Double tax treaty France: how to avoid being taxed twice

Maître Alexis Germe Cross-border tax International taxation

Part of your income comes from another country: a pension, rent from a flat, a salary, dividends. Without a common rule, France and that other country could each tax the same sums in full. The good news is that you can usually avoid double taxation in France thanks to a double tax treaty, which shares out the right to tax between the two States and tells each of them how to neutralise the tax already paid. This guide explains how the France double tax treaty network works, with concrete British and American examples, and how to claim relief.

What is a double tax treaty with France?

A double tax treaty is an agreement, usually bilateral, between two States to avoid double taxation and prevent tax evasion. For each category of income, it decides which State may tax, whether that right is exclusive or shared, and how the State of residence must relieve any remaining double taxation.

In France, a duly ratified treaty prevails over domestic legislation under Article 55 of the French Constitution^[1]. A treaty never creates a tax, however. Under the approach laid down by the Conseil d’État, France’s highest administrative court (CE, Ass., 28 June 2002, no. 232276, Société Schneider Electric), the first question is always whether French law taxes the income; only then do you check whether the treaty prevents France from doing so^[2].

Treaties or agreements duly ratified or approved shall, upon publication, prevail over Acts of Parliament, subject, with respect to each agreement or treaty, to its application by the other party.
Article 55 of the French Constitution of 4 October 1958, unofficial translation ^[1]

Test your knowledge

3 questions to see whether this article can help you

1. You live in France and receive a private pension from a former UK employer. Under the France-UK treaty, where is it taxable?

Only in the United Kingdom Only in France, your State of residence In both countries, with no relief

2. You are a US citizen living in Paris. Can the United States still tax your worldwide income?

No, the treaty makes you taxable in France only Yes, but the United States grants a credit for French income tax Only if you spend more than 183 days in the United States

3. Where is rent from a flat in Bordeaux taxable if you live in the UK or the US?

Only in your country of residence Nowhere, thanks to the treaty In France, with relief in your country of residence

Reading a double tax treaty in three questions

1. Domestic lawDoes French law (or UK or US law) tax this income at all?
2. The treatyDoes the treaty leave that right to France, share it, or reserve it to the other State?
3. ReliefIf both States may tax, which one gives a credit or an exemption, and how much?

Which countries have a double tax treaty with France?

France has one of the widest treaty networks in the world, with well over a hundred conventions on income tax. The French tax administration publishes the official list in its Bulletin officiel des finances publiques (BOFiP), which records the treaties in force on 1 January 2026 and the taxes each one covers^[3]. The full texts are available on impots.gouv.fr^[4]. For British and American readers, the two key treaties are the following.

United Kingdom: the income tax convention signed in London on 19 June 2008, which entered into force on 18 December 2009 and applies in France from 1 January 2010 and in the UK from 6 April 2010 for income tax and capital gains tax^[3][5]. It has since been modified by the OECD Multilateral Instrument (MLI)^[6]. A separate convention of 21 June 1963 covers inheritance tax^[3].
United States: the convention of 31 August 1994 on income and capital, amended by protocols of 8 December 2004 and 13 January 2009^[3][7]. A separate convention of 24 November 1978 covers estates and gifts^[3]. The IRS publishes the English text and the US Treasury technical explanations^[8].

Both treaties follow the OECD Model structure, with their own rules. For a detailed article-by-article reading of the British treaty, including pensions and inheritance, see our guide to the France-UK tax treaty.

Am I tax resident in France, the UK or the US?

Everything starts with residence. If each country considers you resident under its own law, the treaty settles the conflict with a series of tie-breaker tests, applied in order: permanent home, centre of vital interests, habitual abode, nationality and, as a last resort, agreement between the two tax authorities (Article 4 of the France-UK treaty)^[5]. The France-US treaty follows the same logic, with one specific rule: France treats a US citizen or green card holder as a US resident only if that person has a substantial presence in the United States, or would be a US resident rather than a resident of a third State under the first tie-breaker tests (Article 4, paragraph 2)^[7].

The French domestic criteria (home, principal activity, centre of economic interests) are explained in our article on French tax residency rules.

Which country taxes what under the France double tax treaty?

The table below summarises the main allocation rules in the France-UK^[5] and France-US^[7] treaties for individuals. It is simplified: each article contains conditions and exceptions to check against your own facts.

Who may tax? France-UK and France-US treaties at a glance

Rent from French property	Taxable in France, where the property is situated (Article 6 of both treaties); the UK or US may also tax and must give relief
Gains on French property	Taxable in France (UK treaty, Article 14; US treaty, Article 13)
Salaries	Taxable where the work is done, subject to the 183-day exception for short assignments (UK treaty, Article 15; US treaty, Article 15)
Private pensions	UK treaty: taxable only in the State of residence (Article 18). US treaty: taxable only in the State where the pension scheme is established (Article 18)
US Social Security	Taxable only in the United States, including when paid to a French resident (US treaty, Article 18)
Government service pensions	UK treaty: taxable only in the paying State, unless the recipient is a resident and national of the other State only (Article 19). US treaty: covered by the pensions rule since the 2004 Protocol, so taxable only in the State where they arise (Article 18)
Dividends	Taxable in the State of residence; withholding in the source State capped at 15% for individuals (UK treaty, Article 11; US treaty, Article 10)
Interest	UK treaty: taxable only in the State of residence (Article 12)

This guide focuses on individuals. If you are doing business in France through a French company, our separate guide covers the company side, including permanent establishment under tax treaties.

How does France avoid double taxation: tax credit or exemption?

When you are resident in France and the treaty allows the UK or the US to tax an item of income, that income is still included in the calculation of your French tax. France then grants a tax credit, and the treaty sets its amount in one of two ways^[5][7][9].

Tax credit equal to French tax: an exemption in all but name

For most income, the credit equals the French tax attributable to that income. The French tax on it is therefore cancelled entirely, whatever the amount paid abroad, but the income still pushes up the rate applied to your other income. The French administration confirms that this mechanism amounts to exempting the foreign income while preserving progressivity, and gives the formula: tax on worldwide income multiplied by the ratio of net foreign income to total net taxable income^[9]. The France-UK treaty adds one condition: you must actually be subject to UK tax on that income.

Such tax credit shall be equal: (i) in the case of income other than that mentioned in subparagraph (ii), to the amount of French tax attributable to such income provided that the resident of France is subject to United Kingdom tax in respect of such income; (ii) […] to the amount of tax paid in the United Kingdom in accordance with the provisions of those Articles; however, such credit shall not exceed the amount of French tax attributable to such income.
France-UK double taxation convention of 19 June 2008, Article 24, paragraph 3(a), authentic English text ^[5]

Foreign tax credit: relief limited to the tax paid abroad

For certain income listed in the treaty (in particular dividends, directors’ fees and income of artists and sportspeople), the credit equals the tax actually paid in the other State, capped at the French tax on that income^[5][7]. If the foreign tax is lower than the French tax, you pay the difference in France. If it is higher, the excess is not refunded. In both treaties, only tax « effectively and definitively borne » counts: tax withheld in excess of the treaty rate must be reclaimed from the source State, not credited in France^[5][7].

How do the UK and the US give relief for French tax?

If you are resident in the UK or the US, the logic is reversed: France taxes what the treaty allows (typically income from French property), and your country of residence gives relief.

United Kingdom: French tax on French-source income is allowed as a credit against UK tax computed on the same income (Article 24, paragraph 1)^[5]. The credit cannot exceed the UK tax on that income. HMRC explains the calculation in helpsheet HS263, Relief for foreign tax paid^[10].
United States: the US grants its citizens and residents a credit for French income tax, in accordance with and subject to the limits of US law (Article 24, paragraph 2)^[7]. Individuals claim it on Form 1116. The IRS points out that you cannot take a foreign tax credit on income you have excluded under the foreign earned income exclusion^[11].

A point of attention for UK residents: the France-UK treaty covers French CSG and CRDS, but Article 24, paragraph 2(c), only treats the taxes in points (i) to (iv) of Article 2 as « French tax » for the UK credit^[5]. The French tax administration reads this as expressly ruling out any credit for CSG and CRDS against UK tax^[9].

Case study

British retiree in the Dordogne with two UK pensions

A British national, formerly a civil servant and then a private sector employee, settles in the Dordogne and becomes tax resident in France. He receives a private occupational pension from a UK scheme and a UK civil service pension.

His private pension is taxable only in France (Article 18): he asks HMRC to stop deducting UK tax using form France-Individual. His civil service pension remains taxable only in the UK, because he is not a French national (Article 19, paragraph 2). France nevertheless includes it in his French return and grants a credit equal to the French tax on it.

Assume, purely for illustration, that his net pensions total €35,000, including €15,000 of civil service pension, and that the French tax on the whole is €3,500. The credit is €3,500 × 15,000 / 35,000 = €1,500. He pays €2,000 in France, at the rate that reflects his total income, and UK tax on the civil service pension only.

Illustrative example with rounded, hypothetical figures, not a real client case. Every situation calls for a personalised analysis.

France-US double taxation: the specific case of American citizens

The United States taxes its citizens on their worldwide income wherever they live, and the France-US treaty preserves that right through a saving clause: apart from listed exceptions, the US may tax its citizens and residents as if the treaty did not exist^[7]. An American living in France is therefore taxable in both countries, and the treaty organises who gives way.

Notwithstanding any provision of the Convention except the provisions of paragraph 3, the United States may tax its residents, as determined under Article 4 (Resident) and its citizens as if the Convention had not come into effect […].
France-US tax convention of 31 August 1994, Article 29, paragraph 2, as replaced by the Protocol of 13 January 2009, authentic English text ^[8]

The exceptions in paragraph 3 matter in practice. They include Article 18, paragraph 1, on pensions and social security, and Article 24 on the elimination of double taxation^[7]. As a result:

US Social Security paid to a French resident is taxable only in the United States; France includes it for the rate and grants a credit equal to the French tax^[7];
conversely, French social security benefits paid to a US resident or to a US citizen, and pensions from a scheme established in France paid to a US resident, are taxable only in France, even where the recipient is a US citizen^[7];
for a US citizen resident in France, France extends its « exemption-type » credit to certain US-source dividends and interest, for example from widely traded US companies, provided the taxpayer proves compliance with US federal income tax obligations (Article 24, paragraph 1(b))^[7].

Case study

American employee in Lyon with a US share portfolio

A US citizen moves to Lyon to work for a French company and becomes tax resident in France. She also holds shares in large US listed companies.

Her salary is taxable in France, where she works (Article 15). Under the saving clause, the US also taxes it, but grants a credit for the French income tax paid (Article 24, paragraph 2), claimed on Form 1116. Her US dividends remain taxable in the United States under the saving clause, as for any US citizen: the 15% cap on US withholding (Article 10) is designed for French residents who are not US citizens. Because she is both a French resident and a US citizen, France grants a credit equal to the French tax on those dividends, provided she shows that she has met her US federal tax obligations (Article 24, paragraph 1(b)). That credit also covers the French social charges on the dividends: the French tax authorities treat CSG and CRDS as taxes covered by the France-US treaty^[17], and the official notice to form 2047 states that a credit equal to the French tax extends to the social charges^[18].

Illustrative example, not a real client case. The outcome depends on the exact facts and must be checked individually.

How to claim double tax relief in France, the UK and the US

Treaty relief is rarely automatic. Depending on your situation, the main steps are:

Declare foreign income in France: French residents report income received abroad on form no. 2047, attached to their annual return, and claim the corresponding tax credit^[12];
Stop UK tax at source: French residents receiving UK pensions, purchased annuities, interest or royalties use form France-Individual to apply for relief at source or a repayment of UK income tax^[13];
Prove your residence: the France-UK treaty requires a certificate of residence from the other State’s tax authority to claim its benefits (Article 30)^[5]. In France, form 5000-SD is the residence certificate intended for a foreign administration^[14]; in the US, Form 6166 is obtained by filing Form 8802^[15];
Disclose treaty positions in the US: a US taxpayer who relies on a treaty provision to reduce US tax generally discloses it on Form 8833^[16];
Use the mutual agreement procedure if you are still taxed twice: under the France-UK treaty as modified by the MLI, the case may be presented to either tax authority, within three years from the first notification of the taxation, or six years from the end of the tax year concerned (Article 26)^[6]. The France-US treaty also provides a mutual agreement procedure (Article 26)^[7].

Beware of anti-abuse rules: since the MLI, the France-UK treaty contains a principal purpose test: a treaty benefit may be refused where obtaining it was one of the principal purposes of an arrangement^[6]. The France-US treaty has its own limitation on benefits article (Article 30)^[7].

Why speak to a tax lawyer about the France double tax treaty?

Each treaty has its own definitions, protocols and anti-abuse clauses, and both States apply their domestic rules first. A misreading can mean paying twice or, conversely, claiming an exemption the treaty does not grant and facing a reassessment. Taking cross-border tax advice in France means identifying the applicable text, checking how it interacts with French law and securing your returns on both sides of the Channel or the Atlantic.

Taxed in two countries, or about to move to or from France? Ask Alexis Germe to review your double taxation, with your latest tax assessments from both States at hand: they make it possible to check quickly whether the treaty has been applied correctly and what may still be reclaimed.

Sources and reference texts

Frequently asked questions about double tax treaties with France

How can I avoid double taxation in France?

By relying on the double tax treaty between France and your other country. It decides which State may tax each type of income and requires the State of residence to grant a tax credit or an exemption. You must declare the income correctly in both countries and claim the relief provided by the treaty.

How many double tax treaties does France have?

France has one of the widest treaty networks in the world, with well over a hundred conventions on income tax. The French tax administration publishes the official list of treaties in force on 1 January 2026, with the taxes each one covers, in the BOFiP, and the full texts are available on impots.gouv.fr.

Does the France-US tax treaty stop the US taxing American citizens in France?

No. Under the saving clause, the United States may tax its citizens as if the treaty did not exist, subject to listed exceptions. The treaty then organises relief, mainly through a US credit for French income tax and specific French credits for certain US income.

Does a double tax treaty override French tax law?

A duly ratified treaty prevails over French domestic legislation under Article 55 of the French Constitution. A treaty never creates a tax, however: the first question is always whether French law taxes the income, and only then whether the treaty prevents France from doing so (Conseil d’État, 28 June 2002, Société Schneider Electric).

What can I do if I am still taxed twice despite a treaty?

You can first file a claim with the tax authority concerned. If the disagreement persists, the treaty allows you to request a mutual agreement procedure between the two States, within strict time limits. Acting quickly is essential.