1. The Impatriate Regime (The "Welcome" Bonus)
Recruited from abroad? You might be eligible for France's most generous tax break, valid for up to 8 years.
Benefit 1: Salary Exemption
The "Impatriation Bonus" (usually ~30% of gross salary) is Tax Free.
Benefit 2: Passive Income (50%)
50% exemption on foreign passive income (NRE Interest, Dividends, Capital Gains) received from outside France.
Taxable Income Comparison
Scenario: €100k Salary + €10k Foreign Interest
2. The Flat Tax (PFU)
Prélèvement Forfaitaire Unique (30%)
Investment income (Interest, Dividends, Capital Gains) is taxed at a flat rate of 30%. This applies to your NRE Interest (which is NOT tax-free in France).
*Option: You can choose the progressive scale if your marginal tax rate is low (<11%), but Social Charges (17.2%) always apply.
3. Real Estate Wealth Tax (IFI)
Impôt sur la Fortune Immobilière. Unlike Norway (all wealth), France only taxes Real Estate worldwide.
Safe Zone
Your real estate wealth is below €1.3 Million. No IFI declaration required.
4. Income Matrix (DTAA)
French Salary
💶France: Taxed at source (PAS). Progressive rates (0%, 11%, 30%, 41%, 45%).
India: Exempt.
NRE Interest
🏦France: Fully Taxable (30% PFU).
India: Exempt.
Indian Rent
🏠India: Taxable.
France: Reportable to determine "Effective Rate" (Taux Effectif).
5. The €1,500 Mistake (Form 3916)
You must declare ALL foreign bank accounts (opened, closed, or used) annually. This includes NRE, NRO, and Indian savings accounts.
- ! Form: Cerfa 3916 (Déclaration par un résident d'un compte ouvert hors de France).
- ! Penalty: €1,500 per account per year (€10,000 if from a non-cooperative state).
- ! Life Insurance: Cerfa 3916-bis for Indian LIC policies.