2022 French income tax and real estate wealth tax returns – General informations

As every year, the filling and submission of the annual French income tax and real estate wealth tax returns will start on 13 April.

To make it easier to understand the French tax system, we would like to remind you of some important rules:

• The French fiscal year runs from 1 January to 31 December;
• Both resident and non-resident individuals have an annual French income tax return filing obligation;
• The tax bill will be assessed in August of the following year (i.e. August 2023 for the 2022 income) and any balance due will be due in four instalments in September, October, November and December of the following year (i.e. 2023 for 2022 tax year). Likewise, if a refund is ultimately due this will be issued in September/October of the following year;
• France has a regime of joint taxation for married couples and individuals considered as legally recognised couples, “PACS” (Pacte Civil de Solidarité). Income tax is assessed on the combined income of the members of the household including dependents. There is no option to file separately, except in the first year of marriage and in some particular situation (spouses separated);
• Children over the age of 18 are generally taxable separately under French tax rules. However, they can ask to be considered as ‘dependents’ if they are either; under the age of 21 or are under the age of 25 and are students (children in full time education, school, or university satisfy this condition;
• Electronic filing is mandatory for all individuals (except new taxpayers who will have to fill the tax return by paper before 23 May);
• Electronic filing may benefit from a later filing deadline depending on the individual’s personal address which is used to determine the tax centre for tax filings;
• 🕛 The 2022 French income tax return deadlines are as follows:

– 📌Departments No. 01 to 19 (zone 1) and non-residents Thursday 25 May 2023 at 23:59;          – 📌Departments No. 20 to 54 (zone 2) Thursday 1 June 2023 at 23:59;
– 📌Departments No. 55 to 974/976 (zone 3) Thursday 8 June 2023 at 23:59.

• If the income tax liability exceeds €300 then the payment must be made via the French Ministry of Finance website: impots.gouv.fr. Payments received that do not adhere to this guideline will incur a penalty of 0.2% of the balance due.

Annual Tax Calendar – Relevant French Dates and Deadlines

French Real Estate Wealth Tax (IFI) – Impôt sur la Fortune Immobilière

• The IFI is assessed to the extent that the value of the taxpayers’ real estate net assets exceeds €1.3 million;
• Taxpayers who have not been French tax resident in the five previous tax years will be exempt from the real estate wealth tax on their non-French real estate assets up to the 31 December following the fifth anniversary of arriving in France;
• Foreign nationals may be protected by tax treaties for the avoidance of double taxation. Foreign wealth tax, if any, is usually creditable against French real estate wealth tax. In certain cases, individuals may only be taxable on their French-situs real estate net assets and not on their worldwide real estate net assets if their residency period in France is less than five full calendar years;
• The real estate wealth tax return is filed together with the income tax return.

If you need our assistance, do not hesitate to send us a message via the contact form.

The firm’s team, dedicated to the tax missions is led by Nabil Addad, Partner in the Paris office.

Nabil Addad is a lawyer registered at the Paris Bar and partner of Friedland AARPI.

Before heading the tax practice at Friedland AARPI, Nabil began his career in personal and patrimonial taxation in Switzerland and then joined the global mobility department of Deloitte in La Défense, France.

He advises and litigates with a customer base composed mainly of individuals on personal and wealth tax issues, as well as with international groups on the management of tax and social issues of their employees in the context of their global mobility policy.

He is a member of the Institut des Avocats Conseils Fiscaux (IACF) and the International Association of Lawyers (UIA).

Nabil speaks French, English and Arabic.