Tax
Worldwide taxation of residents, 20% VAT and withholding at source
Residents are taxed on worldwide income on a progressive scale, with tax now withheld at source (prélèvement à la source) since 2019. Standard VAT is 20%, and a wealth tax on real estate (IFI) replaced the former ISF in 2018.
Key rules
- Income tax is withheld monthly at source, with an annual reconciliation return.
- The impôt sur la fortune immobilière (IFI) taxes net real-estate wealth above EUR 1.3m.
- Corporate income tax is levied at a standard 25% rate.
Governing law
- Code général des impôts
- Livre des procédures fiscales
Penalties and consequences
- Late-filing surcharges and interest
- Heavier penalties for undeclared foreign accounts
In practice
France taxes households by family quotient, so tax depends on household composition, not just individual income.