Income to be declared

Income tax returns need to be submitted – or tacitly accepted for those with very simple tax affairs – by all French tax residents. All worldwide income must be declared with only a small number of exceptions. 

Declarations are completed per household and not individually unless you live with someone who is not part of your tax household, such as one of your adult children or a long-term unofficial partner (see chapter 3 for more about the foyer fiscal).

Non-residents who have French-taxable (or declarable) income sources in France (income from property being the most common) must also declare (see chapter 3, 'Taxation rules for non-residents'). 

Among income to be declared by residents is that contained in such UK-tax-free ‘wrappers’ as PEPs and ISAs, whose tax-free status is not recognised by France. Income (eg. dividends) and gains (eg. from selling shares and making a capital gain) which have accrued in one but which have not been taken out needs to be declared.

France only recognises its own tax-free accounts, such as an LDDS, LEP or Livret A, and income from these does not have to be declared. Also exempt are APA autonomy benefit, Aspa pension top-up benefit and the ASI disability benefit.

Some people do not declare income that has been taxed in another country, however this is incorrect. 

When your fiscal residency transfer has been carried out correctly, most foreign income will be paid gross, ie. without deduction of foreign income tax. This is the case for UK state pensions, pension annuities and private and company pensions but not for ‘government’ pensions (eg. those paid to former civil servants, diplomats, teachers etc). It is also not the case for US pensions as the US has the right to tax these.

Investment income, such as dividends and bank interest, should not have tax deducted at source in the UK. This income is taxed in France for French residents.

However, where a UK resident has other UK-sourced income such as private pensions which are subject to and thus taxed by HMRC this could continue if you move to France and HMRC is not informed. For this reason it is important to ensure the correct form is completed to notify your residency in France (see tinyurl.com/france-indiv).

For more on UK taxation see: gov.uk/browse/tax/income-tax (see Tax on savings interest, Tax on dividends and Tax on UK income if you live abroad). If in doubt seek advice from a financial professional used to working with British clients or contact HMRC directly.

UK rental income is the most common reason for French fiscal residents having to complete a UK tax return. In the case of a UK government pension, tax is taken at source and a UK tax return form is generally not needed.

As a French fiscal resident, you should declare income received worldwide to France even where it is a kind of income that, due to double tax treaties, attracts a tax credit equal to the French tax that would otherwise have been due, or a credit equal to foreign tax paid, or is considered simply French-tax-exempt but to be taken account of to assess what tax bands apply to your other incomes.

If any tax is being deducted at source on foreign income, then, subject to the exceptions stated above, it is probably due to the fact that your residency change to France has not been correctly dealt with and noted by the tax authorities of the other country (eg. the UK for Britons in France). It is your responsibility to resolve this.

Note: People living in France but working in a neighbouring state are called transfrontaliers. If they work in Germany, Belgium, Spain, Italy and some Swiss cantons, they have a specific statut frontalier status due to agreements between France and the other country (notably, they are taxed by France on their work income, not by the country where they work). See: tinyurl.com/front-info.