As a non-resident of France for tax purposes, you are taxed only on your French income taxable in France under the tax treaty executed between France and your country of residence. Your tax may be calculated in two ways:

• Application of the progressive income tax scale with a minimum tax rate;
• Optional application of the average tax rate.

The progressive income tax scale or the minimum rate

The tax rate for non-residents, as for residents for tax purposes, is calculated using the progressive income tax scale.

However, non-residents are only taxed on their French income and subject to the applicable tax treaty, or on income for which taxation is allocated to France by the tax treaty. This means that they are subject to a minimum tax rate.

The minimum tax rate is set at 20% (or 14.4% for income earned in France’s overseas départements) for income under a certain threshold set at €29,373 for income received in 2024. This minimum rate is increased to 30% (or 20% for income earned in France's overseas départements) for income above this threshold.

Provided the rate resulting from application of the scale is higher than the minimum rate, the progressive income tax scale rate will apply; these are ordinary law arrangements. 

The average rate

As non-resident, you are entitled to benefit from the average rate for taxation of your income when this is more favourable.
To do so, you must report all your French and foreign income and be able to justify it.

The average rate is determined by using the progressive income tax scale, calculated by taking your worldwide income. To identify the net taxable worldwide income and the applicable average rate, foreign income will be subject to the same deductions and allowances as French income. These may be fixed deductions or allowances, or deductions of actual expenses.

Depending on the relevant income category and the arrangements for taxing this income, you will have to report either a gross amount, or an amount after deduction of expenses:

• For wages, salaries and pensions, a fixed deduction of 10% is applied automatically to taxable income.
• For your property income, if you are subject to the simplified tax regime (régime micro foncier), a 30% allowance (fixed assessment of your expenses) is calculated automatically. However, for the actual tax regime (régime réel foncier), you must report the income net of expenses.

Only your French income is taxed at the average rate. It only applies if it is more favourable for the taxpayer and enables the minimum rate to be eliminated.

In addition, opting for the average rate allows maintenance payments to be deducted for the calculation of this rate, provided these allowances are taxable in France for the beneficiary and have not already given entitlement to a tax break for the taxpayer having paid them in their country of residence.

Example:

A pensioner, who is single (tax household with one unit) and residing outside France, received the following income in 2024:

• French income: net property income of €10,000
• Foreign income (not taxable in France): net pension (after special 10% allowance) of €10,000

The net worldwide income was €20,000.

When they file their income tax return, they opt for application of the average tax rate.

Step 1: calculation of income tax

The tax is calculated by taking account of the household’s entire income even that which is not taxable in France. The tax is calculated using the effective progressive income tax scale (2024 in this case).

The income tax amounts to €935.33.

Step 2: calculation of the average tax rate

The average tax rate is determined by dividing the total tax by the worldwide income, and then multiplying it by 100.

So, the average tax rate is: (935.33 / 20,000) x 100 = 4.67%

Step 3: application of the average rate to French income

The average rate obtained applies to the €10,000 of French income.

So, by applying the average rate, the amount of tax owed is: €10,000 x 4.67% = €467

Step 4: comparison with the minimum 20% rate

The minimum rate is 20%.
The average rate is 4.67%.

As the average rate is less than the minimum rate, the average rates applies as it is more favourable.

The final tax owed on French income is therefore €467 (instead of 10,000 x 20% = €2,000)

Choose the average tax rate when you file your return online

When you file your income tax return online, the worldwide income is calculated automatically. With the exception of specific cases, you are provided with an estimate of your tax with application of the average rate for information.

To receive this estimate, at step 3 “Revenus et charges” (Income and expenses), simply go to the “Non-résidents” (Non-residents) section and check the “Bénéficier du taux moyen d'imposition (s'il est plus favorable)” (Benefit from the average tax rate if it is more favourable) box. Once you have entered your French income, the “Revenus de source française et étrangère retenus pour le calcul du taux moyen” (French or foreign income used to calculate the average rate) screen will be displayed. For each income category (wages, salaries, pensions, etc..), you must add your French and foreign income that is taxable in your country of residence.

In all cases, you should check the box to benefit from the average tax rate as the tax authorities only apply this rate if it is more favourable for you.

If you do not have an Internet connection and you file “paper” returns

In this case, to benefit from the average rate, you must fill in box 8TM of return no. 2042-C by entering the amount of worldwide income of your tax household, previously reported on form 2041-TM by specifying the nature and amount of each category of income.
Whether you file your returns online or in paper format, you will have to make relevant supporting documents available to the tax authorities, translated into French and presented upon request:

• A copy of your income tax return filed in your country of residence;
• A certified true copy of the tax assessment notice issued by the tax authorities in that country;
• Otherwise, pending presentation of these documents, form no. 2041-TM that permits you to make a sworn declaration as to the accuracy of the information provided.

If you have not done so when filing your income tax return, you can:

• opt for the average rate using the online correction service available from early August to early December of the year when your income tax assessment notice is made available;
• send a request in order to benefit from the average rate via the secure messaging system in your personal account or by post to the following address:

Service des Impôts des Particuliers Non-Résidents,
10 rue du Centre,
TSA 10010, 93465 Noisy-le-Grand Cedex, France.

In this case, you should enclose all the necessary supporting documents (see above). In all cases, submitting a request via the secure messaging system will ensure that it is duly received by the relevant department.

For more information on filing your income tax return, you can consult the following factsheets:

• Do I have to declare income and pay taxes in France if I am a non-resident?
• I am a non-resident. Assessment and declaration of wages, salaries and pensions.
• As a non-resident who receives income from real property, is this property income or business income, and how do I declare it?

UPDATED DINR PART - MARCH 10, 2025