Expat guide to the French annual tax return

The last thing on newly-arrived expats’ minds after they’ve settled down in their chosen French location is filing their tax returns, but the vast majority will need to get it done.

UK expats who draw any UK-based income are forced to get to grips with the French income tax system, with its returns having to be completed annually in May. The initial forms can be easily downloaded from the French Government’s website, with the pink 2047 form used to declare income earned overseas and the blue 2042 form used to declare all income, included that already declared on the pink form. France’s tax year runs between January and December, with arrivals part-way through the year only having to declare their income from the date they arrived.

For your first tax filing you’ll need to visit the local tax office to collect the relevant forms, all of which will automatically be sent to you for subsequent filings. It doesn’t matter if all your UK based income is taxed at source or your earnings are below the tax threshold, as all residents in France are obliged to send in a completed tax return. Due to the EU exchange of information laws, all information on non-French income and capital gains is sourced by the French tax authority, so the information on your return will be checked and compared.

You’re also required to declare all life insurance investments and bank accounts held overseas, and France and the UK have a double tax treaty ensuring you don’t get taxed twice once you’ve filled in the SI2009 form. Expats arriving in France with a pension lump sum from an overseas pension scheme will need to declare the amount as it’s taxable for French tax residents. There’s a 10 per cent tax-free allowance after which a 7.5 per cent tax is charged. Exemptions include lump sums originating from a civil service or military pension, although these still need to be declared.