit for certain income taxes paid to France, helping reduce US tax on the same income.
Because French income tax rates are often higher than those in the United States, many Americans living in France use the Foreign Tax Credit to offset their US tax liability. In some cases, unused foreign tax credits may also be carried forward to future tax years, subject to IRS rules.
Foreign Earned Income Exclusion (FEIE)
The Foreign Earned Income Exclusion (Form 2555) allows qualifying Americans living abroad to exclude up to the annual IRS limit of foreign earned income from US taxation.
To qualify, you generally must meet one of the following tests:
Physical Presence Test: Spend 330 full days in one or more foreign countries during any 12-month period. The days do not need to fall within a single calendar year.
Bona Fide Residence Test: Establish France as your genuine place of residence for an uninterrupted period that generally includes an entire tax year. The IRS considers your overall ties to France, not just the number of days you spend there.
The Foreign Earned Income Exclusion can significantly reduce taxable earned income, but it isn’t always the most beneficial option. Many Americans compare it with the Foreign Tax Credit before deciding which approach best fits their situation.
Foreign Tax Credit vs. Foreign Earned Income Exclusion
| Foreign Tax Credit (FTC) | Foreign Earned Income Exclusion (FEIE) |
| Claims a credit for eligible French income taxes paid | Excludes qualifying foreign earned income from US taxation |
| Often beneficial when French taxes exceed US tax | May benefit taxpayers with qualifying earned income |
| Unused credits may generally be carried forward | Does not create foreign tax credit carryforwards |
| Can apply to different categories of income, subject to IRS rules | Applies only to qualifying earned income |
The US-France Income Tax Treaty
The US–France Income Tax Treaty helps coordinate the tax systems of both countries and determines how certain types of income may be taxed. Depending on your situation, the treaty may affect the taxation of employment income, pensions, investment income, business profits, and other cross-border income.
Although the treaty can reduce double taxation in many situations, it generally does not eliminate the US tax filing obligations of US citizens and Green Card holders.
The Treaty May Apply To:
- Employment income earned while working in France.
- Pension and retirement income, depending on the type of pension and applicable treaty provisions.
- Investment income, including certain dividends, interest, and royalties.
- Business income, particularly when determining whether a permanent establishment exists.
Claiming Treaty Benefits
Some treaty provisions apply automatically, while others require additional reporting with your US tax return.
Depending on the treaty position you claim, you may also need to file Form 8833 (Treaty-Based Return Position Disclosure) with the IRS.
The treaty includes a Saving Clause, which generally allows the United States to continue taxing its citizens and Green Card holders. As a result, most Americans living in France must continue filing annual US tax returns even when treaty benefits apply.
The US-France Totalization Agreement
The US–France Totalization Agreement helps prevent workers from paying Social Security taxes to both countries on the same earnings. It also allows eligible workers to combine coverage credits earned in the United States and France when qualifying for certain retirement, disability, or survivor benefits.
Unlike the US–France Income Tax Treaty, the Totalization Agreement applies only to Social Security coverage and benefits. It does not determine how your income is taxed.
When Does the Totalization Agreement Apply?
Whether you’re covered by the US or French Social Security system depends on your employment situation.
Temporary Work Assignments
If you’re temporarily assigned to work in France for five years or less, you can generally remain covered under the US Social Security system instead of contributing to the French system.
Long-Term Employment in France
If you move to France on a long-term or permanent basis, you’ll generally become subject to the French Social Security system.
Self-Employment
Self-employed individuals are generally covered by the Social Security system of the country where they conduct their business activities, although exceptions may apply under the agreement.
Working in Both Countries
If you don’t have enough work credits under one country’s system to qualify for certain benefits, the agreement may allow eligible coverage periods from both countries to be combined.
Certificate of Coverage
A Certificate of Coverage confirms which country’s Social Security system applies to your employment and helps prevent duplicate Social Security contributions.
| If You're Covered By | What Generally Happens |
| US Social Security | Request a Certificate of Coverage from the US Social Security Administration before or during your assignment in France |
| French Social Security | The appropriate French authority generally issues a Certificate of Coverage based on your employment circumstances |
France and US Tax Filing Deadlines
Living in France often means filing tax returns in both France and the United States. Keeping track of each country’s deadlines can help you avoid unnecessary penalties and interest.
French Tax Filing Deadlines
France’s annual income tax return (Déclaration des Revenus) is generally filed each spring for the previous tax year. Filing deadlines vary depending on your department of residence and whether you file online or by paper.
| Typical Timeline | What It Covers |
| April | Online filing generally opens |
| May | Paper filing deadline (where available) |
| May–June | Online filing deadlines vary by department |
US Tax Filing Deadlines for Americans in France
US citizens and Green Card holders living in France generally receive an automatic two-month extension to file their federal income tax return. However, any tax due is still generally payable by the standard April deadline.
| Deadline | What It Covers |
| April 15 | Standard US tax payment deadline |
| June 15 | Automatic filing extension for Americans living abroad |
| October 15 | An extended filing deadline after requesting an extension |
Reporting French Financial Accounts to the IRS
Opening a French bank account is often one of the first financial steps after moving abroad. Depending on the value and type of accounts you own, you may also have US reporting obligations that are separate from your annual tax return.
The two most common reporting requirements are the Report of Foreign Bank and Financial Accounts (FBAR) and Form 8938, which is filed under the Foreign Account Tax Compliance Act (FATCA).
FBAR (FinCEN Form 114)
If the combined value of all your foreign financial accounts exceeds $10,000 at any time during the calendar year, you generally must file an FBAR (FinCEN Form 114).
The $10,000 threshold applies to the combined highest balance of all your reportable foreign financial accounts—not to each account individually.
The FBAR is filed electronically with the Financial Crimes Enforcement Network (FinCEN) and is separate from your US federal income tax return.
French Financial Accounts That May Be Reportable
| Account Type | Potential US Reporting |
| Compte Courant (Current Account) | FBAR and/or FATCA |
| Livret A & Other Regulated Savings Accounts | FBAR and/or FATCA |
| Compte-Titres (Investment Account) | FBAR, FATCA, and additional IRS forms may apply |
| Plan d'Épargne en Actions (PEA) | FBAR, FATCA, and possible additional reporting |
| Assurance-Vie | FBAR, FATCA, and possible additional reporting |
| Joint Accounts | Reportable based on ownership |
| Accounts with Signature Authority | Reportable based on ownership |
FATCA (Form 8938)
Some Americans living in France may also have FATCA reporting obligations and need to file Form 8938 (Statement of Specified Foreign Financial Assets) with their US tax return.
Unlike the FBAR, Form 8938 is filed with your federal income tax return and applies to specified foreign financial assets. The filing thresholds are generally higher than the FBAR thresholds.
| Filing Status | Reporting Threshold |
| Single or Married Filing Separately | More than $200,000 at year-end or $300,000 at any time during the year |
| Married Filing Jointly | More than $400,000 at year-end or $600,000 at any time during the year |
FBAR vs. FATCA
Although the FBAR and FATCA often apply to the same taxpayers, they serve different purposes and have separate filing requirements.
| Requirement | FBAR | FATCA (Form 8938) |
| Filed With | FinCEN | IRS |
| Reports | Foreign financial accounts | Specified foreign financial assets |
| Threshold | Combined foreign account balances over $10,000 | Higher thresholds based on filing status |
| Filed With Your Tax Return | No | Yes |
Need Help With FBAR or FATCA?
French financial accounts may require additional US reporting. Universal Tax Professionals helps Americans in France file accurately and stay compliant.
French Investments and PFIC Rules for US Expats
Investing while living in France can create additional US tax reporting obligations. Although many French investment products receive favorable tax treatment under French law, they may be treated differently by the IRS.
Before investing, it’s important to understand how a particular investment is classified under US tax law and whether additional reporting is required.
| French Investment | US Reporting | PFIC Risk |
| Fonds Communs de Placement (FCP) & Société d'Investissement à Capital Variable (SICAV) | Form 8621, FBAR, FATCA | High |
| Undertakings for Collective Investment in Transferable Securities (UCITS) Funds & ETFs | Form 8621, FBAR, FATCA | High |
| Assurance-Vie | FBAR, FATCA, and possible additional reporting | Possible |
| Plan d'Épargne en Actions (PEA) | FBAR, FATCA, and possible Form 8621 | Possible |
| Compte-Titres (Compte-Titres Ordinaire) | FBAR and FATCA may apply | Depends on the investments held |
| Individual Stocks | FBAR and FATCA may apply | Generally None |
What Is a PFIC?
A Passive Foreign Investment Company (PFIC) is a foreign corporation that meets certain income or asset tests under US tax law. Many non-US mutual funds and pooled investment products fall into this category.
If you own a PFIC, you may need to file Form 8621 with your US tax return. Depending on the investment and your elections, PFICs can also result in more complex tax calculations.
If an investment is classified as a PFIC, elections such as the Qualified Electing Fund (QEF) Election or the Mark-to-Market Election may affect how the investment is taxed in the United States. These elections have specific eligibility requirements and long-term tax implications, so it’s generally advisable to review your options before making an election.
French Pensions and Retirement Accounts
French pensions can play an important role in your retirement planning, but they may also create additional US tax reporting obligations. Whether you participate in the French public pension system, supplementary pension schemes, or voluntary retirement savings plans, understanding how these accounts are taxed in both countries can help you stay compliant and avoid surprises.
| French Pension or Retirement Plan | General US Reporting | Key Consideration |
| French State Pension (Régime Général) | Report on US tax return | Tax treatment may depend on the US–France Income Tax Treaty |
| AGIRC-ARRCO (Supplementary Pension) | Report on US tax return | Treaty provisions may affect taxation |
| Plan d'Épargne Retraite (PER) | FBAR and FATCA may apply | US tax treatment may differ from French tax treatment |
| Plan d'Épargne Entreprise (PEE) | FBAR and FATCA may apply | Employer savings plans may have additional US reporting requirements |
| US Social Security Benefits | Report on US tax return | Taxation depends on the treaty and your residency status |
Business Ownership and Self-Employment in France
Starting or operating a business in France can create additional US tax reporting requirements. The type of business structure you choose may affect how your income is taxed and which IRS forms you need to file.
| Business Structure | US Reporting | Key Consideration |
| Auto-Entrepreneur (Micro-Entrepreneur) | US tax return | Simplified French regime |
| Entreprise Individuelle (Sole Proprietorship) | US tax return | Income reported by the owner |
| Entreprise Unipersonnelle à Responsabilité Limitée (Single-Member LLC) | Additional IRS forms | US classification matters |
| Société à Responsabilité Limitée (Limited Liability Company) | Form 5471 | May be treated as a foreign corporation |
| Société par Actions Simplifiée (Simplified Joint-Stock Company) | Form 5471 | Additional corporate reporting may apply |
| Société en Nom Collectif (General Partnership) | Form 8865 | Depends on ownership structure |
| French Branch of a Foreign Company | Additional IRS forms | May create a permanent establishment |
The way your business is classified for French tax purposes may differ from its treatment under US tax law. This can affect both your tax liability and your US reporting obligations.
Missed US Tax Filing While Living in France? Catch Up with Confidence
IRS Streamlined Foreign Offshore Procedures for Americans in France
If you have fallen behind on your US tax filings while living in France, you may still be able to become compliant. The IRS Streamlined Foreign Offshore Procedures (SFOP) are available to eligible taxpayers whose failure to file was non-willful.
Under the Streamlined Foreign Offshore Procedures, eligible taxpayers generally submit:
- Three years of delinquent or amended US federal income tax returns for the most recent years required by the IRS.
- Six years of delinquent FBARs (FinCEN Form 114), if required.
- Form 14653 (Certification by U.S. Person Residing Outside of the United States), certifying that the failure to file was non-willful.
The Streamlined Foreign Offshore Procedures are available only to eligible taxpayers who meet the IRS requirements. Completing the required filings may allow eligible taxpayers to become compliant while potentially avoiding certain penalties.
Behind on Your US Tax Filings?
Universal Tax Professionals helps eligible Americans in France use the IRS Streamlined Filing Compliance Procedures to get back on track.
Tax Solutions Designed for Americans in France
US expat taxation requires more than preparing a standard tax return. Americans living in France often need guidance on the US–France Income Tax Treaty, the Foreign Tax Credit, French pensions, FBAR and FATCA reporting, PFIC rules, and IRS international information returns.
At Universal Tax Professionals, every engagement is handled by an experienced CPA or Enrolled Agent who specializes in US expat taxation. We help Americans in France stay compliant with both US and French tax obligations while minimizing unnecessary tax and reporting issues.
Experience the Universal Tax Professionals Difference
Navigate Two Tax Systems With Confidence
Whether you’re working, retiring, investing, or running a business in France, we help you meet your US tax obligations while minimizing unnecessary reporting issues.
Experience With Complex International Tax Matters
We regularly assist clients with French pensions, Assurance-Vie policies, PFIC reporting, business ownership, treaty benefits, and international information returns.
Compliance Without the Guesswork
We help identify potential filing obligations before they become costly compliance issues.
Clear Advice. No Surprises.
From your first consultation to filing your return, you’ll receive straightforward guidance, transparent pricing, and responsive support.
Hear from Americans Abroad Who Trust Universal Tax Professionals
Find out why Americans living in France choose Universal Tax Professionals for their US expat taxes. See our 4.9-star rating on Google Reviews and Trustpilot:
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“You’ll be glad you chose them for your taxes
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We’re so glad to have found John & would recommend UTP anyone.”
– Lex P. (Trustpilot Review)
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“Super quick, friendly and efficient service!
I have a rather complicated tax situation, having dual nationality, living in Europe, but working for a US-based company. Josh and his team worked quickly to get my tax documents in order and filed with the IRS. Would highly recommend them to anyone living overseas!”
– Per O. (Trustpilot Review)
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“I highly recommend Universal Tax Professionals. I live in Europe but as a USA citizen I have to file both USA and European tax returns. Sofia filed my USA tax return but she also has knowledge of foreign tax return filings and international tax treaties. She communicated and coordinated the tax filings with my European tax consultant. I received very good advice and guidance from her even for future tax filings. The tax filing was done very professionally and timely. Communication was very professional and timely! Highly recommended!”
– Han V. (Google Review)
