top cx logo
cx logo
Explorearrow down
search icon

Converting foreign income for French tax forms

Converting amounts of UK or other non-euro zone incomes for French tax declaration purposes inevitably raises the issue of what rate to use – a common query received at the Connexion offices.

Occasionally a reader tells us their tax office has suggested using a slightly different rate compared to the one we have suggested in our annual tax guide, and there are various reasons why this could be:

  • Firstly, according to the letter of the law, you should use the actual rate on the date the income was received – this could be practical if you only receive foreign income a few times a year, but may not be otherwise
  • By convention however tax offices allow use of an average rate for the year. Connexion has previously been told by the Economy and Finance Ministry there is some leeway as to the method of arriving at this average as long as a ‘reasonable’ one is used.
  • In our tax guide we explain the method we use, which the ministry recommended to us, which was based on a ministerial response to an MP’s question a few years ago. It involves taking the Banque de France month-end rates for December 31 of the tax year in question and the previous year and averaging them. In the guide we have used this to calculate the rates for a range of currencies, from sterling to Canadian dollars or Danish kroner.

The Connexion’s annual guide to the French Tax Forms, aimed particularly at Britons living in France, is €12.50(+p&p) and is available in selected newsagents and also as printed and download versions at: Helpguides

Stay informed:
Sign up to our free weekly e-newsletter
Subscribe to access all our online articles and receive our printed monthly newspaper The Connexion at your home. News analysis, features and practical help for English-speakers in France

Resident or second-home owner in France?
Benefit from our daily digest of headlines and how-to's to help you make the most of life in France
By joining the newsletter, you agree to our Terms & Conditions and Privacy Policy
See more popular articles
The Connexion Help Guides
featured helpguide
Income Tax in France 2023 (for 2022 income)*
Featured Help Guide
- Primarily aimed at Britons, covers pensions, rent, ISAs, shares, savings and interest - but also contains significant general information pertinent to readers of other nationalities - Overview of online declarations + step-by-step guide to the French printed forms - Includes updates given automatically after this year's site opened
Get news, views and information from France