The partial exemption of certain foreign-source property income received by impatriate executives or managers is no longer subject to the actual receipt of an impatriation bonus.

As a reminder, employees moving to France since 1 January 2008 may benefit, under certain conditions and for a limited period of time, from a special income tax regime provided for in Section 155 B-I of the French Tax Code (“FTC”).

The concerned employees are those called upon from abroad to take up employment in a company established in France. They are employees coming to work in France as part of an intra-group mobility scheme, but also directly recruited abroad by a company established in France.

This regime allows foreign executives and managers hired in a French company to benefit from an exemption for their impatriation bonus. Passive incomes from foreign sources such as incomes from movable capital and capital gains on movable assets are also exempted up to 50% of their amount.

The French tax authorities considered in their guidelines published in the Bofip on 12 September 2010 under the reference BOI-RSA-GEO-40-10-30-10 that impatriates who do not receive an exempt impatriation bonus on the basis of Section 155 B of the French Tax Code cannot obtain the 50% exemption on their “passive” incomes.

The French Administrative Supreme Court (“CE”) considered in its decision of October 21th, 2020, No. 442799 that this was an addition to the law and cancelled this guideline.

The 50% exemption for passive incomes and capital gains applies even if the impatriate did not receive an exempt impatriation bonus in the same year.

This decision allows impatriates to claim for the benefit of this exemption on their income tax returns for years 2019 and 2018.


La Tour International remains at your disposal to assist you in this process. Any claim will be subject to a prior investigation of your file.

Benoît Philippart, Avocat Associé  – +33 1 42 25 78 92 / +33 6 30 74 27 35

Nicolas Cys, Avocat Associé  – +33 1 42 25 78 84 / +33 6 87 44 81 68