A special expatriate exemption scheme exists to help attract company directors and employees to France by providing partial income tax exemption, subject to certain conditions and for a period of up to eight years.
When am I eligible?
The expat regime is designed for the following people :
– People living outside France at the moment they are recruited by a French company.
– People working for a company outside France who are sent by their company to work for a French company.
If you move to France on your own initiative and seek work, you are not eligible.
There are some conditions you have to fulfil to benefit from this regime.
– You must be a tax resident in France for tax purposes during the year in question.
– You have not lived in France during the 5 previous years.
What are the benefits ?
When you receive an expatriate bonus, it is completely tax free, provided that your basic salary is not lower than someone in a similar position. This bonus must be mentioned in your contract or in another form provided by the company concerned.
In other cases, you may benefit from a tax exemption of 30% of the total gross income. In this case it also have to be mentioned in your contract or another form that you benefit from this regime.
If you work abroad during the year, you may also receive a partial tax exemption on the income received while you were working abroad.
If you have any questions or need help filling out your tax forms, we are ready to help you.