Tax policy directorate – Bureau a

3 – Exemption of certain categories of income or profits from French sources 
received by persons not domiciled in France for tax purposes 
Gains from the transfer of transferable securities for valuable consideration that are made directly or 
through an intermediary by persons not domiciled in France for tax purposes and do not derive from 
substantial interests are exempt from income tax. This also applies to legal entities whose registered 
office is situated outside France. 
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Rate applicable since 1 January 2013. Prior to this date, the rate was 19% for gains realised. 
41
Rate applicable since 1 January 2014. This rate was 45% for amounts distributed in 2013 and 19% for 
capital gains realised before that date (BOI-RPPM-PVBMI-10-30-20-20160304). 

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Interest on deposits made by non-residents with credit institutions established in France, as well as 
interest on most bonds subscribed for by non-residents are also exempt, except for interest paid by 
these institutions in an uncooperative country or territory, irrespective of the tax domicile of the 
beneficiaries (see section §.2 above). 
Finally, salaried employees and senior managers treated in the same way for tax purposes (and certain 
non-salaried employees) who are called upon by a company based abroad to work for a limited period 
for a company based in France, and salaried employees and senior managers who are directly 
recruited in a foreign country by a company based in France, are entitled to exemptions in respect of 
their earned income. These arrangements apply to persons who were not domiciled in France for tax 
purposes during the previous five years and who set their tax domicile when taking up their position in 
France. 
Such “impatriates” are exempt until 31 December of the eighth year following the year
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in which they 
take up their position for the years when they are domiciled in France. The income tax exemption also 
applies to 50% of certain investment income and income from intellectual or industrial property rights 
received in other countries (“passive income”) and certain capital gains on the disposal of transferable 
securities and shares held in other countries.