{"id":990,"date":"2026-05-10T07:27:31","date_gmt":"2026-05-10T07:27:31","guid":{"rendered":"https:\/\/flytorelocation.com\/fr\/france-exit-tax-167-bis-2026\/"},"modified":"2026-05-11T20:15:32","modified_gmt":"2026-05-11T20:15:32","slug":"france-exit-tax-167-bis-2026","status":"publish","type":"page","link":"https:\/\/flytorelocation.com\/fr\/france-exit-tax-167-bis-2026\/","title":{"rendered":"France Exit Tax 2026: Article 167 bis CGI Explained"},"content":{"rendered":"
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France Exit Tax 2026: Article 167 bis CGI, Latent Capital Gains and Payment Deferral<\/h1>\n
Flyto Relocation Team<\/strong>\u00b7<\/span>Updated May 10, 2026<\/span>\u00b7<\/span>\u2713 Expert team since 2018<\/span>\u00b7<\/span>~2 min read<\/span><\/div>\n
Also available in Fran\u00e7ais<\/a><\/div>\n
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Quick answer:<\/strong> Tax exit from France can trigger the exit tax under Article 167 bis CGI on latent capital gains attached to shareholdings exceeding \u20ac800,000 or 50% of the share capital. Payment deferral is automatic for EU\/EEA destinations and available on request elsewhere. A final tax return is filed with the SIPNR (Service des imp\u00f4ts des particuliers non-r\u00e9sidents) for the move year.<\/p>\n<\/div>\n

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Key takeaways<\/h3>\n
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  • Article 167 bis CGI<\/strong> on latent gains.<\/li>\n
  • \u20ac800,000 or 50%<\/strong> threshold.<\/li>\n
  • Automatic deferral<\/strong> in EU\/EEA.<\/li>\n
  • SIPNR<\/strong> handles non-resident filings.<\/li>\n
  • Tax treaties<\/strong> with 120+ countries.<\/li>\n<\/ul>\n<\/div>\n
    \"France<\/figure>\n
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    Exit tax in plain English: what Article 167 bis CGI actually does<\/h2>\n

    The French exit tax under Article 167 bis<\/em> of the Code G\u00e9n\u00e9ral des Imp\u00f4ts<\/em> (CGI) was introduced in 2011, reformed in 2019, and adjusted again for 2026. It treats certain unrealised capital gains as if they had been realised on the day before you stop being a French tax resident \u2014 and taxes them at 30% (the Pr\u00e9l\u00e8vement Forfaitaire Unique<\/em>, or ”flat tax”) plus 17.2% pr\u00e9l\u00e8vements sociaux<\/em> if you were socially affiliated in France. In effect: 12.8% income tax + 17.2% social charges = 30% combined on latent gains.<\/p>\n

    The rule is anti-abuse. France wants to prevent residents from selling shares the day after moving to a low-tax jurisdiction. Triggers apply only if you held qualifying shares for at least 6 years out of the 10 preceding your departure AND you held at least 50% of a company OR a portfolio worth more than \u20ac800,000 at departure date.<\/p>\n

    Who is affected \u2014 and who is exempt<\/h2>\n

    Affected:<\/strong> shareholders, founders, fund managers, and high-net-worth individuals whose shareholdings cross the \u20ac800,000 threshold or the 50% ownership threshold. The latent gain is computed as the difference between fair market value at departure date and acquisition cost. Stock options, RSUs, and BSPCE are included if vested at departure.<\/p>\n

    Exempt:<\/strong> shares in PEA (Plan d’\u00c9pargne en Actions), PEE (Plan d’\u00c9pargne Entreprise), PER (Plan d’\u00c9pargne Retraite), real estate, life insurance contracts (these have separate rules under Article 200 A CGI<\/em>), and most cryptocurrencies (subject to Article 150 VH bis CGI for declared holdings only).<\/p>\n

    Sursis de paiement (deferral):<\/strong> if you move to an EU\/EEA country with a tax treaty with France, payment is automatically deferred without guarantees. If you move outside the EU\/EEA (USA, UK, Switzerland, Singapore, UAE, etc.), you must provide a financial guarantee \u2014 typically a bank guarantee from a French bank \u2014 equal to 12.8% of the latent gain. This is one of the main administrative costs of the exit tax.<\/p>\n

    The 2026 thresholds and computation<\/h2>\n\n\n\n\n\n\n\n\n\n\n\n
    Element<\/th>\n2026 value<\/th>\nSource<\/th>\n<\/tr>\n<\/thead>\n
    Portfolio threshold<\/td>\n\u20ac800,000 fair market value<\/td>\nArticle 167 bis CGI<\/td>\n<\/tr>\n
    Ownership threshold<\/td>\n\u226550% of company shares<\/td>\nArticle 167 bis CGI<\/td>\n<\/tr>\n
    Income tax rate<\/td>\n12.8% (PFU)<\/td>\nArticle 200 A CGI<\/td>\n<\/tr>\n
    Social charges<\/td>\n17.2% if socially affiliated<\/td>\nArticle L 136-6 CSS<\/td>\n<\/tr>\n
    Combined rate<\/td>\n30%<\/td>\nLoi de finances 2026<\/td>\n<\/tr>\n
    Holding period for trigger<\/td>\n6 of last 10 years<\/td>\nArticle 167 bis II CGI<\/td>\n<\/tr>\n
    Disgorgement period<\/td>\n2 years (EU) \/ 5 years (non-EU)<\/td>\nArticle 167 bis VII bis CGI<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    The disgorgement clause: how to legally avoid the exit tax<\/h2>\n

    The exit tax is fully cancelled<\/strong> if you keep the shares for: 2 years after departure if you moved to an EU\/EEA country with a French tax treaty, or 5 years if you moved elsewhere. This is the d\u00e9gr\u00e8vement<\/em> mechanism. After the holding period expires, the latent gain is wiped from your fiscal account and the deferred tax discharged \u2014 even if you sell the shares later, only the post-departure capital gain is taxable in your new country of residence (subject to local rules).<\/p>\n

    If you sell the shares before the disgorgement period expires, the deferred exit tax becomes payable immediately, plus any post-departure gain is also taxed. If you return to France within the holding period and re-establish tax residency, the exit tax is automatically cancelled regardless of timing.<\/p>\n

    Filing obligations: forms and deadlines<\/h2>\n

    You must file Formulaire 2074 ETD<\/em> together with your final French income tax return for the year of departure (typically due 31 May of year N+1 for paper filing or 8 June for online via imp\u00f4ts.gouv.fr<\/em>). The form lists each shareholding, acquisition cost, fair market value at departure, and computed latent gain. You also indicate whether you request the sursis de paiement and provide guarantee details if applicable.<\/p>\n

    Each year thereafter, until the disgorgement period expires, you must file Formulaire 2074 ETS<\/em> declaring any sales, transfers, or events affecting the deferred tax. Failure to file the annual ETS triggers immediate payment of the deferred exit tax plus a 5% late penalty under Article 1727 CGI<\/em> and 0.20% monthly interest.<\/p>\n

    Practical strategies before departure<\/h2>\n

    1. Crystallise the basis.<\/strong> If your portfolio is below \u20ac800,000, consider postponing departure or restructuring to stay below the threshold. If above, consider partial sale of shares before departure to use the existing 30% rate (which is still lower than many destination countries’ capital gains rates).<\/p>\n

    2. Use the PEA shelter.<\/strong> Shares held in a PEA (5-year hold minimum) are exempt from exit tax and from French income tax. The PEA continues to grow tax-free for the French portion even after you leave. Maximise contributions before departure (\u20ac150,000 ceiling).<\/p>\n

    3. Time the move strategically.<\/strong> Tax residency in France is determined by the calendar year. If you can complete the move in early January, you have a full year of foreign residency before the next French tax filing \u2014 useful for cash flow planning around the exit tax computation.<\/p>\n

    4. Get the guarantee right.<\/strong> For non-EU destinations, the bank guarantee can be expensive (typically 0.5-1% of the secured amount per year). Compare quotes from BNP Paribas, Soci\u00e9t\u00e9 G\u00e9n\u00e9rale, Cr\u00e9dit Agricole, and LCL \u2014 terms vary widely. Some private banks waive the guarantee for clients with custody of more than \u20ac1M in assets.<\/p>\n

    5. Engage a fiscaliste.<\/strong> Exit tax computation is complex and the 2074 ETD has high error rates. Budget \u20ac2,000-5,000 for a chartered tax advisor in the year of departure \u2014 much cheaper than penalties or wrong guarantees.<\/p>\n<\/div>\n

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    FAQ<\/h3>\n
    \nDoes every move trigger exit tax?<\/summary>\n

    No \u2014 only when thresholds (\u20ac800,000 or 50%) on qualifying shareholdings are met.<\/p>\n<\/details>\n

    \nAutomatic deferral?<\/summary>\n

    Yes within the EU\/EEA, on request with guarantees outside.<\/p>\n<\/details>\n

    \nWhen does the tax become due?<\/summary>\n

    On disposal of the shares within 2 or 5 years depending on regime.<\/p>\n<\/details>\n

    \nFinal return?<\/summary>\n

    Form 2042 and annexes for the move year, filed with the SIPNR.<\/p>\n<\/details>\n

    \nTax residence?<\/summary>\n

    Switches on the effective departure date with notification to the SIPNR.<\/p>\n<\/details>\n

    \nDoes exit tax apply if my portfolio is below \u20ac800,000?<\/summary>\n

    No \u2014 unless you also own \u226550% of a company. The dual threshold means small shareholders below both criteria are not subject to Article 167 bis CGI. However, you must still declare the absence of trigger on your final return.<\/p>\n<\/details>\n

    \nWhat happens if I move to an EU country and then to a non-EU country within the 2-year period?<\/summary>\n

    The deferral becomes a non-EU deferral, and you must provide a financial guarantee retroactively. Notify the SIPNR within 60 days of the second move. The disgorgement clock continues but the holding period extends from 2 to 5 years.<\/p>\n<\/details>\n

    \nAre stock options and RSUs from my French employer subject to exit tax?<\/summary>\n

    Vested options and RSUs at the date of departure are included if the total portfolio (including these) crosses the \u20ac800,000 threshold. Unvested options are excluded. BSPCE follow the same rule. The valuation uses Black-Scholes or the price approved at the last AGM.<\/p>\n<\/details>\n

    \nCan I avoid the exit tax by moving back to France temporarily?<\/summary>\n

    Yes \u2014 re-establishing French tax residency before the disgorgement period expires (2 or 5 years depending on destination) cancels the deferred exit tax entirely. However, the SIPNR will scrutinise this for abuse de droit (Article L 64 LPF). Genuine return is required, not a tax-driven shuttle.<\/p>\n<\/details>\n<\/div>\n

    Notify the SIPNR before departure to lock in deferral and avoid late penalties.<\/p>\n

    Flyto Relocation handles your international move from France. Get a free quote<\/a>.<\/p>\n

    See also: All France moving guides<\/a>.<\/p>\n

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    Planning your international move?<\/h3>\n

    Get a personalised relocation quote in 2 minutes<\/p>\n

    Get free quote \u2192<\/a><\/p>\n<\/div>\n<\/div>\n