Exit Tax Declaration
Exit Tax in Brief
Exit Tax is a crucial topic for expatriation candidates considering leaving the country.
Exit Tax is a tax obligation applied when you transfer your tax residence out of France. This means that if you decide to leave the country, you may be subject to this specific declaration obligation called "Exit Tax."
In the vast majority of cases, Exit Tax is a simple declaration that notifies the tax authorities of your departure from France and freezes the amount of capital gains accrued on the ownership of shares or stocks in companies.
Indeed, to avoid paying Exit Tax upon leaving France, it is necessary to request a payment deferral from the tax authorities for the latent capital gains, which will often be released at the end of the Exit Tax period, which is 2 years or 5 years depending on the value of the shares on the transfer date.
It is essential, therefore, to understand the rules and procedures related to Exit Tax to avoid unpleasant tax surprises.
Who is Affected by Exit Tax?
Exit Tax applies to French residents who have decided to transfer their domicile abroad and who hold social rights or company shares with a total value of at least €800,000 or representing at least 50% of the social profits of a company.
If you are subject to Exit Tax, the Exit Tax declaration must be submitted to the tax authorities no later than 90 days before your departure from France.
Honoré Patrimoine's firm assists you in managing the entire Exit Tax procedure:
- Determine the scope of Exit Tax liability,
- Prepare the initial Exit Tax declaration,
- Request the application of the tax deferral to the tax authorities,
- Provide the necessary guarantees for the deferral,
- Act as a tax representative,
- Prepare follow-up Exit Tax declarations,
- Claim the reduction of Exit Tax.
If you wish to involve us in your Exit Tax case, we invite you to contact us to accompany you and efficiently manage the tax implications of your departure from France, as well as the resulting declaration obligations.