Valley International / moving to france
France's impatriate regime: up to eight years of exemptions
If you are hired into France — or transferred by your group — and were not a French tax resident in the previous five years, France will exempt a substantial part of your income for up to eight years. Very few newcomers claim everything they are entitled to.
France's impatriate regime is a statutory exemption, not a negotiated ruling. Article 155 B of the French tax code removes part of an incoming employee's remuneration from French income tax, together with a share of certain foreign investment income and capital gains. It is open whatever your nationality — a French national returning home qualifies on the same terms as a foreign executive being hired. Its one hard constraint is timing: entitlement is assessed when you take up your duties in France, and it cannot be claimed retroactively.
Who qualifies
The regime (article 155 B of the French tax code) applies to employees and assimilated directors taking up duties in France — direct hire from abroad or intra-group transfer — who were not French tax residents during the five calendar years before taking up the role. Nationality is irrelevant: it works the same way for a British executive joining a Paris firm as for a French national returning with a contract.
What it exempts, for up to eight years
- The impatriation premium — the part of your package linked to coming to France — exempt at its real amount or under a flat option, within statutory ceilings;
- half of your foreign-source passive income: dividends, interest, certain capital gains on foreign securities;
- and, under a separate provision — Article 964 of the French tax code, not Article 155 B, and open to anyone who was not a French tax resident in the five calendar years before settling — only your French real estate falls within the scope of wealth tax (IFI) until 31 December of the fifth year following the year you become French-resident; foreign property stays outside it.
The benefit runs until 31 December of the eighth year after taking up duties (eight years). Two practical warnings: the premium must be identifiable — ideally written into the employment contract before signature — and changing employer generally ends the regime, except for qualifying intra-group moves.
Who the regime does not cover
The regime is built around an employer relationship, not simply around arriving in France. Article 155 B targets employees and assimilated company directors taking up duties here — hired directly from abroad or transferred within a group. A self-employed professional with no employer, someone working remotely for a foreign client with no French employer of record, or a retiree settling in France without taking up any role, all fall outside it, whatever their income or their reasons for moving. So does someone who resigns from a foreign job, moves to France on their own initiative, and only afterwards finds a French employer: the entitlement is assessed at the moment duties begin, and a move made before the job existed breaks the sequence the law requires.
What has to be decided, and when, once you do qualify is worked through in The impatriate regime in practice, decision by decision — the sentence the contract needs before signature, and the 50% relief on foreign investment income that most arrivals never think to ask about.
Frequently asked questions
Does the impatriate regime apply if I negotiate my own move?
The regime targets people recruited into France or transferred by their group — not those who move first and find a job later. The sequencing of your contract and your arrival matters, which is why it should be organised before signature.
How long does the French impatriate regime last?
Until 31 December of the eighth year following the start of your duties in France, as long as the conditions remain met.
Is my foreign investment income 50% exempt?
Foreign-source passive income — dividends, interest, certain gains on foreign securities — benefits from a 50% income-tax exemption during the regime, within the overall ceilings, provided the payer is established in a State or territory bound to France by an agreement containing an administrative-assistance clause against tax fraud and evasion (Article 155 B of the French tax code). The exemption covers income tax only: French social charges remain due on the full amount, the other half is taxed under normal French rules, and treaty relief may also apply.
Does the impatriate regime apply to self-employed professionals?
No. The regime covers employees and assimilated company directors taking up duties in France, whether hired directly or transferred within a group — it is built around an employer relationship. A self-employed professional with no employer, or someone working remotely for a foreign client with no French employer, falls outside its scope, whatever their income.
Can I combine the impatriate regime with relief under my home country's tax treaty?
Often, yes — the two answer different questions. The impatriate regime decides what France exempts from French tax; the applicable treaty then decides which country has the right to tax what remains, and can prevent your home country from also taxing income France has already exempted. Reading them side by side from the outset avoids gaps that only surface once a return has already been filed.
ÉTHIQUE ET PATRIMOINE, a French simplified joint-stock company (SAS), registered office at 41 rue Saint-Ferdinand, 75017 Paris, France, Paris Trade Register no. 803 414 796, VAT no. FR 40 803 414 796, registered with ORIAS under number no. 24001817 (www.orias.fr) — Financial investment adviser (CIF) no. 18002418, member of ANACOFI-CIF, a professional association approved by the Autorité des marchés financiers, and Anacofi-Courtage for its brokerage activity. Presence: Paris, Montpellier, Singapore, Hong Kong, Bangkok, Shanghai and Dubai.
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Book a callWritten by Stéphane Molère, Président d'Éthique et Patrimoine — page last reviewed on 2026-08-27 — rules quoted are those in force at that date.