According to a report from the French tax office, one in four French income tax returns submitted by non-residents still requires manual intervention.
Non-Resident Tax Office
France has a dedicated department for dealing with the tax affairs of people who live outside the country: the Direction des impôts des non-résidents (DINR).
Based in Noisy-le-Grand, near Paris, it is responsible principally for the income tax affairs of non-residents who have income from France that remains taxable here under French law and the relevant international tax treaty. That is particularly the case for French rental income.
Local property taxes, including taxe foncière and any taxe d'habitation still payable, remain the responsibility of the local tax office (service des impôts des particuliers, or SIP) for the area where the property is situated.
The problem identified in the Senate concerns the computer systems used by the French tax administration. Many were originally designed around taxpayers living in France and do not readily accommodate the different rules that apply to people living abroad.
Non-residents are generally liable to French income tax on income from French sources, but the precise position depends on the type of income and the double-taxation agreement between France and the country where they live.
There are also special rules for calculating the tax. Non-residents may be subject to a minimum tax rate, but can opt for an average rate calculated by reference to their worldwide income (taux moyen) if this produces a lower French tax bill.
These factors make it harder to process returns automatically.
In a written question, Senator Évelyne Renaud-Garabedian, who represents French citizens living abroad, highlighted the consequences. Manual corrections take up staff time that could otherwise be spent responding to enquiries and helping taxpayers. They also create the possibility of errors and longer processing times. We have previously reported on the deficiencies in the tax service to non-residents.
The DINR’s 2025 activity report, which the senator quoted, shows that 25% of returns needed manual reprocessing in 2025, down from 30% in 2024.
New Simulator
In a written reply published last month the government confirmed that a dedicated tax simulator is being prepared.
It is intended to allow non-residents to estimate their French income tax before submitting their annual return. In particular, it will compare the result obtained using the minimum tax rate with the amount payable under the taux moyen.
The choice between the two methods can make a difference to the final tax bill, but working out which is more favourable is not always straightforward.
However, the Government says that international tax treaties will not be incorporated into the simulator because of their complexity.
The simulator should therefore help with comparing the two methods of calculating French tax, but it will not provide a complete assessment of every non-resident's tax position. Taxpayers will still need to check the relevant treaty provisions where these affect their income.
Recent improvements to the tax administration of non-residents include online filing for people liable only for the property wealth tax (IFI), the automatic application of the taux moyen, an online route for couples where one partner lives in France and the other abroad, electronic filing through professionals, and the tax rate now shown on the tax situation notice.
The Government has not given a date for the launch of the simulator.
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