Australians relocating to France face a complex set of tax obligations that span both countries. Whether you’re moving for retirement, remote work, or a lifestyle change, understanding your tax residency, the Australia–France Double Tax Agreement (DTA), and your obligations in both jurisdictions is essential to staying compliant and avoiding double taxation.
This guide outlines the key tax considerations for Australians living in France, including income reporting, superannuation, residency status, and how to make the most of tax treaty protections.
Table of Contents
Tax residency status
Your tax obligations in both Australia and France depend heavily on your tax residency status.
- French Tax Resident: You’re generally considered a resident if you spend more than 183 days in France in a calendar year, your main home or economic ties are in France, or your family resides there.
- Australian Tax Non-Resident: Once you leave Australia and establish residence elsewhere (e.g., France), you may become a non-resident for Australian tax purposes, which means you’re only taxed on Australian-sourced income.
Important: Tax residency is determined independently by each country. You can be a tax resident in one, both, or neither, and your status affects how your income is taxed.
Income tax in France vs Australia
France
- Taxed on worldwide income if you’re a resident
- Progressive rates from 0% to 45%
- Additional solidarity and high-income surtaxes may apply
- Household-based taxation (with income split among “parts”)
Australia
- Non-residents are taxed at a flat rate: 30% on the first AUD 135,000 (no tax-free threshold)
- Still taxed on Australian-sourced income (e.g. rent, capital gains)
For example, an Australian retiree living in France with rental income from Sydney would pay tax on that income in both countries unless relief is applied under the tax treaty.
The Australia-France double tax agreement (DTA)
The DTA exists to ensure income is not taxed twice. It allocates taxing rights between the two countries based on income type and your residency.
Key protections under the DTA
- Prevents double taxation through exemptions or foreign tax credits
- Clarifies where each income type is taxed (e.g. pensions, dividends)
- Helps determine primary taxing rights for employment, business, and property income
If you pay tax on your Australian pension in Australia, France will usually offer a tax credit to prevent you from paying again. If France has the taxing rights, you may be exempt in Australia, depending on your tax status.
Declaring worldwide income in France
If you are a tax resident in France, you must declare all global income, including:
- Salaries and wages
- Rental income (in France or Australia)
- Dividends, interest, and capital gains
- Australian superannuation pensions or withdrawals
Even if tax is already paid in Australia, it must be declared in France, and you should claim a foreign tax credit where applicable.
French tax returns typically use forms like 2042, 2042 C, and 2047 for foreign income declarations.
Superannuation and retirement home
Superannuation treatment depends on your residency and the structure of your super income:
- If you’re 60+ and retired, Australian super pensions are tax-free in Australia.
- In France, however, your superannuation may be treated as taxable pension income and included in your household’s global income, even if tax-free in Australia.
Depending on the DTA, France may tax the income, and a credit may be granted for any tax already paid in Australia. Social charges (prélèvements sociaux) may also apply, unless specifically exempted by the treaty.
If you take a lump-sum withdrawal, the treatment may differ, and it’s advisable to seek expert advice.
➡️ Thinking about retiring to France from Australia, read our article on Retiring in France from Australia: is it worth it?
Social charges and local taxes
French tax residents may be subject to additional levies:
- Social charges of up to 17.2% can apply to foreign investment income and pensions.
- These charges may be partially or fully exempted for Australians under the DTA, depending on income type.
- France has no local income tax, but retirees should be aware of:
- Taxe foncière (property ownership tax)
- Taxe d’habitation (For second homes)
Inheritance and estate planning
Unlike Australia, France has inheritance taxes that apply to worldwide assets for French residents. These are calculated based on:
- The relationship between deceased and beneficiary
- The value of the inheritance
- Fixed tax brackets set by French law
Australia does not have inheritance tax, so planning ahead is crucial to avoid unexpected liabilities. The DTA may provide relief in some cases, but cross-border estate planning is essential for Australians living in France.
Practical steps to stay compliant
Here’s how to manage your tax situation as an Australian in France:
Determine Your Tax Residency in Both Countries
- Use local rules and residency tests
- Understand the DTA’s tie-breaker rules for dual residents
Declare All Required Income
- Include foreign earnings on your French tax return
- Declare French income to the ATO if you remain an Australian tax resident
Use the DTA to Avoid Double Taxation
- Claim foreign tax credits
- Check which country has taxing rights on each income type
- Understand treaty benefits for pensions, property, and investments
Keep Proof of Tax Paid and Residency
- Collect tax certificates, payment confirmations, and residency declarations
Seek Specialist Advice
Work with a bilingual tax adviser who understands Australia–France tax law, especially for:
- Superannuation
- Investment income
- Estate planning
- Business or self-employment
FAQ: Tax for Australians living in France
Do I still have to lodge an Australian tax return if I live in France?
Only if you are still considered an Australian tax resident, or you earn Australian-sourced income (like rental income, dividends).
Can I be taxed on my Australian super in France?
Yes. While tax-free in Australia, France may tax superannuation pensions as part of your global income, depending on the treaty and income type.
What income is covered under the Australia–France tax treaty?
The treaty covers:
- Employment income
- Pensions and superannuation
- Dividends, interest, royalties
- Capital gains
- Business profits and self-employment
- Rental income and real estate
- Other unclassified income
What documents do I need to claim tax relief in France?
You’ll typically need:
- Proof of tax paid in Australia
- A certificate of tax residency
- Income statements and supporting documentation
Do I need to pay French tax on Australian property income?
Yes, you must declare Australian rental income in France. You can claim a tax credit for any Australian tax already paid to avoid double taxation.
Final notes: Get it right from the start
Navigating tax as an Australian expat in France can be complicated, but with the right knowledge and support, it’s manageable. Determining your residency, declaring all global income, and using the DTA to avoid double taxation are all essential steps.
To ensure full compliance and optimise your financial situation, it’s highly recommended to work with a tax adviser experienced in cross-border tax issues between Australia and France.
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