{"id":1765,"date":"2026-08-10T20:21:23","date_gmt":"2026-08-10T20:21:23","guid":{"rendered":"https:\/\/citizenconsult.com\/exit-tax-en-france-un-guide-pour-les-expatries-francais\/"},"modified":"2026-09-17T19:11:05","modified_gmt":"2026-09-17T19:11:05","slug":"exit-tax-in-france-a-guide-for-french-expatriates","status":"publish","type":"post","link":"https:\/\/citizenconsult.com\/en\/exit-tax-in-france-a-guide-for-french-expatriates\/","title":{"rendered":"Exit Tax in France: A Guide for French Expatriates"},"content":{"rendered":"

Exit tax, or the \u201cdeparture tax\u201d, is a mechanism that raises many questions, particularly among taxpayers considering expatriation and transferring their tax residence outside France.<\/p>\n

Exit tax was initially introduced to combat tax avoidance. Its purpose is to prevent certain capital gains \u201cgenerated\u201d in France from escaping taxation when assets are sold after the taxpayer has moved to a country with more favourable taxation.<\/p>\n

This article sheds light on the essential aspects of this tax (I), from its scope of application (II) and taxation conditions (III), to the possibilities for deferred payment (IV), expiration of the deferral (V) and tax relief (VI). It also provides a specific focus on Mauritius (VII).<\/p>\n

I. What is Exit Tax?<\/h2>\n

Exit tax aims to tax unrealised capital gains on certain financial assets (securities, shares, corporate interests, ETFs \u2013 Exchange Traded Funds, etc.) when a taxpayer transfers their tax residence outside France.<\/p>\n

See: Article 150-0 A, I-1 of the French General Tax Code (CGI).<\/p>\n

It also applies to receivables arising from additional consideration (e.g. an \u201cearn-out\u201d following the sale of a business), as well as certain deferred taxation mechanisms, particularly those subject to Article 150-O B ter of the CGI.<\/p>\n

See: Article 167 bis of the CGI.<\/p>\n

The taxable event is the transfer of tax residence abroad, even if the securities themselves have not been sold.<\/p>\n

II. Scope of Application of Exit Tax<\/h2>\n

Exit tax applies only to taxpayers who have been French tax residents for at least 6 of the 10 years preceding the transfer of their tax residence, except in relation to existing tax deferrals.<\/p>\n

With regard to unrealised capital gains on securities, an additional condition applies: the taxpayer must hold financial assets worth more than \u20ac800,000, or representing more than 50% of the share capital or voting rights of a company.<\/p>\n

At present, exit tax does not yet apply to cryptocurrencies. However, this is currently a topic under discussion at Bercy, the French Ministry of Finance.<\/p>\n

III. Exit Tax Taxation Conditions<\/h2>\n

Exit tax becomes due as a result of transferring one\u2019s tax residence outside France.<\/p>\n

Unrealised capital gains are currently calculated and taxed at the flat rate of 30%, consisting of:<\/p>\n