The main tax incentives are the following:

Wealth Tax

Although as a general rule, French residents are subject to wealth tax on their worldwide assets, new residents are currently exempt from wealth tax on all their property situated outside France for five years following their taking-up of residency in France.  By way of example, an individual who becomes a resident of France on 12^th April 2017 would be exempt from wealth tax in respect of their non-French assets up until 31^st December 2022.

Income Tax

As a general rule, French residents are subject to income tax on their worldwide income as long as it is available, whether or not it is remitted in France.  The marginal rate which applies on an annual income exceeding €152,000.00 is 45%.

However, under the special “inpatriate tax regime”, individuals who have not been resident during the last five years and who are hired by a French company benefit from the following tax breaks:

-     Their inpatriation bonus is exempt from income tax (in practice 30% of the remuneration can be exempt without justification).This exemption which is currently of 5 yaers may be extended to 8 years.

-     The portion of the remuneration relating to the work carried out outside of France is also fully exempt from income tax.

The above exemptions are capped at 50% of the total compensation and the portion of the remuneration relating to the work carried out abroad should not exceed 20% of the remuneration relating to the work performed in France.

Passive income from foreign sources (e.g. dividends interest) may benefit from a special 50% exemption.

Capital Gains Tax

Capital Gains upon the sale of shares issued by non-French companies also benefit from a 50% exemption.