Partner Article
French social charges: who pays, how much, what’s new?
One charge increased for certain types of income in 2026
Prélèvements sociaux are so-called because the money is used to finance the French social security system
RVillalon/Shutterstock
Newcomers soon learn that income is subject to two forms of tax in France – income tax and social charges. Non-residents may also be liable, for example if they rent out French property or make capital gains on the sale of local real estate.
Like other French taxes, the rules and rates often change over the years. While there were no major reforms for 2026, one of the social charges did increase for certain types of income.
What are social charges?
Social charges (prélèvements sociaux) are so-called because the money is used to finance the French social security system. They do not, however, provide health benefits and should not be confused with the social security contributions payable on employment income.
Social charges are made up of four elements, with rates varying according to the type of income:
- CSG (Contribution sociale généralisée): 9.2%–10.6%;
- CRDS (Contribution au remboursement de la dette sociale): 0.5%;
- PdS (Prélèvement de solidarité): 7.5% where applicable;
- CASA (Contribution additionnelle de solidarité pour l'autonomie): 0.3% on pensions.
The total combined rates for 2026 are:
- Salaries: 9.7%;
- Pensions: 9.1% (reduced to 7.4% for low pension income);
- Rental income, real estate capital gains, assurance vie and certain tax wrappers: 17.2%;
- Interest, dividends and capital gains on shares: 18.6%.
The CSG rate applied on capital income increased from 9.2% to 10.6% from January 1, 2026, taking the total social charges rate to 18.6% from the previous 17.2%.
However, this increase does not apply to rental income, capital gains on real estate, assurance vie income and gains as well as income from French tax-advantaged savings such as a Plan d’Epargne Logement (PEL), Plan d’Epargne Populaire (PEP) and Compte d’Epargne Logement (CEL).
Are UK pensions liable to social charges?
Social charges on pension income are only payable if you receive French healthcare cover via French contributions.
If you have a Form S1, you escape social charges on pension income on the basis that the UK pays for your healthcare in France.
This exemption also applies to pension lump sums, which can be particularly useful for some Britons wishing to cash in their pensions, for example to protect the funds from UK inheritance tax.
Under certain circumstances (so it may not apply to you), France offers a beneficial 7.5% flat rate when you cash in an entire pension fund. Without an S1 you would also pay 9.1% social charges, but with an S1 total tax is limited to just 7.5%.
Take professional advice to establish if your pension would be eligible and, importantly, if this course of action would be suitable for you.
Contact Blevins Franks to find out more about making your money work for you in France.
What is the reduced social charges rate for property and investment income?
Individuals covered under the healthcare system of another EU or EEA country are not subject to the CSG or CRDS charges on their investment income or capital gains. This means they just pay the prélèvement de solidarité at 7.5% – a tax saving of 9.7%.
Although the UK is no longer an EU member, in 2022 the French authorities officially confirmed that UK nationals with an S1 continue to be exempt from CSG and CRDS social charges on investment income.
You can benefit from this 7.5% social charges rate on investment income if you meet either of these conditions:
You live in France and hold Form S1 and/or are covered by the health system of another EU or EEA country or affiliated to the UK social security system; or
You are a UK resident (or reside in an EU/EEA country outside France) and earn French source income or gains (for example, from a French property).
If you are eligible, this 7.5% social charges rate applies to:
Capital gains made on the sale of property;
Rental income;
Investment income – interest, dividends, capital gains made on the disposal of securities such as shares, withdrawals from assurance vie etc.
France’s ‘flat tax’ on investment income
The 30% prélèvement forfaitaire unique (PFU) was introduced in 2018. It applies to investment income and covers both income tax and social charges.
Essentially it comprises the regular 17.2% social charges plus a 12.8% rate of income tax. While often referred to as a ‘flat tax’, the rate does vary:
30% is the standard rate applied to interest, dividends, assurance vie income and gains, and capital gains on shares;
31.4% is now applied on bank interest, dividends and gains made on the disposal of shares;
20.3% applies to anyone with a Form S1, on all types of investment income.
Paying social charges
Social charges are paid in arrears and usually calculated on the income declared in your May income tax return. Each autumn, you receive a notification of the amount you owe for the previous year’s income.
For certain types of income/gain (assurance vie under special rates, real estate capital gains, dividend/interest advance payment etc.), the charges are paid by the 15th of the following month.
Tax planning
When you add social charges to income tax, French taxation can seem rather daunting. However, France does offer effective tax-planning opportunities, particularly on investment income and gains.
It is prudent to take personalised advice to ensure you are following the rules correctly and guide you through compliant tax-planning opportunities available in France, particularly for your investment capital and pensions.
Rob Kay is a financial adviser and regional director of Blevins Franks
