• MMC

The impatriate tax regime in France is designed to facilitate the relocation of highly skilled international professionals and support their integration into French companies. It allows for tax exemptions on certain types of income, reducing the fiscal impact of relocating to France.

Recent Updates

Since the end of 2025, the regime has been expanded. Now, not only employees and executives assigned by their foreign employer to work in France are eligible, but also those directly recruited from abroad, including those who applied for a position on their own initiative.

This change strengthens France’s competitiveness in attracting international talent in a context where global mobility is a key strategic lever for companies.

Who Is Eligible?

To qualify for the regime, several conditions must be met:

1. Assignment or Recruitment :
• Be assigned by a foreign company to join its French subsidiary, or
• Be recruited from abroad by a company based in France.
2. Prior Non-Residency: The individual must not have been a French tax resident during the five years preceding their arrival in France.
3. Former French Expats: French nationals who have been non-residents for at least five years may also benefit.
4. Primary Residence in France: The employee must carry out their main professional activity in France and establish tax residency there.

Tax Benefits

The impatriate regime offers significant fiscal advantages to make relocation more attractive:

• Duration: Up to eight years from the employee’s start date in the French company.
• Income Tax Exemptions:
• On the impatriation allowance, which is additional compensation for relocating to France, or
• On 30% of total net remuneration, depending on the employee’s choice.

These measures enable companies to offer competitive packages to international talent while minimizing the fiscal burden for employees.

Why This Regime Is Strategic for HR

For HR teams, the impatriate tax regime is a key tool in international mobility:

• It facilitates the recruitment of highly qualified professionals by reducing the fiscal cost of relocation.
• It encourages international employees to accept positions in France, even when other countries may offer competitive opportunities.
• It helps secure the employee’s fiscal and administrative integration, reducing the risk of errors or disputes with tax authorities.

In practice, implementing the regime requires close coordination between HR, mobility, and payroll teams to verify eligibility, calculate exemptions, and ensure compliance throughout the application period.

In short

The impatriate tax regime is a powerful tool for attracting and retaining international talent in France. With its recent updates, it has become more flexible and accessible, particularly for employees recruited directly from abroad. For HR teams, understanding and leveraging this regime allows them to enhance the attractiveness of positions and secure international mobility while optimizing employee compensation packages.