Each year, a French tax resident in principle declares all of their income, including foreign-source income, as well as their accounts opened abroad. Here, situation by situation, are the main forms and boxes involved. Line and box numbers may change from one year to the next: the instructions for the current year prevail.
In brief
- A French tax resident in principle declares every year all of their foreign-source income, as well as their accounts and life insurance contracts held abroad.
- Foreign-source rents, dividends, interest and gains on securities in principle go through form no. 2047, then are carried over to return no. 2042 or no. 2042 C.
- The boxes depend on the tax treaty, which may, depending on the case, provide for a tax credit equal to the French tax (box 8TK), a tax credit equal to the foreign tax (box 8VL) or an exemption with the effective rate rule (for example boxes 4EA or 4EB for rents): only an analysis of the situation by a lawyer can determine whether one of these mechanisms applies, and which one.
- The sale of a property located abroad in principle falls under form no. 2048-IMM, within one month of the sale.
- Accounts opened abroad are in principle declared on form no. 3916-3916-bis, with box 8UU ticked.
Contents
| Situation | Form | Carried over to (in principle) |
|---|---|---|
| Rent from a property located abroad | 2047 (section 4), or directly the 2042 C | Boxes 4BK or 4BL and 8TK (tax credit equal to French tax), or 4EA or 4EB (exemption with the effective rate rule), depending on the treaty |
| Sale of real estate located abroad | 2048 IMM, in principle within one month of the sale | Box 3VZ of the 2042 C; 2047 only if the gain is exempt in France |
| Foreign dividends | 2047, lines 200 onwards | Section 2 of the 2042 or 2042 C; any tax credit in box 8VL |
| Foreign interest | 2047, lines 230 onwards | Section 2 of the 2042 or 2042 C; any tax credit in box 8VL |
| Capital gains on the sale of shares abroad | 2047, section 3 | 2042 C (in particular box 3VG) |
| Accounts opened abroad | 3916-3916-bis | Box 8UU of the 2042 |
I Have Rental Properties Abroad
Foreign rental income received by a French tax resident is in principle declared on form 2047, which is used to report rental income from property located outside France. For each country, it in principle shows the amount of rent and, where applicable, deductible expenses; it is attached to the annual income tax return (form 2042), or completed as part of the online return.
Depending on the applicable tax treaty, this income may, in some cases, not actually be taxed in France, while being taken into account to calculate the tax rate on other income, which only an analysis of the situation by a lawyer can confirm or rule out.
Where it goes in the return then in principle depends on the treaty: if the treaty grants a tax credit equal to French tax, it appears in section 4 of the 2047, carried over to box 4BK or 4BL and to box 8TK of the income tax return; if the treaty exempts it with the effective rate rule, it is declared directly in box 4EA or 4EB of the 2042 C, without going through the 2047. Where the treaty allows it, which needs to be checked by a lawyer, declaring it in the right place may avoid this income being taxed in France. For an overview, see which returns to file in France for foreign income.
I Sold a Property Abroad: How Is the Capital Gain Reported?
Where a French tax resident realises a gain on real estate located abroad, the gain is in principle taxable in France, unless the applicable tax treaty provides otherwise; only a case-by-case analysis by a lawyer can determine whether this is the case. The form used to report these gains is in principle form 2048 IMM, which covers a sale as well as any other disposal for consideration (exchange, contribution…).
It shows in particular information about the property sold (address, acquisition date and price, sale price, expenditure on works) and is in principle filed, together with payment of the tax, with the competent registration office. The deadline is short: in principle, one month from the sale. Where the gain is exempt in France under a treaty, it is in principle only reported on form 2047.
I Have Foreign Dividends and Interest, or Capital Gains on the Sale of Shares Abroad
Foreign investment income received by individuals who are tax resident in France must in principle also be declared, on form 2047: interest, dividends or capital gains on the sale of securities realised abroad. On form 2047, they in principle appear:
- for dividends, on lines 200 onwards;
- for interest, on lines 230 onwards;
- for capital gains on the sale of shares, in section 3.
Depending on the country concerned, the tax treaty may provide that the income is not taxable in France, or that it is taxable in France with a tax credit; only an analysis of the situation by a lawyer can determine which rule applies. In the latter case, the tax credit is in principle calculated on the 2047 and carried over to box 8VL of the 2042 C.
Reporting Foreign Accounts: Form 3916
In principle, this covers in particular bank accounts abroad, trading accounts and securities portfolios held abroad.
In principle, individuals who are tax resident in France must declare the accounts opened, held, used or closed abroad, including life insurance contracts and securities accounts held abroad. This obligation in principle also covers dormant accounts.
Form 3916-3916-bis is used to declare these accounts; it shows in particular the name and address of the institution, as well as the number and characteristics of the account, but not its balance. It is in principle filed with the income tax return, on which box 8UU is ticked.
Foreign Income and Tax Treaties
Income received abroad by a French tax resident is in principle taxable in France.
Tax treaties may, however, provide mechanisms to avoid double taxation: depending on the case, a tax credit in France or an exemption with the effective rate rule, which may reduce, or even eliminate, French tax on this income; only an analysis of the situation by a lawyer can determine whether or not the applicable treaty allows this. To find out more, see the page on tax returns for foreign income.
Each situation deserves to be analysed with a lawyer, in order to identify the returns to be filed and the mechanisms provided for by the applicable treaty.
FAQ
Do the box numbers change every year?
They may change from one year to the next. The notes for the current year are authoritative; the boxes indicated in this article are examples.
Do rents exempt with the effective rate rule go through form 2047?
In principle no: where the treaty exempts them with the effective rate rule, they are declared directly in boxes 4EA or 4EB of return no. 2042 C.
Where is the tax credit on foreign dividends carried over?
In principle to box 8VL of return no. 2042 C, after calculation on form no. 2047. Where the treaty provides for this credit, it is in principle limited to the rate the treaty sets: for example, a credit equal to the tax withheld in the United States, within the limit of 15%. Only an analysis of the situation by a lawyer can determine whether and to what extent this credit applies.
Is an instalment due on foreign dividends?
In principle yes where the paying institution is established outside France: the 12.8% instalment is declared and paid using form no. 2778-DIV within fifteen days of the month following payment, unless exempted subject to income conditions. It is then, as a general rule, set against the tax due.
Is the balance of foreign accounts declared?
In principle no: form no. 3916-3916-bis mentions the institution, the account number and its characteristics, but not its balance.
Read more
- I Have Foreign Income: Which Returns Must I File in France?
- Foreign Income Tax Returns
- Foreign income and double taxation: boxes 8TK and 8VL explained simply
- Selling Property Abroad: French Tax and Form 2048-IMM
- Foreign Rental Income: Must It Also Be Declared in France?
- Form 3916: how to declare a foreign account, step by step
