Ceasing your tax residency in France can be a complex process, but with the right information and steps, you can navigate it smoothly. This guide will walk you through the necessary steps to ensure you properly cease your tax residency in France.
Determine Your Residency Status
First, confirm whether you are considered a tax resident of France. According to French law, you are a tax resident if you have your main home (foyer) in France, you spend more than 183 days in France during the calendar year, or your principal place of business is in France.
Notify the French Tax Authorities
Inform the French tax authorities of your intent to cease residency. This involves writing a letter to your local tax office (Service des Impôts des Particuliers) detailing your departure date, new address abroad, and the reason for leaving France.
File Your Final Tax Return
You must file a final tax return (déclaration de revenus) with the French tax authorities. This return should include all income earned up to the date of your departure. Indicate on the form that it is your final return due to cessation of residency.
Settle Outstanding Taxes and Debts
Ensure all your taxes and any outstanding debts to the French government are paid. This may involve settling income tax, property taxes, and social contributions. Clear all your dues to avoid any legal complications in the future.
Close or Update French Bank Accounts
Close any bank accounts you no longer need or update your address with your French bank for any accounts you wish to keep. This will ensure you receive any tax refunds or communications from French authorities.
Update Social Security and Healthcare
Inform the French social security and healthcare systems of your change in residency. This includes notifying CPAM (Caisse Primaire d'Assurance Maladie) and any other relevant social security bodies.
Deregister from Local Services
Deregister from local services such as utility companies, local electoral rolls, and any other municipal services. This ensures there are no complications or misunderstandings about your residency status.
Legal References
- Article 4 B of the French General Tax Code (Code Général des Impôts)
- Article 167 bis of the French General Tax Code (Code Général des Impôts)
- French Tax Instruction BOI-IR-DOMIC-10-20
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