2025 French Tax Filing Season: Key Points to Keep in Mind

The 2025 tax filing season begins in a climate of increased fiscal uncertainty. While we await further details on the French government’s upcoming budgetary orientation, our focus turns to the reporting obligations for income earned in 2024, for which the key dates have just been released by the tax authorities.

Key Filing Dates:

• Online filing opens: Thursday, 10 April 2025
• Filing deadlines by department:
  • Departments 01 to 19 and non-residents: Thursday, 22 May 2025 at 11:59 p.m.
  • Departments 2A to 54: Wednesday, 28 May 2025 at 11:59 p.m.
  • Departments 55 to 976: Thursday, 5 June 2025 at 11:59 p.m.
  • Paper returns: Monday, 20 May 2025 (postmark as proof)

If you are eligible for the automatic tax return, it is essential to carefully verify the pre-filled information. In case of errors or omissions, you must amend and/or complete the return with accurate data.

All taxpayers are required to file a complete and accurate return, in accordance with Article 170 of the French General Tax Code (CGI), which imposes on all taxable persons the obligation to declare income, profits, family charges, and all elements necessary for the calculation of income tax.

1. Foreign Bank Accounts, Life Insurance & Digital Assets: Full Transparency Required

French tax residents must report all foreign bank accounts, life insurance or capitalization contracts, and digital asset accounts they hold, even if these accounts are inactive.

Failure to declare can result in a €1,500 fine per undeclared account, increased to €10,000 if the account is located in a non-cooperative jurisdiction (ETNC). If a reassessment of income tax and/or social contributions is made, a penalty of 80% may be applied. In some cases, a 60% automatic tax on the highest value recorded in the undeclared account during the audited years may apply.

The statute of limitations for the French tax authorities in these matters is extended to ten years.

In an era of automatic information exchange between EU and OECD member states, even unintentional omissions carry a high risk of detection. It is therefore strongly recommended to proactively regularize any previously undeclared accounts or policies.

2. Investment Income and Capital Gains: The Irrevocable Choice of Progressive Rates

As a rule, dividends, interest, and capital gains on the sale of securities are subject to the flat tax (PFU) at a total rate of 30% (12.8% income tax + 17.2% social contributions), excluding any additional high-income surtaxes.

However, taxpayers may opt for taxation at progressive income tax rates. This election is global and applies to all investment income and capital gains received during the year (CGI, art. 200 A, 2). It may be advantageous, especially where capital gains benefit from a holding period allowance for shares acquired before 1 January 2018 (CGI, art. 150-0 D, 1 quater).

This choice is irrevocable: once made, it cannot be reversed, even through tax audit or litigation (Ministerial Response Klinkert, JOAN, 24 October 2023, no. 3778).

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3. Deferred Capital Gains: Annual Reporting Required

If a capital gain benefits from a deferred taxation regime, such as when shares are contributed to a controlled company (CGI, art. 150-0 B ter), the taxpayer must still comply with annual reporting obligations.

As long as the deferral remains in effect, the taxpayer must declare it each year. This enables the tax authorities to monitor the situation and verify ongoing compliance, especially in the event of a reinvestment or disposal of the securities received in exchange.

Failure to submit this annual declaration can result in a 5% fine, capped at €1,500 per undeclared year (CGI, art. 1763).

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4. Impatriate Tax Regime: Formalizing Your Elections in the Annual Return

Employees and executives under the impatriate tax regime (CGI, art. 155 B) must expressly declare certain options in their annual tax return. Otherwise, they risk losing access to favorable tax treatment.

Two main elections must be made:

• A 30% fixed-rate allowance for the impatriation bonus (CGI, art. 155 B, II, 1°), instead of proving the actual bonus amount. This requires precise calculation of the reference salary (i.e. what a comparable employee would earn in France).
• A cap on the exemption: either 50% of total income, or 20% of exempt foreign-source income (CGI, art. 155 B, II, 4°). The choice can have a significant impact depending on income structure.

The reference salary is a key figure when opting for the 30% fixed allowance and must be carefully documented in advance.

🔗 For more information, see our article:
“Tax Benefits for Expatriates Moving to France: Understanding the French Regime”

5. Furnished Rentals: Micro-BIC or Real Regime?

For new landlords in furnished rentals, the choice between Micro-BIC and the real regime is a strategic one.

The real regime allows for the deduction of actual expenses and depreciation, which can significantly reduce taxable income or generate a tax-deductible loss. Despite the adjustments introduced by the 2025 Finance Act, the real regime often remains more favorable in the long term.

It is important to analyze the suitability of this option from the outset.
Taxlhab offers personalized support, including a tailored financial simulation aligned with your investment strategy.

You may opt for the real regime when declaring your activity (Form P0i or equivalent).
Under the 2022 Finance Act (art. 7, Law No. 2021-1900), the deadline for this option has been extended: you can elect the real regime up to the deadline for filing your income tax return (Form 2042) for the year of your first activity.

Alternatively, filing a fiscal return package (Form 2031 + annexes) by the second business day after 1 May also constitutes a valid option.

If you are already under Micro-BIC, you may switch to the real regime by notifying your local Business Tax Office (SIE) either via your secure messaging space on impots.gouv.fr or by post. This must be done by the filing deadline of the income tax return for the year preceding the year for which the option is to take effect.

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6. Leaving France? Two Tax Returns May Be Required

If you no longer earn any taxable French-source income, you must explicitly indicate this in the "additional information" section of your tax return.

If you leave France during the year and continue to earn French-source income after your departure, you are considered a non-resident from the date of departure and must file two separate tax returns:

1. Form 2042 (standard return):
   ➤ Report all income received from 1 January until your departure date.
   ➤ Any foreign-source income should be reported on Form 2047, then transferred to Form 2042.
2. Form 2042-NR:
   ➤ Report French-source income received after your departure, up to 31 December.
   ➤ This form can be selected when filing online (in the annexes section) or downloaded from impots.gouv.fr.

7. Exit Tax: Deadlines, Guarantees and Regularization

Exit tax obligations are subject to strict deadlines, which vary depending on the reporting requirement and whether the taxpayer requests a payment deferral.

Anyone transferring their tax residence outside France must file Form 2074-ETD (CERFA 14554) in the year following the transfer, by the same deadline as the annual income tax return (Forms 2042 and 2042-C).

The return must specify:

• The date of departure,
• The new foreign address,
• The amount of unrealized capital gains, contingent price clauses, and deferred capital gains,
• All elements necessary to calculate the tax due.

To benefit from a conditional payment deferral, the taxpayer must file Form 2074-ETD at least 90 days before the departure date, with:

• A sufficient guarantee, and
• The contact details of a tax representative in France.

Taxpayers moving to countries with mutual administrative assistance agreements (OECD-compliant) are automatically eligible for deferred payment and do not need to file this preliminary request (CGI, art. 167 bis, III).

A late or missing return does not automatically forfeit the right to defer payment, provided the taxpayer regularizes their situation within 30 days of receiving a formal notice from the tax authorities.

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Anticipate to Choose, Choose to Secure

Our team is available to assist you with all aspects of your 2025 tax reporting obligations, offering tailored advice and secure support. Don’t hesitate to reach out (contact@taxlhab.com) before clicking "submit".

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