Regimes: 5
Régime des impatriés
OpenFor people relocating
No income tax on the impatriation bonus (actual or 30% of net pay) and on 50% of certain foreign investment income; IFI only on French real estate
Details
- Who
- Employees and executives not tax-domiciled in France in the 5 calendar years before taking up the position who move their tax domicile to France when they start (direct hire from abroad or intra-group transfer).
- How it works
- Income-tax exemption of the impatriation bonus (actual or, by option, 30% of net taxable pay) and of pay for work abroad (combined cap 50% of pay, or 20% for the foreign part), plus 50% of certain foreign passive income; until 31 December of the eighth year after starting; taxable pay must not be below the market level for similar roles. Social contributions apply as normal.
- Duration
- Until 31 December of the 8th year after starting work (IFI relief until 31 December of the 5th year after moving)
- How to opt in
- No separate application: the choices (e.g. the 30% flat bonus) are stated in the annual return 2042/2042-C the following spring and exempt amounts go in boxes 1DY/1EY; an advance ruling (rescrit) can be requested.
- Limits and risks
- Taxable pay may not be below the market level for a similar post; the regime ends if you leave the host company; social contributions are due (an exemption can be requested only from basic and supplementary pension contributions).
- Legal basis
- Code général des impôts, art. 155 B
- Checked
- November 4, 2026
Régime micro-fiscal (micro-BIC, micro-BNC)
OpenFor the self-employed
Flat expense allowance: 71% / 50% / 34% of turnover (at least EUR 305)
Details
- Who
- Sole traders (including micro-entrepreneurs) with turnover excluding VAT in 2024 or 2025 not above EUR 203,100 (sales, accommodation) or EUR 83,600 (services, BIC/BNC) — for 2026 income.
- How it works
- Instead of actual expenses — a flat allowance on turnover: 71% (sales), 50% (BIC services), 34% (BNC), at least EUR 305; the rest is taxed at the progressive income-tax scale together with other income.
- How to opt in
- Applies automatically if turnover excluding VAT in 2024 or 2025 did not exceed EUR 203,100 (sales, accommodation) or EUR 83,600 (services); turnover is reported in the annual return.
- Limits and risks
- Actual expenses are not deducted even if higher; social contributions to URSSAF are paid separately.
- Legal basis
- Code général des impôts, art. 50-0, 102 ter; Service-Public: Micro-entreprise — régime fiscal
- Checked
- November 4, 2026
Versement forfaitaire libératoire de l'impôt sur le revenu
OpenFor the self-employed
Tax of 1% / 1.7% / 2.2% of turnover instead of the income-tax scale
Details
- Who
- Micro-entrepreneurs under the micro-fiscal regime whose household reference income (RFR) for year N−2 does not exceed the per-share limit; the option must be filed by 30 September of the preceding year.
- How it works
- Income tax is paid monthly or quarterly together with social contributions as a percentage of turnover: 1% (sales, accommodation), 1.7% (other BIC), 2.2% (BNC); it discharges income tax at the scale on that income.
- How to opt in
- Opt in with URSSAF by 30 September of the year before (for a new business, by the end of the 3rd month after creation). Household reference income (RFR) for year N−2 must not exceed EUR 29,579 for a single person or EUR 59,158 for a couple.
- Limits and risks
- Only within the micro regime; the tax is due on turnover even without profit; the income must still be reported in the annual return too.
- Legal basis
- Code général des impôts, art. 151-0; Service-Public: Micro-entreprise — régime fiscal
- Checked
- November 4, 2026
Plan d'épargne en actions (PEA)
OpenFor investors
Gain on withdrawals after 5 years exempt from income tax
Details
- Who
- Adults with their tax domicile in France; one PEA per person; contributions up to EUR 150,000 (bank PEA).
- How it works
- Dividends and gains on European shares inside the plan are not taxed while the money stays in the plan. After 5 years withdrawals are free of income tax, but social levies are due on the gain. A withdrawal within 5 years usually closes the plan.
- How to opt in
- Open a PEA with a bank or insurer; a French tax domicile is required.
- Limits and risks
- Social levies on the gain are always due; a withdrawal within 5 years closes the plan and triggers tax; special rules apply to people who leave France.
- Legal basis
- Code monétaire et financier, art. L221-30 et s.; Code général des impôts, art. 157, 5° bis; Service-Public : Plan d'épargne en actions (PEA)
- Checked
- November 4, 2026
Assurance-vie (contrat de 8 ans ou plus)
OpenFor investors
Allowance of EUR 4,600 / 9,200 a year and a 7.5% rate
Details
- Who
- Holders of life insurance contracts that are 8 or more years old who make a partial or full surrender.
- How it works
- Each year EUR 4,600 (EUR 9,200 for a couple) of the surrender gain is tax-free. The rest is taxed at 7.5% (the part linked to premiums above EUR 150,000 at 12.8%) or, by option, at the progressive scale.
- How to opt in
- No separate application: the insurer withholds a 7.5% advance on surrender, and the allowance and final rate are applied in the annual return.
- Limits and risks
- Social levies (CSG, CRDS) on the gain are always due; non-residents are subject to a separate withholding regime.
- Legal basis
- Code général des impôts, art. 125-0 A; Service-Public : imposition des revenus d'un contrat d'assurance-vie
- Checked
- November 4, 2026
DoubleTaxation