Do I have to declare my foreign pension in France if I am tax resident?

Yes. French tax residents must declare their worldwide income, including foreign state, workplace, and private pensions, using Form 2042 and Form 2047. Double taxation treaties determine whether the income is taxed directly in France or receives a foreign tax credit.

Do I need to declare bank accounts held outside France?

Yes. French tax residents are legally required to declare all overseas bank accounts, digital accounts, and foreign life insurance policies annually using Form 3916/3916-bis along with their main income tax declaration.

What is the difference between micro-BIC and the régime réel for gîte income?

Micro-BIC applies a flat-rate deemed expense allowance (e.g. 50% for standard furnished rentals or higher for classified meublé de tourisme) without requiring detailed accounting. The régime réel allows full deduction of actual expenses, mortgage interest, and building depreciation (amortissement).

How does the French household quotient familial work?

Unlike individual tax filing in many countries, French income tax is calculated on the total household (foyer fiscal) income divided by the number of parts (quotient familial) determined by marital status and dependent children.

French Tax Guidance for Expats: Understanding Tax in France

Moving to France can make life wonderfully simple in some ways. Tax is usually not one of them.

For British and other international residents, understanding the French tax system can be particularly confusing because your tax obligations may depend on where you live, where your income comes from, what property you own, and whether another country also has a claim on that income.

This guide explains the main French tax issues that expats and international property owners should understand, including French tax residency, income tax, overseas income, property income, holiday lets, capital gains, local property taxes and working as a self-employed person in France.

It is designed as a practical starting point, not a substitute for personalised tax advice.

First: Are You a French Tax Resident?

One of the most important questions is whether you are considered fiscally resident in France.

This is not necessarily determined simply by having a French address or owning a property in France.

Under Article 4 B of the French General Tax Code (Code Général des Impôts), you are generally considered a French tax resident if you meet any one of the following criteria:

Your primary permanent home or main family residence (foyer) is in France.
Your principal place of physical stay (lieu de séjour principal) is in France (typically spending more than 183 days in France in a calendar year).
You carry out your principal professional activity in France (unless non-remunerated or ancillary).
France is the center of your vital economic interests (the location of your principal assets, investments, or business activities).

French domestic tax rules must always be considered alongside the relevant double-taxation treaty between France and your home country (e.g. UK, US, Canada, Australia, Ireland).

What Does Being Tax Resident in France Mean?

Broadly, people who are tax resident in France are subject to French income tax on their worldwide income, subject to international tax treaties.

That includes:

Employment and self-employment income
State, workplace, and private pensions
Worldwide rental and property income
Dividends, interest, and investment capital gains
Royalties, business profits, and trust distributions

Declaring Foreign-Source Income (Form 2047)

French residents who receive foreign income must report it using the supplementary Form 2047 (Déclaration des revenus encaissés à l'étranger) alongside the main Form 2042.

Important: The fact that you have already paid tax in the UK, US, or another country does not mean you can ignore that income in France. Worldwide income must be reported; double-tax treaty mechanisms (tax credits or exemption with progression) will then be applied to prevent double taxation.

What If You Are a Non-Resident?

Non-residents who own French property or have French economic interests are taxable in France on their French-source income, including:

Rental income from French property
Capital gains (plus-values immobilières) on the sale of French property or shares in property companies
Business income generated from a permanent establishment in France
Certain French pensions or employment exercised in France

French Income Tax: Household Taxation & Quotient Familial

French income tax is assessed on the entire household (foyer fiscal), not on individuals separately:

Spouses and PACS partners file a joint tax return.
The total household income is divided by the number of parts determined by the quotient familial (e.g. 2 parts for a married couple without dependents; 2.5 parts with one child; 3 parts with two children; 4 parts with three children).
Progressive income tax brackets are applied to the income per part, and the resulting tax is multiplied back by the number of parts. This progressive mechanism significantly reduces tax liability for families.

The Annual French Tax Return Architecture

The French tax filing window opens annually in April/May via the official portal (impots.gouv.fr):

Form	Purpose
Form 2042	Principal income tax return (salaries, pensions, general deductions)
Form 2042-C-PRO	Self-employed, micro-entrepreneur, and non-salaried business profits (BIC / BNC)
Form 2047	Foreign-source income (UK pensions, foreign dividends, overseas rental income)
Form 2044 / 2042-RICI	Unfurnished property rental income & tax credits
Form 3916 / 3916-bis	Mandatory annual declaration of foreign bank accounts, fintech accounts (Revolut, Wise), and overseas life insurance

Foreign Pensions: State, Workplace & Private

For international retirees in Southwest France (Dordogne, Lot-et-Garonne, Gironde):

UK State Pensions & Private/Workplace Pensions: Generally taxable in France under the France-UK Double Taxation Convention. They are subject to French income tax at progressive rates, but exempt from CSG/CRDS social charges if the individual holds a valid Form S1 health entitlement.
UK Government Service Pensions (Police, Armed Forces, Civil Service, Local Government): Remain taxable in the UK, but must still be declared on Form 2047 and 2042 to calculate the overall effective tax rate (taux effectif) and receive a corresponding French tax credit.

Property Taxation in France

1. Taxe Foncière

An annual local property ownership tax payable by whoever owns the property on January 1st of the tax year. Rates vary widely by commune and department.

2. Taxe d'Habitation

Abolished for principal residences, but remains payable on second homes (résidences secondaires) and vacant properties.

3. Capital Gains (Plus-Values Immobilières)

Principal Residence: 100% exempt from French capital gains tax.
Second Homes & Rental Property: Subject to income tax (19%) and social charges (17.2%), with progressive tapering relief starting after 5 years of ownership: full income tax exemption after 22 years, and full social charges exemption after 30 years.

Gîte & Furnished Holiday Rental Taxation (LMNP / BIC)

Rental income from furnished holiday homes is classified as commercial business profit (BIC - Bénéfices Industriels et Commerciaux):

Micro-BIC: Simplified flat-rate deemed expense allowance.
Standard unclassified furnished rentals: 50% flat-rate deduction.
Officially classified Meublé de Tourisme (stars 1-5): Enhanced flat-rate deduction subject to statutory turnover limits.
Régime Réel (LMNP): Highly advantageous for properties with substantial mortgages, renovation works, or high operating costs. It allows deduction of actual expenses and annual structural building depreciation (amortissement), frequently reducing taxable income to zero for many years.

Self-Employment & The Micro-Entrepreneur Regime

If you work as a freelance consultant, artisan, or small business owner in France:

Micro-entrepreneur (Auto-entrepreneur): Simplified registration, pay-as-you-go social contributions calculated as a flat percentage of gross turnover (chiffre d'affaires), and optional flat-rate tax withholding (versement libératoire).
Turnover Thresholds: Capped annually for service activities (BNC/BIC services) and goods sales. Exceeding thresholds triggers a transition to standard corporate/individual accounts (régime réel).

Mandatory Declaration of Foreign Bank Accounts (Form 3916)

Every French tax resident must declare all bank accounts, investment accounts, and digital financial accounts (including PayPal, Wise, Revolut) opened, used, or closed outside France during the tax year.

Failure to report an overseas account carries a statutory penalty of €1,500 per undeclared account per year (€10,000 if the account is located in a non-cooperative jurisdiction).

Expat Tax Checklist: Documents to Assemble

French Tax Number (Numéro Fiscal) and login to impots.gouv.fr
P60, annual pension statements, or foreign income certificates
Details of all overseas bank accounts (IBAN, BIC, bank name, opening date)
Gross rental turnover and itemised expense receipts for gîtes / rental properties
Copy of Form S1 (for pensioners seeking exemption from CSG/CRDS social charges)
Invoices for tax-deductible energy renovations or home-help services (crédit d'impôt)
Taxe foncière assessment notices

Finding English-Speaking Tax Accountants in Southwest France

Navigating cross-border declarations, French tax treaties, and gîte depreciation requires professional expertise:

VeriLocal is a verified discovery directory. Tax regulations and treaty interpretations are subject to change. Always consult a certified expert-comptable or qualified tax avocat for personalized fiscal advice.