Exit tax in France: regime, requirements and deferral options

Reading time: 9 minutes

⚖️ Legal framework and purpose

The French exit tax, set out in Article 167 bis of the Code général des impôts (CGI), seeks to prevent capital gains generated during residence in France from escaping taxation when the taxpayer transfers their tax residence before realising them abroad.

“Taxpayers who transfer their tax residence outside France are subject to tax on the unrealised capital gains linked to the social rights they hold.”
(Article 167 bis of the General Tax Code, Légifrance)

Since its creation in 2011 and the reforms of 2019 and 2023, the system defines the taxable event, thresholds, the deferral regime (sursis de paiement) and the causes of extinction.

➤ To understand the equivalent Spanish regime, read Exit tax in Spain: requirements and deferral within the EU/EEA.

👤 Taxpayers concerned

The tax applies exclusively to those who have been French tax residents for at least ⑥ of the ten years prior to departure.

The following incomes are also taxable:

• Unrealised capital gains on shares, social rights or participations.
• Variable future payments linked to a sale (complément de prix).
• Deferred capital gains from previous operations (Arts. 150-0 B, 150-0 B ter), known as plus-values en report or sursis d’imposition.

📊 Thresholds triggering the tax

The regime applies when, on the transfer date, any of the following conditions are met:

• The total value of the taxpayer’s foyer fiscal exceeds €800,000.
• The taxpayer (alone or with their family) controls more than 50% of a company’s profits.

These thresholds are calculated on the total movable assets subject to income tax (impôt sur les revenus).

🧮 Tax base and calculation rules

The unrealised capital gain is the taxable base, determined as the difference between the market value of the securities at the date of departure and their acquisition price or cost.

Reductions may apply depending on the holding period (Art. 150-0 D CGI) and, in some cases, an additional reduction (Art. 150-0 D ter), for instance upon retirement.

⏸️ Deferral regime (sursis de paiement)

Transfer within the EU/EEA

If the new residence is in an EU or EEA Member State with equivalent administrative cooperation and not considered a non-cooperative jurisdiction, automatic payment does not apply — it is temporarily suspended.

In this case, the tax will only become payable if an event occurs involving definitive transfer: sale, donation, death, or loss of the suspension conditions (such as leaving an EU country).

➤ If you’re interested in how the EU also established its own Exit Tax, read the article Exit tax in the European Union: key fiscal insights on company and asset relocation.

Transfer outside the EU/EEA

When the destination is a third country, such as Andorra or the USA, the taxpayer may apply for deferral, but must:

• Appoint a representative in France,
• Provide guarantees (usually 12.8% of the gross amount), and
• Comply with annual reporting obligations.

👉 This regime is developed in BOFiP-Impôts and detailed regulations.

🔚 Termination of the tax

The exit tax is definitively extinguished when:

• The securities remain in the taxpayer’s ownership without transfer for 2 years after departure (or 5 years if their value exceeds €2.57 million).
• The taxpayer returns to France with the securities within the periods indicated (2 or 5 years).
• Death occurs.
• The securities are fictitiously donated.

In such cases, if the tax was paid upon departure, a refund may be requested.

🧾 Declarations and formal obligations

• Declare capital gains and credits in the year following departure (annex form).
• Submit an annual update to the administration while the suspension lasts.
• Notify if any of the definitive extinction cases occur (sale, return, donation).

Failure to make these declarations may invalidate the granted deferral/suspension.

➤ To compare monitoring obligations with other European countries, read Exit tax in Europe: comparative overview and key differences.

🧩 Common cases

In practice, the following cases are frequent:

• Donations: may trigger the obligation to pay the tax, unless non-avoidance is proven.
• Exchanges or contributions after departure: governed by Arts. 150-0 B and 150-0 B ter. In most cases, deferral is maintained.
• Subsequent losses: allow adjustment or refund if the transfer value is lower.

🧭 Case law and administrative practice

This tax was created by Loi 2011-900 and amended by Loi 2018-1317.
The Conseil d’État confirmed its validity (CE 9-11-2020), and the French tax

dministration keeps it in force through BOFiP.

🤝 Conclusion and recommendation

The French exit tax combines a preventive logic with mechanisms of fiscal neutrality, particularly for transfers within the EU.

Its practical application requires rigorous planning and annual monitoring to avoid issues with the French administration.

If you are considering a change of residence and believe you may be subject to it, at ELYSIUM we combine French, Spanish, international and Andorran taxation to structure the operation with security, efficiency and full legal compliance.

Do not hesitate to schedule your call or contact us through the contact form.

Last review: November 2025.