The Finance Committee of the French National Assembly has approved an amendment to the 2025 Finance Bill that changes tax residency rules for individuals.
This amendment introduces a “targeted universal tax” mechanism for French citizens who move abroad.
Under this provision, French nationals who have lived in France for at least three years within the past decade will retain their French tax residency if their new country’s tax burden on employment income, capital, or assets is at least 50% lower than France’s.
The amendment establishes a tax credit system to prevent double taxation for French citizens residing abroad. This system ensures they pay taxes equal to what they would owe in France, while allowing a credit for taxes already paid in their country of residence.
This measure now requires a National Assembly vote.
Earlier, the French government presented the Finance Bill 2025 during a press conference in Paris on Thursday, 10 October 2024.
