Should I declare interest on French bank account as an American?
Tax treaties can affect what authorities must be notified of
Double tax treaties provide rules around which country you should pay tax in, including on bank accounts
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Reader Question: I am an American and bought a vacation flat in Besançon last year. I keep a bank account at CCF so my electric, internet, and mobile phone bills can be paid every month. I am only in France about two months a year until I retire. All my income is in the US except the interest on this French bank account, which is nominal, just a few dollars. Do I need to file a French tax return?
The fact of merely having a French bank account does not mean that you are required to submit a French tax return, even if it pays you interest.
The amount of the interest is not the relevant factor.
In fact, under the US-France double tax treaty, you are not required to declare French or other bank interest to France if you are not a French tax resident.
As the flat is a holiday home and you are only in France for two months a year, you will have remained a US tax resident and are likely to remain so until such a time as you move permanently (eg. after retirement).
In terms of investment income, the main kinds that need to be declared to France for residents of the US are income (including rents and capital gains) from land and buildings in France, capital gains on sale of shares in companies whose assets are more than 50% land and buildings in France, or dividends paid by French companies.
