How to Declare Foreign Investment Income in France: Dividends, Interest & Tax Credits (Expat Guide)

Are you a French tax resident who received dividends or interest on a securities or savings account held with a foreign bank or broker? That income has to be declared in France, even if the money never left the account abroad. It's a common blind spot, and the rules run through several forms, so here's how it actually works.

The French tax authorities tax income earned abroad by people resident in France, under Article 170 of the French General Tax Code. Where the money physically sits makes no difference.

Step 1: Fill in form 2047

In your online return, start by selecting the 2047 annex, the declaration of income received abroad.

You'll need to enter the country the dividends came from, the name of the company that paid them, the gross amount, any withholding tax already deducted abroad, the net amount you received, and the exchange rate used if the dividends were paid in a foreign currency. Form 2047 is required for foreign income, and it's also what lets the system work out any tax credit you're entitled to.

Step 2: Carry the total over to form 2042

Once the 2047 is done, the amount has to be reported on your main return, form 2042. The box generally used for dividends is 2DC (income from shares). Foreign investment income is reported in box 2DC or 2DE, depending on its nature and the tax treatment that applies.

Which amount do you declare? As a rule, you declare the gross amount, the dividend before the foreign withholding, whenever the tax treaty provides for a tax credit. For example: a gross dividend of €1,000 with €150 withheld abroad leaves €850 in your account, but the figure to declare in France may be €1,000, not €850, subject to the rules in the treaty between France and the country concerned.

Dividends vs interest: not the same box

This is where people slip up. Dividends and interest are both foreign investment income and both go through form 2047, but they don't land in the same box on the 2042.

Dividends, the income from shares in a company, are reported in box 2DC. Interest, the income from bonds, loans, term deposits or foreign savings accounts, goes in box 2TR instead. Putting interest in the dividends box (or the reverse) can lead the tax office to apply the wrong treatment, so it's worth separating the two before you file: total up your dividends on one side, your interest on the other, and report each in its own box. In both cases you still start from form 2047 and, where a treaty credit applies, claim it in the same way (typically box 8VL on the 2042-C).

One practical difference worth noting: dividends are more likely to have suffered a foreign withholding at source (and therefore to generate a tax credit), whereas interest is often paid gross, though this depends entirely on the country and the treaty.

Step 3: Claim the foreign tax credit

If tax was withheld abroad, a tax credit can sometimes prevent you being taxed twice on the same income.

The credit is generally reported on the complementary return, form 2042-C, in box 8VL for investment income and capital gains, or in another box depending on the mechanism set out in the applicable treaty. The amount depends on the country: it may equal the tax actually paid abroad, or a flat amount set by the treaty, and it's usually capped at the French tax due on that same income.

One thing to keep in mind: a foreign withholding isn't automatically recoverable in full. The rate deducted at source can exceed the rate the treaty allows, and only the treaty rate is creditable.

Don't confuse this with box 8UU

Declaring the dividends and declaring the foreign account are two separate obligations. If the securities account is held with an institution abroad, you also have to declare the account itself: tick box 8UU, complete form 3916-3916 bis, and file one declaration per account. This covers accounts opened, held, used or closed abroad, under Article 1649 A. Declaring the account does not replace declaring the dividends, you do both.

A worked example

Say a French tax resident holds a securities account with a US broker and receives €1,000 in gross dividends, with €150 of US withholding tax, leaving €850 credited to the account. They would generally declare the dividends on form 2047, carry the amount over to form 2042 (usually box 2DC), report the foreign withholding under the tax-credit section (usually box 8VL, according to the treaty), tick box 8UU, and complete form 3916-3916 bis to declare the foreign securities account.

Documents worth keeping

Hold on to your broker's annual tax statement, the breakdown of gross dividends, the amount of foreign withholding, proof of payment, the exchange rate used, and details of the country where the distributing company is resident. If the authorities ever ask, these are what back up your figures.

The takeaway

A foreign dividend or interest payment generally has to be declared on form 2047, carried over to form 2042 (dividends in box 2DC, interest in box 2TR), with any tax credit on form 2042-C (often box 8VL), and the foreign account declared separately through box 8UU and form 3916-3916 bis.

The exact treatment depends on where the dividends came from and the tax treaty that applies, so it's important not to rely only on the net amount that landed in your account.

Living in France and unsure about your tax obligations?

If you are an expatriate living in France and have questions about your French tax return, foreign income or the interaction between French taxation and your home country's tax system, you can book a free introductory call to discuss your situation and identify the key points that should be checked.

Disclaimer: This article is for general information and educational purposes only. It is based primarily on official French government sources and other trusted references. It does not constitute personalised tax, legal or financial advice. Tax filing obligations depend on individual circumstances, the country concerned and the applicable tax treaty.