The determination of tax residency is a central question for anyone living, working, or investing across multiple countries.
It determines the place of income taxation, the application of international tax treaties, the classification of certain asset-related transactions, and, in some cases, the initiation of audits or disputes with the tax authorities.
Contrary to a widespread belief, tax residency depends neither on a personal choice nor on a simple declaration. Under French law, it results from a legal assessment based on precise criteria, defined by law and interpreted by the tax authorities. En effet, le critère des 183 jours brandi par certains est un mythe : contrairement à ce que beaucoup pensent, pour échapper à la domiciliation fiscale française il ne suffit pas de démontrer que le contribuable a passé en France moins de 183 jours.
Cette question se pose très fréquemment pour les personnes expatriées, les non-résidents fiscaux ou celles partageant leur vie entre la France et l’étranger. Le cabinet VV Avocat reçoit de nombreux dossiers concernent des contribuables internationaux, cadres, dirigeants ou investisseurs, confrontés à des situations de double résidence fiscale ou à des échanges complexes avec l’administration française dans un contexte transfrontalier.
Under French tax law, the determining concept is that of tax domicile, as defined in Article 4 B of the General Tax Code.
A person is considered tax domiciled in France as soon as they meet at least one of the following criteria:
have their home or primary place of abode in France;
carry out their main professional activity in France;
have the center of their economic interests in France;
or fall under certain specific situations provided for by law.
These criteria are alternative: the fulfillment of just one of them is sufficient to characterize French tax residency. The tax authorities specify their interpretation in their official doctrine (BOFiP), which constitutes an essential reference in practice.
The home corresponds to the place where the taxpayer has the center of their family life. This generally refers to the place where the spouse, partner, or children reside, and where daily life is organized.
In expatriation situations, this criterion is decisive when:
the spouse and children remain in France;
the family residence is maintained on French territory;
returns to France are frequent and structuring.
Even if the professional activity is carried out abroad, maintaining a home in France may be sufficient to establish French tax residency.
When the home cannot be clearly identified, the administration examines the primary place of abode, assessed based on the actual time spent in France during the year.
This criterion is based on a factual analysis: number of days spent in France, regularity of stays, concrete organization of personal life.
Tax residency may also be established in France when the person carries out their main professional activity there.
This concept is assessed concretely:
time devoted to the activity;
nature of duties performed;
place of effective management for executives;
relative importance of professional income.
This criterion applies to employees in international mobility as well as self-employed individuals or directors of French or foreign companies.
In cross-border situations, the activity may appear distributed among several states, which requires a detailed analysis of the economic reality.
The center of economic interests is one of the most sensitive criteria and the most frequently invoked by the tax authorities.
It corresponds to the place where the taxpayer has concentrated the majority of their economic interests, including:
their main investments;
the management of their assets;
their most significant sources of income;
the direction or control of their business affairs.
Thus, a person may physically reside abroad while maintaining a sufficient center of economic interests in France to justify French tax residency.
This criterion is particularly common in situations involving:
the ownership of real estate in France;
the management of French companies;
income primarily from French sources.
Certain specific situations are also covered by the General Tax Code, particularly for state agents performing their duties outside France, when they are not subject to an equivalent personal tax in the state where they operate.
When a person is not tax domiciled in France, they are classified as a tax non-resident.
This does not mean a total absence of taxation in France.
Non-residents remain taxable on their French-source income, according to specific rules that may concern:
real estate income;
certain capital gains;
certain remunerations or pensions;
the application of specific withholding taxes.
The exact taxation methods depend on the nature of the income concerned and the potential existence of an international tax treaty.
It sometimes happens that a person is considered a tax resident by two different states. This situation of dual tax residency is addressed by the bilateral tax treaties concluded by France.
These treaties generally provide for successive tie-breaker rules, including:
the permanent home;
the center of vital interests;
the habitual abode;
nationality;
agreement between the tax administrations concerned.
These analyses are complex and rely on a precise assessment of the facts. They often lead to tax audits or disputes, particularly in situations of expatriation or return to France.
Certain errors regularly recur in practice:
assuming that tax residency can be freely chosen;
maintaining a family home in France without assessing the tax consequences;
underestimating the importance of the center of economic interests;
failing to anticipate the effects of a gradual return to France.
These situations can lead to significant tax reassessments, sometimes several years after the events.
It applies the criteria of Article 4 B of the General Tax Code. A single criterion is sufficient to establish French tax residency.
Yes. In this case, the applicable tax treaty allows for the tie-breaking of residency between the states concerned.
No. Non-residents remain taxable in France on their French-source income.
Not automatically, but it can contribute to establishing a permanent home in France.
Because cross-border situations require precise legal analysis, particularly concerning tax residency, international conventions, and audit risks.
Yes. A tax lawyer can analyze the situation, anticipate risks, and structure communications with the tax authorities.
It applies the criteria of Article 4 B of the General Tax Code. A single criterion is sufficient to establish French tax residency.
Yes. In this case, the applicable tax treaty allows for the tie-breaking of residency between the states concerned.
No. Non-residents remain taxable in France on their French-source income.
Not automatically, but it can contribute to establishing a center of economic interests located in France.
Because cross-border situations involve a precise legal analysis, particularly regarding tax residency, international treaties, and audit risks.
Yes. A tax lawyer can analyze the situation, anticipate risks, and structure interactions with the tax administration.
VV Avocat Law Firm assists you with all your tax procedures, in both French and English.
For personalized support, please see our Fees page.
Situations of expatriation, tax non-residency, or dual residency often require the intervention of a tax lawyer.
A tax lawyer in Toulouse, accustomed to the issues faced by expatriates, tax non-residents, and international taxpayers, is able to:
analyze tax residency in light of legal criteria;
ensure the correct application of international tax treaties;
anticipate the risks of reclassification by the administration;
assist the taxpayer in case of audit or dispute.
This expertise is particularly sought after in international cases, involving multiple states or foreign clients.