A special tax system for expatriates

The 2017 Finance Act amends the special exemption scheme for expatriates, extending its benefits from five to eight years.

The amended scheme is open to employees and company directors, regardless of nationality, coming to work full-time in France and who assume their new position after July 6, 2016, on condition that:

• They have not been a tax resident in France during the five years prior to the date they started their job.
• They are resident in France for tax purposes.

The expatriate exemption scheme applies for up to eight years starting in the first full year after expatriates assume their new position. Beneficiaries of the system receive partial exemption on their income tax for the years they are tax resident in France.

In addition, effective January 1, 2017, compensation and benefits related to the expatriate’s activities are now exempted from the payroll tax.

For further information on the scheme, please see the Tax section.