Tax policy directorate – Bureau a

2 – Other income from French sources subject to deduction at source in 
discharge of tax liability or to withholding tax 
FINANCIAL INCOME 
Income from variable-yield securities (dividends and similar income): 
A 30% withholding tax in discharge of income tax liability is levied on dividends and similar income 
distributed by French companies to individuals not domiciled in France for tax purposes or to legal 
entities that do not have their registered office in France, other than certain undertakings for collective 
investment.
The rate of this withholding tax is reduced to 21% for dividends and distributions similar in nature to 
those eligible for the 40% allowance for individuals having their tax domicile outside France in an EU 
Member State or in another State which is party to the agreement on the European Economic Area and 
which has signed an administrative assistance treaty with France to combat tax evasion and 
avoidance.
The rate is increased to 75% for income and revenue paid outside France in a non-cooperative country 
or territory, regardless of the tax domicile of the individual receiving this income and revenue.
The rate is reduced, or the tax even waived altogether, under most international tax treaties. 
Directors' fees 
“Ordinary” directors' fees and other similar compensation mentioned in the first paragraph of Article 117 
bis CGI are liable to income tax in the category of investment income. 
When the aforementioned compensation is paid to individuals who are not residents of France for tax 
purposes, a 30% withholding tax is applied at source. However, individuals who are residents for tax 

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purposes of an EU Member State, Iceland, Norway or Liechtenstein may ask for a refund of the 
additional 30% withholding tax applied at source on directors' fees and similar compensation, for 
compensation paid as from 1 January 2016, provided that they are liable to tax on investment income 
on the tax scale for the same year, under the conditions for non-residents (Article 83 of the 2015 
Supplementary Budget Act no. 2015-1786 of 29 December 2015). 
The withholding tax is levied by the entity legally responsible for paying it, namely the last payer in 
France. However, European financial intermediaries (also based in Iceland, Norway and Liechtenstein) 
may pay the withholding tax due on income distributed by listed French companies to their non-
resident shareholders to the French government provided that they have concluded an agreement with 
the French tax administration and have been authorised by the entity legally responsible for paying the 
tax to file returns and make payments. 
Income from fixed-income securities (dividends and similar income) 
The flat-rate withholding tax applies, at an increased rate of 75%, to revenue from fixed-income 
securities paid by a debtor domiciled or based in France outside France in a non-cooperative country 
or territory, regardless of the tax domicile of the beneficiaries. 
CAPITAL GAINS ON PROPERTY 
Under most international tax treaties concluded by France, capital gains on the sale of property are 
taxable in the country where the property is situated. Capital gains on the sale of a property situated in 
France by a taxpayer domiciled outside France are taxable in France. 
Capital gains on property realised by non-residents are taxed in principle at a proportional 33
⅓
% rate. 
However, they are taxed at 19% when they are realised by non-resident individuals. 
Moreover, non-residents may be entitled to certain exemptions from capital gains tax on property and, 
in particular, to a special exemption for sales of housing units located in France. 
The exemption is limited to one residence per taxpayer and to €150,000 of net taxable capital gains, 
under the dual condition that:
- 
the seller has been resident of France for tax purposes for a continuous period of at least 
two years at any time prior to the sale; 
- 
the sale is concluded by 31 December of the fifth year following the year when the seller 
transfers his tax domicile outside France at the latest or, without conditions as to time limits, 
when the seller has had free enjoyment of the property at least since 1 January of the year 
preceding the year of the sale. 
PROFITS FROM PROPERTY 
Certain profits made by individuals domiciled outside France from property are subject to a withholding 
tax in discharge of income tax of 33
⅓
% which is increased to 75% when the profits are made by 
taxpayers domiciled in a non-cooperative country or territory. 
They are: 
• 
profits made by property dealers; 
• 
profits made by individuals on the sale of properties they have built or had built and of related 
property rights; 
• 
profits made by individuals who sell land divided into plots intended for development. 
CAPITAL GAINS ON THE DISPOSAL OF SHARES DERIVING FROM SUBSTANTIAL INTERESTS 
Unless otherwise provided for by an international tax treaty, gains resulting from the disposal by 
individuals or legal entities that do not have their tax domicile or registered office in France of shares in 

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33 
French companies are taxed at a flat rate of 45%
40
, where the seller, his or her spouse and their 
descendants and ascendants hold, or have held at some point during the previous five years, directly or 
indirectly, shares representing more than 25% of the corporate profits of the company whose shares 
have been sold. This levy discharges the income tax owed within the limit of the amounts having been 
subject to this tax. 
However, individuals who are non-residents of France may apply for repayment of the portion of the 
45% levy that exceeds the proportion of income tax that would have resulted from this gain being 
subject to the progressive income tax scale, calculated for non-residents.
Capital gains on the sale of shares in French companies are taxed at a flat rate of 75%, regardless of 
the proportion of rights to the profits of the relevant company, when they are realised by individuals or 
organisations domiciled, based or incorporated outside France in a non-cooperative country or territory. 
CAPITAL GAINS DISTRIBUTED BY VENTURE CAPITAL COMPANIES 
Amounts distributed by venture capital companies (VCCs) to non-resident individuals taken from the 
net capital gains on the disposal of shares by the company are subject to a 30%
41
withholding tax 
(Article 163 quinquies C CGI). 
However, individuals who are non-residents may apply for repayment of the portion of the 30% levy 
that exceeds the proportion of income tax that would have resulted from this distribution being subject 
to the progressive income tax scale calculated for non-residents. 
Such distributions are subject to a 75% withholding tax when they are paid in a non-cooperative 
country or territory. 
GAINS FROM EMPLOYEE SHAREHOLDING AND SIMILAR SCHEMES
Pursuant to the provisions of Article 182 A ter CGI, gains from French sources deriving from employee 
shareholding schemes and other employee benefits providing salaried employees and senior managers 
with shares under preferential conditions are subject to a specific withholding tax when the sale of the 
corresponding shares is carried out by a person who is not domiciled in France. 
This withholding tax applies to employee gains and benefits from the granting of stock options, bonus 
shares, founding share subscription warrants (bons de souscription de parts de créateur d’entreprise, 
BSPCE) and, more broadly, from any granting of securities to salaried employees and senior managers 
under preferential conditions as consideration for their work in France when said persons are not 
domiciled in France for tax purposes. 
The withholding tax is calculated by applying the base and rate rules provided for by the specific tax 
arrangements for these benefits when such apply or on the basis of the withholding tax rules laid down 
for salaries.