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LIVING IN FRANCE

How to file your 2023 French income tax declaration

From who needs to complete it to what income you need to declare, here's your guide to the 2023 income tax declaration.

Published: 2 April 2020 12:56 CEST
Updated: 22 May 2023 09:54 CEST

How to file your 2023 French income tax declaration

It's tax time! Photo: AFP

Tax declarations in 2023 opened on April 13th, and you have until late May or early June (depending on where you live) to complete the declaration.

Do I have to do it?

Probably, yes. France’s tax system has everyone declare their taxes in the spring for the previous year. That means that your 2023 tax declaration is based on your 2022 income – the French tax year runs from January 1st to December 31st.

Previously everyone resident in France had to fill in the income tax declaration (déclaration des revenus) but that has recently begun to change, following the introduction of ‘taxing at source’ for employees.

This only affects employees, not self-employed or retired people, and only a few categories are concerned – if this affects you, you will receive a notification by email, or been exempt from last year’s declaration.

If you belong to this group but something has changed since your last fiscal declaration (anything at all – income levels, address or other) you will still need to declare your taxes.

Everyone else needs to fill in a declaration, even if you don’t earn any income in France (for example people who get a pension paid from another country).

Property tax declaration

Please note that the income tax declaration – déclaration des revenus – is not the same thing as the property tax declaration – déclaration d’occupation. The property tax declaration is a one-off form that must be filled in in 2023 by everyone who owns property in France, including those who live in another country.

Find full details on the property tax declaration HERE.

When is the deadline?

Tax declarations opened on April 13th

The deadline to have the return completed depends on where you live and how you file

Monday, May 22nd for people who do the declaration on paper – the process is now largely online but there are exemptions for people who do not have internet access, while most people filing for the first time will also file on paper. The declaration must be posted by the end of May 22nd
11.59pm on May 25th for non-residents and people who live in départements 1-19
11.59pm on June 1st for people who live in départements 20-54
11.59pm on June 8th for people who live in départements 55-96 and France’s overseas territories

Can I only do it online?

The government has vowed to render tax declarations paperless, although if you are filing a declaration for the first time you may have to do it on paper.

Exemptions for online filing include groups like elderly and people without internet access – for example those living in so-called ‘white zones’ – who may make their declarations on paper and send them in by post.

You can get your tax form at your local tax office, or download it and print it from the tax site.

If you are having trouble you may call 0809 401 401 for help.

First time declaring?

If this is your first year filing a tax declaration in France, you will first need to get a tax number (numéro fiscal) and then set up an online account on the tax website of impots.gouv.fr.

Once you have received the number, you then need to register with the tax website.

If you are already registered online for property taxes such as the taxe d’habitation, you use the same site.

Visit the site impots.gouv.fr and go to the section that says “votre espace particulier“.

This is where your recent declarations and tax bills will be found.

If you are not registered, you first need to set up your online account – head to impots.gouv.fr and click on votre espace particulier, if you have not created an account previously you will be given the option to set one up by entering details such as your name, address and social security number.

Once registered, head to the blue button ‘Accéder à la déclaration en ligne‘ to begin filling in the online form.

What do I need to declare?

Everything, basically.

People often assume that anything they have already declared to the tax authorities in their home country does not need to be included on the French tax form, but this is not the case.

The French taxman is asking for all of your assets, which includes income from rental properties in another country and income on financial products such as shares or ISAs in the UK.

All bank accounts must also be declared, even if they are dormant. New information-sharing rules between international banks mean that your bank can and will tell the French taxman what accounts you have in your home country, and if that information doesn’t match what is on your French declaration you could find yourself in trouble.

Tax credits are available against tax you have already paid in another country – so you don’t end up paying twice on the same income – but you must still declare it.

International tax specialist Jason Porter explains more here.

What if I forget something?

If you realise too late that you have made a mistake on your tax declaration, you have until mid December 2023 to correct it on the government’s website, impots.gouv.fr.

Taxed as a household

In France you are taxed by household. So if you are a married couple or if you are pacsé (in a civil partnership) then you should make one joint declaration rather than two. If you got married halfway through the year you can now declare one common declaration for the whole year.

And if you have any children living with you that are earning then you’ll need to declare their earnings too…and that includes any summer jobs.

Tax deductibles

There are some professionals, including journalists, who receive tax breaks from the French government.

The French can also claim tax breaks for house improvements, child care and gifting so it’s worth asking if you think you might be able to benefit. Find out more about the deductions available here.

Visit the English page of the tax authority’s website

The tax section is less labyrinthine than some French government websites, and there is a section in English.

This can be found here.

Member comments

Anonymous - 13 April 2020 at 21:33 CEST

What if I move to france in the middle of the tax year? Do I have to declare income before I arrive?
1. Anonymous - 23 March 2021 at 23:02 CET
  
  I have the same question.
Anonymous - 9 April 2021 at 22:58 CEST

What sterling – euro exchange rate should we use for 2020 tax year?

Become a Member to leave a comment.

6 pension questions British people should ask before retiring to France

Retiring to France is a dream for many, but before turning that dream into reality there are some serious financial questions that you need to ask yourself to ensure that your retirement is a financially comfortable one.

For most retirees, their main or only income will be a UK pension, so it’s important that you understand how your pension will work once you make the move.

There are some specific rules and restrictions on taking pensions out of the UK, while there is also the question of how UK pensions interact with the French tax system.

Financial adviser, Maeve Hoffman, from Spectrum IFA Group, emphasised that people should not take these decisions lightly, telling The Local: “Figuring out what to do with your pension should be part of your wider financial plans for your life.

“This may be your most important asset, besides your home, and the best answer for what to do with your pension is highly individual. There are no sweeping generalisations when it comes to advice on private pensions. Everyone’s situation is different,” she said.

This article is intended as an overview of how the system works for UK pensioners and is not intended as a substitute for individual financial advice. The article is aimed at people who have worked most or all of their career in the UK and then intend to retire in France – the situation is slightly different for people who work in France and then retire here.

You can find an overview on French tax rules for pensions HERE.

Long-term or short-term

The first thing you need to carefully consider is whether or not your move to France will be for the long-term or short-term.

When it comes to your UK pension, there are some options that may be advantageous for French residents looking to stay here permanently, but they could make your life very complicated if you end up returning to the UK in the future.

Do not be afraid to ask yourself the tough questions – is there any chance you will have grandchildren in the future that you will want to be geographically close to? Have you ever spent a significant time in France, aside from short holidays? Do you have roots in France, such as friends, family or a home? If your health deteriorates, will you want to be cared for in France or the UK?

If are unsure about the answers to these questions, then take some time to really think about them. There are alternatives to permanently moving to France if you are unsure – for example, you could spend a few months a year here on a short-term visitor’s visa.

Understanding the different tax rules

British retirees should be aware that the UK and France have very different tax systems.

Once you become a tax resident in France, you have to file a yearly declaration, including your global income. The country that gets to tax that income is determined based on the tax treaty between the UK and France, which seeks to eliminate double-taxation.

As for your UK-based pension, the treaty states that if you have a UK government or civil service pension (eg a state school teachers’ pension), then this will remain taxable only in the UK. Some old NHS pensions were considered ‘government pensions’, but modern ones might not be. You can check if your pension is classified as ‘government’ here.

You still have to declare this income to the French tax authorities, but you will not be subject to tax in France on it. That being said, it will count towards your total household income, and could end up pushing you into a higher tax bracket which is something you should carefully consider, particularly if you want to take a large sum at once.

The same is not true of private pensions: these are taxed in France, not the UK, as soon as you become a tax resident here. Confusingly, the UK state pension is also considered a private pension, even though it is paid by the government.

You can find a complete guide to how UK pensions are taxed in France HERE.

As a result, you will want to think about whether your previous plans for your private pension were only advantageous to you as a UK resident. Once you become a French tax resident, they could have unforeseen implications.

You can find more information about tax rates in our tax guide.

Get reliable, expert financial advice before doing anything

If you have decided you want to be in France permanently, then you will need some expert tax and pension advice – but you need to be careful who you take advice from, this is a highly specialist area and it’s unlikely that high street financial advisers will have the knowledge that you need.

Brexit has also made getting financial advice more complicated, with fewer experts available.

Maeve told us: “Because of Brexit, you cannot use a UK-based financial adviser anymore – you have to use an EU-registered one. This has made things more complicated. When picking an adviser, seek out someone who has expertise on the local taxation rules in France. They should also be regulated with the financial regulator where you live and where they work.”

It can be especially complicated to parse out who you can and cannot take advice from – for example, some UK-based advisers have continued to give advice to EU-based clients, even though this can be particularly risky if the investments they recommend do not follow EU regulations.

There are also expat-oriented financial advice services that are located outside of France, but seek to offer tax advice to people in France.

She added: “Be smart and sensible. If you choose an adviser in Dubai or Spain for example, you will now be adding another regulatory organisation into the mix, plus another language.

“There are free, government-based services in the UK that can help you understand your private pension – Pension Wise and Money Helper. Before doing anything, you should consult the free services. Any financial adviser worth their salt would recommend this too.

“These services have begun to have longer wait times, so be sure to book well in advance of when you plan to draw from your pension.”

Deciding whether to transfer your pension

Another question that is important for Brits to think about is whether or not to transfer their pension into either a UK-based SIPP for non-residents, or a QROPS (Qualifying Recognised Overseas Pension Schemes).

The SIPP will keep your pension in the UK, while the QROPS moves it out of the UK, to Malta specifically.

These options can be helpful for French residents, but you need to familiarise yourself with their benefits and drawbacks.

“The QROPS is not for someone who is unsure of their future in France, as if you return to the UK within five years of the pension transfer HMRC will seek their tax back as if it was a full encashment,” Maeve said.

In France, a QROPS is considered a trust, you may also have additional reporting requirements to fill out along with your annual declaration (more info here).

You should beware of scams on this subject, as the post-Brexit period saw many scammers seeking to persuade Brits that it was now mandatory to transfer their UK pension – always be wary of any cold-calling or unsolicited financial advice.

Determining how you will want to draw from your pension

The next question is how you want to receive your pension – either as regular income or as a lump sum. The option that you chose will have tax implications in France.

If you receive it as a regular income, when doing your yearly French tax declaration, you will add up your pension income for that year and you will be taxed at the normal marginal rates for income (the barème). These rates go up to 45 percent (for the highest earners only) plus social charges if they apply (more on this below).

Pension income can also benefit from a 10 percent tax deduction, as long as it does not exceed €4,123 or fall below €422 per household.

Lump-sums are more complicated. Technically, French tax authorities would allow a return of once off pension capital to be taxed at a flat rate of 7.5 percent.

But in reality, Hoffman explained that anyone seeking to do this would need the express, written confirmation from French tax authorities that this rate will be applied.

She also explained that the type of private pension matters when seeking to get the lump-sum flat rate.

“There are plenty of different types of private pensions in the UK, but the old ‘defined benefit schemes’ have been the gold-plated standard. These are the types of pensions that give you a portion of your salary for the rest of your life.

“In principle, you should be able to take out lump-sum of 25 percent of your ‘defined benefit scheme’ pension and be taxed at the 7.5 percent flat-rate. That being said, some people get refused, so you cannot make any assumptions and you need clarification from the French tax office.

“As for all of the other types of private pensions in the UK, like the money purchase or personal pension schemes, these are considered to be ‘funds’. If you want to benefit from the lump-sum then you would have to take out the entire pension. You would not be able to just take out 25 percent and get the lump-sum rate.

“For anyone considering taking their whole pension and seeking to use the 7.5 percent rate there are conditions to be met, so I advise people to write to their French tax office and explain their own situation in detail. Be sure to clarify the tax rate you are seeking to have applied and ask what documents they would need from your UK pension company to confirm that the contributions to this pension have been tax deductible.”

Healthcare and social charges

Deductions in France come in two types – impôts (income taxes) and prélèvements sociaux (social charges).

People who retire to France (and have never worked in France) and have already reached the state pension age can apply for the S1 – this means that the UK continues to pay for their healthcare costs and they would not be charged prélèvements sociaux. Non-working spouses of an S1 holder can also benefit from this.

People who take early retirement and make the move before they reach state pension age may have to pay social charges in addition to taxes until they reach the state pension age and can apply for their S1. However, there are several exemptions to social charges, so even if you expect a bill, you may not end up being charged. More information in our guide.

Social charges help pay for a lot of services from the French government, including access to healthcare. In France, you can access the state healthcare system (and get a carte vitale) after three months of residency.

READ MORE: Why you might get an unexpected French health bill

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