A French tax resident is in principle taxable in France on all their income, including foreign-source income, subject to tax treaties. Salaries, pensions, dividends, interest, rents, capital gains, bank accounts: depending on the nature of the income and assets held abroad, several forms may be involved.
This article sets out, in a table, the form that corresponds to each situation, with an example. It supplements the page on tax returns for foreign income. As each situation depends on the applicable tax treaty, an analysis with a lawyer is necessary.
In brief
- A French tax resident in principle declares all their income every year, including foreign-source income, even when it has already been taxed abroad or is exempt in France.
- Form no. 2047 in principle summarises foreign-source income (salaries, pensions, dividends, interest, rents, gains on securities, etc.) before it is carried over to return no. 2042 or no. 2042 C.
- The gain realised on the sale of a property located abroad in principle falls under form no. 2048-IMM, filed with payment within one month of the sale.
- Bank accounts, life insurance contracts and digital asset accounts held abroad are in principle declared on form no. 3916-3916-bis.
- Depending on the treaty, France may, in some cases, avoid double taxation through a tax credit or an exemption with the effective rate rule, which only an analysis of the situation by a lawyer can confirm or rule out; using the wrong box may lead to double taxation or a tax reassessment.
Contents
The principle: declare, even what is not taxed in France
Foreign-source income is in principle declared in France even where it has already borne tax abroad, and even where the treaty exempts it in France. In the latter case, it is in principle used to calculate the rate applicable to other income (effective rate) and the reference tax income. Amounts in foreign currency are in principle converted into euros at the euro exchange rate on the date of receipt.
Which form for which income or asset?
The table below sets out the main situations; the boxes indicated are examples and depend on the applicable treaty:
| Income or asset abroad | Form | Carry-over and remarks |
|---|---|---|
| Foreign-source salaries and pensions | No. 2047, except exempt salaries and pensions taken into account for the effective rate, declared directly on no. 2042 C | Boxes provided according to the treaty method (for example 1AF, 1AG or 1AC for salaries) |
| Foreign dividends and interest | No. 2047; during the year, no. 2778-DIV (dividends) or no. 2778 (interest) | Carried over to box 2DC (dividends) or 2TR (interest); any tax credit in box 8VL; the 12.8% instalment is in principle declared and paid within fifteen days of the month following payment, unless exempted subject to income conditions |
| Rent from property located abroad | No. 2047 (and no. 2044 under the actual-expenses regime) | Rental income boxes and box 8TK, or boxes specific to exempt rents taken into account for the effective rate (for example 4EA or 4EB), depending on the treaty |
| Gains on disposals of foreign-source securities | No. 2047 and, depending on the case, no. 2074 | Carried over to section 3 of no. 2042 C (for example box 3VG) |
| Gain on a property located abroad | No. 2048-IMM, in principle within one month of the sale, with payment | Carried over to box 3VZ of no. 2042 C the following year; if the treaty exempts the gain in France, mention on no. 2047 |
| Bank accounts, digital asset accounts, life insurance contracts abroad | No. 3916-3916-bis | Box 8UU (accounts) or 8TT (life insurance) of no. 2042, in principle every year, including for an inactive account or one closed during the year |
| Real estate located abroad (wealth) | No. 2042-IFI, if net taxable real estate wealth exceeds €1.3 million | For a French resident, property located abroad is in principle included, subject to treaties |
How double taxation may be avoided
Depending on the treaty and the nature of the income, France may grant a tax credit equal to the French tax (box 8TK), a tax credit equal to the foreign tax within the limit provided (for example box 8VL for dividends and interest), or an exemption with the effective rate rule; only an analysis of the situation by a lawyer can determine whether and how the treaty applies. These mechanisms are explained step by step, with worked examples, in the guide on boxes 8TK and 8VL.
An example
Paul, a French tax resident, receives in 2025 dividends from an American company (€800,000 gross, of which €120,000 withheld in the United States), as well as rent from a flat located in a country whose treaty provides for a tax credit equal to the French tax; he also holds a bank account in that country. Assuming that a lawyer’s analysis of his situation confirms that the treaties concerned apply, in principle:
- on each dividend payment, he declares and pays the 12.8% instalment using form no. 2778-DIV, unless exempted;
- in spring 2026, he completes form no. 2047 for the dividends and the rent;
- on return no. 2042, he enters the gross dividends in box 2DC and a tax credit of €120,000 in box 8VL, equal to the tax withheld in the United States within the limit of 15%;
- he declares the rent in the rental income boxes and also enters its amount in box 8TK;
- he declares his account on form no. 3916-3916-bis and ticks box 8UU (see the guide on form 3916).
In the event of an omission
An omission may lead to a tax reassessment with late-payment interest and, depending on the case, surcharges. For an undeclared foreign account, a fixed fine per account is in principle added (see the fines for failing to declare a foreign account), and the period during which the tax authorities may claim the tax may be extended to ten years. Depending on the case, regularisation may be considered (see the article on forgetting to declare a foreign account); its terms deserve to be examined with a lawyer.
The choice of forms and boxes depends on the nature of each item of income and on the applicable treaty. An analysis with a lawyer, before the return is filed, may, depending on the case, make it possible to avoid double taxation or a tax reassessment.
What I see in my cases
Foreign funds, dividends, interest, salaries not taxable in France, rents: the foreign income returns I prepare often involve high stakes. As France has signed many tax treaties, significant optimisations are sometimes possible: only an analysis of the case by a lawyer can determine whether or not a treaty may reduce the French tax. The return still has to be well constructed: the tax authorities know these rules poorly and tend to refuse anything poorly presented. Being solid from the outset makes it possible to answer any questions simply.
Among these types of income, the ones I see most often are rents, dividends, interest and capital gains; foreign pensions and retirement benefits also come up often, and it is in principle the treaty that determines whether they are taxable in France. The most frequent error is confusing the tax credit and the exemption with the effective rate rule, or applying one instead of the other. Teleworking from France for a foreign employer also often causes difficulties, particularly with payroll, whose consequences then have to be untangled for the employee.
FAQ
Is foreign income already taxed abroad declared in France?
In principle yes. The tax treaty may, depending on the case, prevent it from being taxed twice, through a tax credit or an exemption with the effective rate rule; only an analysis of the situation by a lawyer can determine whether this is the case. Declaring it in France nevertheless in principle remains necessary.
Does form 2047 exist in the online return?
Yes: in the online return, it is in principle completed as part of the return, by selecting the corresponding annex; the amounts are then carried over to return no. 2042 or no. 2042 C.
Where is a foreign salary exempt in France declared?
Where the treaty exempts the salary with the effective rate rule, it is in principle declared directly in boxes 1AC et seq. of return no. 2042 C, without form no. 2047.
Is an inactive foreign account declared?
In principle yes: the obligation covers accounts opened, held, used or closed abroad, whether active or not, every year.
What can happen in the event of an omission?
A tax reassessment with late-payment interest and, depending on the case, surcharges; for an undeclared account, a fixed fine per account and an extended reassessment period. Depending on the case, regularisation may be considered; its terms deserve to be examined with a lawyer.
