ExemptionIn effectIncome taxNational

Expanded tax regime for inbound expatriates

Article 121 of the economic modernisation act creates Article 81 C of the General Tax Code, which expands the tax regime for people coming from abroad to work in France. Inbound employees are not taxed on the pay elements linked to their move to France or, at their option, on 30% of their pay. Subject to approval, the 30% exemption is extended to some self-employed people settling in France by 31 December 2011. The share of pay for work performed abroad is exempt. Some foreign-source income (investment income, royalties, capital gains on securities) is 50% exempt. These benefits last until 31 December of the fifth year after taking up the post. For the wealth tax, new residents are taxed only on their assets located in France for five years.

Measure originators

InitiatorGVT
Christine Lagarde
Gouvernement
Impact on public finances

No official estimate found for this measure.

Effective date
1 January 2008

Measure impact

Executives and managers recruited abroad, and with approval some self-employed people and investors, can exempt part of their pay and half of some foreign income for about five years. People settling in France are subject to the wealth tax only on their French assets for five years.

Official references

Law number: Loi n° 2008-776 du 4 août 2008 (LME), art. 121
Official Journal: JORF du 5 août 2008

Procedure timeline

Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.

100%
6 / 6 steps
Completed
6 August 2008

Administrative implementation

Application

Entrée en vigueur de la mesure et mise en œuvre par l'administration

Entrée en vigueur de la loi ; le volet impôt sur le revenu s'applique rétroactivement aux prises de fonctions intervenues à compter du 1er janvier 2008.
Completed
4 August 2008

President of the Republic signature

Promulgation

Publication au Journal officiel

Promulgation de la loi n° 2008-776 de modernisation de l'économie, publiée au Journal officiel du 5 août 2008.
Completed
22 July 2008

Joint committee

Parliamentary process

Désaccord éventuel

Vote result
Adopted
Adoption du texte de la commission mixte paritaire par l'Assemblée nationale le 22 juillet 2008 (TA n° 176) et par le Sénat le 23 juillet 2008 (TA n° 139).
Completed
10 July 2008

Debate and vote

Parliamentary process
Vote result
Adopted
Adoption en première lecture par le Sénat (TA n° 136, 2007-2008).
Completed
17 June 2008

Debate and vote

Parliamentary process

Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)

Vote result
Adopted
Adoption en première lecture par l'Assemblée nationale, après déclaration d'urgence (TA n° 159).
Completed
28 April 2008

Council of Ministers

Internal validation

Validation interne

Actors
Christine Lagarde
Projet de loi de modernisation de l'économie (AN n° 842) présenté par Christine Lagarde, ministre de l'économie, de l'industrie et de l'emploi, et enregistré à la présidence de l'Assemblée nationale.