Question 1

How does the flat tax (PFU) work on dividends and capital gains in France?

Accepted Answer

France's Prélèvement Forfaitaire Unique (PFU), commonly called the flat tax, applies a single 30% rate to most investment income: dividends, interest, and capital gains on the sale of financial assets. The 30% breaks down as 12.8% income tax and 17.2% social charges (CSG/CRDS).

The PFU applies automatically unless you opt out. If your marginal income tax rate is lower than 12.8%, you can choose instead to have investment income taxed under the progressive barème like ordinary income. This elect

Question 2

What is the IFI wealth tax in France, and who has to pay it?

Accepted Answer

The Impôt sur la Fortune Immobilière (IFI) replaced the old ISF wealth tax in 2018. Unlike the ISF, which covered all wealth, the IFI applies only to net real estate assets. It is due if your taxable real estate net worth exceeds €1.3 million on 1 January of the tax year.

Taxable assets include French and foreign real estate (for French residents), land, buildings, and real estate held indirectly through SCIs or shares in propertyholding companies. Financial assets, business assets, and cash ar

Question 3

How is cryptocurrency taxed in France?

Accepted Answer

In France, gains from selling cryptocurrency are taxed as capital gains on digital assets (plusvalues sur actifs numériques). Since 2023, the default tax rate is the flat tax PFU of 30%, comprising 12.8% income tax and 17.2% social charges. This applies to sales, swaps between cryptocurrencies, and conversions to fiat currency.

Gains are calculated as the difference between the sale price and the acquisition price, adjusted for the proportion of your total crypto portfolio sold. France uses an

Question 4

How does inheritance tax (droits de succession) work in France?

Accepted Answer

France levies inheritance tax (droits de succession) on assets received from a deceased person. The tax applies to assets located in France if neither the deceased nor the heir was a French resident, or to worldwide assets if either was a French resident. The rate depends on the relationship between the deceased and the heir.

For directline heirs (children, grandchildren, parents), a taxfree allowance of €100,000 applies per heir per parent. Above this, rates are progressive: 5% up to €8,072, t

Question 5

How does the PEA share savings plan work for CGT in France?

Accepted Answer

The Plan d'Epargne en Actions (PEA) is a French taxadvantaged share savings account for investing in European equities. The key tax benefit is that capital gains and dividends earned inside the PEA are exempt from income tax provided you do not make any withdrawals for at least five years from the date the account was opened.

Social charges of 17.2% are still due on gains at the time of withdrawal, even after five years. There is no income tax, however. Before the fiveyear mark, withdrawals tri

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Investments

How does the flat tax (PFU) work on dividends and capital gains in France?

What is the IFI wealth tax in France, and who has to pay it?

How is cryptocurrency taxed in France?

How does inheritance tax (droits de succession) work in France?

How does the PEA share savings plan work for CGT in France?