Taxes in France operate through a comprehensive system of direct and indirect taxation, funding public services and promoting social equality through resource redistribution.

Direct Taxes Overview

Income Tax

• Progressive rates from 0% to 45%
• Withheld at source since 2019
• Applies to annual net global income exceeding €11,497 (2024)
• Annual declaration required for adjustment

Real Estate Wealth Tax (IFI)

• Applies to real estate assets exceeding €1.3 million
• Progressive rates from 0.5% to 1.5%
• Includes property rights and real estate investments
• Some assets may qualify for exemptions

Property Tax

• Paid by property owners only
• Covers built and unbuilt properties
• Rate based on cadastral value
• Includes household waste collection tax

Corporate Taxation

• Standard rate: 25% (2025)
• Reduced rate: 15% for SMEs with turnover under €10 million
• Applies to various business structures (SARL, SA, SAS)
• Optional for certain business types (EIRL, SNC, SCP, EURL)

Indirect Taxes

VAT Rates:

• Standard: 20% (most products and services)
• Intermediate: 10% (restaurants, transport)
• Reduced: 5.5% (essential products, food, renovations)
• Super reduced: 2.1% (press, reimbursed medicines)

Tax Residency Requirements

Residents must meet one of these criteria:

• Main home in France
• Primary professional activity in France
• Center of economic interests in France

Non-residents are taxed only on French-source income, subject to international conventions.

Key Tax Calendar Dates

• Income tax declaration: Mid-April to early June
• Tax notice receipt: Late July/early August
• Property tax: October
• Residence tax (second homes): November
• Corporate tax: Quarterly payments

This system ensures public service funding while maintaining social equity through progressive taxation based on ability to pay.

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