Determining tax residence

Tax residence is not an individual choice : it is calculated according to legal criteriadefined by the French tax authorities and by the rules set out in in international tax treaties.

Under French law, a person is considered a French resident for tax purposes when they meet at least one of the following criteria:

• Their place of residence or primary residence is in France.
• They carry out their professional activity in France, as an employed or self-employed person, unless it can be proven that this activity is carried out on an ancillary basis.
• Their center of economic interests is in France (e.g. the place where they receive their income and where their investments and assets are managed).

Sometimes, a person may be considered a tax resident in several countries. In this case, international tax treaties concluded by France provide specific rules to avoid double taxation of the same income. When a tax treaty applies, tax residence is determined according to the following successive criteria:

1. The permanent place of residence (usual or family residence).
2. In the case of dual permanent residence, the center of economic and personal interests, when it can be identified.
3. When this center cannot be determined, the main place of residence (if they spend more than 183 days in France in a single year).
4. The individual’s nationality, when the previous criteria do not allow for the determination of tax residence.
5. Failing that, the tax authorities of both countries may be consulted to resolve the matter.