Do Expats Get a Tax Reduction in France? Understanding the Impatriate Tax Regime
If you moved to France from abroad to take up a job, you may be entitled to a French tax exemption on part of your employment income.
Under Article 155 B of the French Tax Code, the French impatriate tax regime (régime des impatriés) can provide a significant tax advantage to eligible employees.
Who can benefit?
You may qualify if you:
Were tax resident outside France during the five years before moving to France.
Were recruited directly from abroad by a French company, or transferred from a foreign company within the same group.
Were not already tax resident in France when you were recruited.
Moved your tax residence to France as part of taking up your position.
For example, someone who applied for a job in France while living abroad may potentially qualify.
However, someone who moved to France independently before finding a job will generally not qualify.
How does the tax exemption work?
There are two main ways the impatriate exemption can apply.
1. An actual impatriation bonus
If your employment contract or remuneration package includes a specific impatriation bonus, this bonus may be exempt from French income tax, subject to the applicable rules and limits.
2. The 30% flat-rate option
If there is no specific impatriation bonus, eligible employees can, under certain conditions, choose a flat-rate exemption of 30% of their net total remuneration.
For example, with €50,000 of net remuneration:
€50,000 × 30% = €15,000 potentially exempt from income tax.
The actual benefit depends on your personal situation and the applicable reference remuneration rules.
What about the reference remuneration?
The exemption is subject to a reference remuneration rule.
In simple terms, the amount remaining taxable in France must generally be at least equivalent to the remuneration paid for comparable functions in France.
This means that the full 30% exemption is not automatically available in every situation.
Can you claim it retrospectively?
Potentially, yes.
If you were eligible but did not claim the impatriate regime when you arrived in France, it may be possible to correct previous tax returns and request a refund of excess tax paid, provided the relevant claim deadlines have not expired.
This can be particularly interesting for people who moved to France several years ago and only recently discovered the regime.
How do you know if you qualify?
The impatriate regime can be very valuable, but eligibility depends on how you moved to France, your previous tax residence, your employment situation and your remuneration.
If you moved to France from abroad for work, it is worth checking whether you could benefit from the regime, even if your employment contract does not mention an impatriation bonus.
Need help determining whether you qualify?
Book a free introductory call to discuss your situation.
Disclaimer: This article is for general information and educational purposes only. It is based primarily on official French government sources and does not constitute personalised tax, legal or financial advice.
