I am an employee of the central government, a regional/local governement or the hospital civil service

Definition

This information is for employees of the central government, a regional/local government or the hospital civil service who perform their duties or are on assignment in a foreign country.

These agents include civilian and military personnel who are either civil servants or salaried workers (both French nationals and non-French nationals) whose employment contract is with the French State and who work abroad in this capacity.

Special cases

You are a civil servant in one of France's overseas territories or communities, or in a country that taxes earned income : under international tax treaties, your earnings are not liable for taxes in France, and for the purposes of other income liable for tax in France you are considered to be a "non-resident".
When public-sector earnings are taxable in the State or territory where the work is performed, a civil servant is deemed to be a non-resident if he or she earns other income liable for tax in France.

You are an employee of the central governement, a regional/local governement or the hospital civil service, seconded to a private sector organisation. In principle, you are deemed to be a non-resident for tax purposes. Your situation is similar to that of a salaried employee abroad.

You are a member of the military : you are a central government employee.

Taxation of your earnings

In principle, unless otherwise stipulated in international tax treaties, you are resident of France for tax purposes and your public-sector earnings are taxable in France.

If your household remains in France

You are liable for tax in France on all your earnings, including income for your work abroad. Your liability is unlimited, and covers your earnings worldwide, both in France and abroad. You have to declare your earnings online. You should file your income tax return with the tax department with jurisdiction over your main residence in France. Your tax is calculated using the same rules that apply to residents of France:

  • If the tax you pay in the country where you work is equal to or greater than two-thirds of what your tax bill would be in France, your wages are completely exempt from French income tax. Your household’s other income is taxable in France under the standard procedure ;

  • If the tax you pay in the country where you work is less than two-thirds of what your tax bill would be in France, your wages earned abroad are taxable at the same rate as what you would have earned in France for the same activity.

Any remuneration supplements you are paid for living in the other country are exempt from income tax in France.

However, to be eligible for this exemption, you must meet all of the following conditions :

  • The remuneration supplements are paid for periods worked abroad in the employer’s direct and exclusive interest ;

  • They are justified by a physical transfer requiring residence of at least 24 hours in the other country ;

  • They are determined before you leave France, are calculated based on the length, number and place of the periods of work abroad, and account for less than 40% of the remuneration you would have received had you stayed in France.

In addition, as a French tax resident, you are required to notify us of the references of bank accounts, life insurance policies and digital asset accounts opened, held, used or closed abroad (return 3916 and/or 3916 bis, available online or on paper, to be enclosed with your income tax return 2042). For more information, you can consult the following page :" Declaring foreign bank accounts and life insurance policies held abroad ".

If your household is outside of France

If your household is outside of France and you are not, in the country where you work, liable for personal income tax on all of your earnings – less your French earnings other than your actual wages (income from property or investments, etc.) – your wages and salaries are liable for taxes in France. Your liability is unlimited, and covers your earnings worldwide. Your tax will be calculated using the same rules that apply to residents of France.

Please note : if your household is outside of France and you are, in the country where you work, liable for personal income tax on all of your earnings, the wages for your work abroad are not liable for taxes in France.
However, your other French earnings (e.g. rental income), and subject to international tax treaties, will be taxed by the Individual Tax Department for Non-Residents (Service des Impôts des Non-Résidents). Your taxes will be calculated using the progressive income tax scale, with a minimum rate of 20%.

Taxation after retirement

When you retire and you residence for tax purposes is outside France, your pension are liable for tax either in France or in the country of residence. This depends on the tax treaty that exists between France and your country of residence. To learn more, please refer to the information about pensions on return no 2041 E.

Please note: if your residence for tax purposes is in France, you are taxable under the standard procedure.

 

UPDATED DINR PART - AUGUST 04, 2022