The French tax regime applicable to impatriates’ employees constitutes a key instrument for enhancing France’s attractiveness to foreign talent.
Since June 2017, this regime has undergone several significant legislative changes, while the corresponding administrative guidelines had not been updated accordingly. An initial update, published on April 10, 2025, addressed all conditions for the application of the regime. Following a public consultation, this update was complemented by new administrative guidance providing practical clarifications, thereby facilitating the interpretation and implementation of the regime by both taxpayers and businesses.
Scope of application of the special tax regime for impatriates’ employees[1]
In its April 10, 2025 version, the administrative guidelines expressly recognize that expatriate employees may benefit from the tax regime provided under Article 155 B CGI when returning to France to continue their professional activity, either within the company that employed them prior to their departure, or within another company of the same group. To qualify, all conditions of the regime must be met, in particular the requirement that the individual was not tax-resident in France prior to the expatriation. The fact that the employment contract was terminated, suspended, or modified during or after the expatriation does not preclude eligibility for the regime.[2]
Furthermore, the updated guidance clarifies that the impatriates’ regime remains applicable in the event of a change in role, whether within the same company or in another entity of the group, while noting that such a change does not extend the duration of the regime. Conversely, the benefit of the regime ends if the individual changes roles within a different company or group.[3]
The August 11, 2025 update introduces an important new clarification: employees and executives who applied from abroad for a position within a company established in France are considered to have been “recruited directly from abroad.”.[4]
Previously, the regime only applied to those who were “called upon” or “recruited” from abroad, which de facto excluded individuals who came to France on their own initiative. This clarification, consistent with case law[5], puts an end to restrictive interpretations previously adopted by some tax authorities and clearly defines the scope of the regime.
Exemption of certain elements of remuneration received in respect of professional activity[6]
As a reminder, Article 155 B of the CGI allows employees and executives recruited from abroad to work temporarily in France to benefit from a tax exemption on the portion of their remuneration linked to this assignment, or, alternatively, on 30% of their total remuneration.
In general, it should be noted that on several points, the administrative doctrine reiterates language from before the public consultation. For instance, with regard to the bonus stipulated in the employment contract, the administration has revised its terminology: the bonus now only needs to be “ascertainable[7]“, rather than “determined” as previously required by prior guidance[8]. This change broadens the scope for interpretation, accepting that a bonus may be justified even if not quantified upfront.
Lastly, r references to the former duration of the regime (five years instead of eight for positions taken before July 6, 2016) have now been removed, as they are no longer applicable. The impatriates’ regime now applies until December 31 of the eighth calendar year following the year in which the individual first took up their position in France.[9]
[1] BOI-RSA-GEO-40-10-10
[2] BOI-RSA-GEO-40-10-10, §40
[3]BOI-RSA-GEO-40-10-10, §250
[4] BOI-RSA-GEO-40-10-10, 11 août 2025, § 80
[5] Paris Administrative Court of Appeal, 9th Chamber, 10 June 2022, No. 20PA02279
[6] BOI-RSA-GEO-40-10-20
[7] BOI-RSA-GEO-40-10-20, 11 août 2025, § 70
[8] BOI-RSA-GEO-40-10-20, 10 avr. 2025, § 70
[9] BOI-RSA-GEO-40-10-20, 10 avr. 2025, § 170