Accounts and property held abroad
You hold a bank account opened abroad.
You hold a life assurance policy or a portfolio abroad.
You hold a bank account opened abroad and not declared.
Tax regime for accounts opened abroad
Private persons who are tax residents in France are required to declare in their income tax returns details of bank accounts opened, held, used or closed abroad.
This declaration is made by submitting form no. 3916 or in the form of a written note.
Life assurance policies opened with institutions established outside France must also be declared at the same time as the income tax return.
Failure to declare has a number of consequences:
- A fine of €1,500 is payable for each account or life assurance policy that has not been declared (amount increased to €10,000 if the account is opened in a state with which France has not concluded a convention on administrative assistance). This fine is time-barred after 4 years.
- Income generated on foreign accounts that has not been declared is subject to an income tax adjustment.
Tax adjustments resulting from failure to declare are subject to an increase of 80% and follow an intervention period extended to 10 years (3 years if the total holdings are less than €50,000).
If the taxpayer has never complied with the obligation to declare over the last 10 years and is not able to provide proof of the origin of funds held abroad, inheritance/donation tax is automatically applied at the rate of 60%.
Since the office for processing corrective statements was closed in January 2018, subsequent correction procedures have been directly managed by the local centres for public finances or in the case of larger amounts, by the national directorate for the audit of tax situations.
Altexis offers you support in disclosing corrections to your assets held abroad:
- We can help you file your income tax return and carry out declaration formalities regarding accounts held abroad.
- We can help you in the case of a tax inspection or with respect to the voluntary (spontaneous) disclosure of an account held abroad.