France is one of the countries which have signed most of the double tax treaties around the world. The treaty countries and jurisdictions are: Albania, Algeria, Argentina, Armenia, Austria, Australia, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Benin, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Bulgaria, Burkina Faso, Cameroon, Canada, Central African Republic, Chile, China, Congo, Croatia, Comoro Islands, Cyprus, Czech Republic, Denmark, Ecuador, Egypt, Estonia, Ethiopia, Finland, French Polynesia, Gabon, Georgia, Germany, Ghana, Greece, Guinea, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Ivory Coast, Jamaica, Japan, Jordan, Kazakhstan, Korea Republic, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Madagascar, Malawi, Mayetta, Malaysia, Mali, Malta, Mauritania, Mauritius, Mexico, Moldova, Monaco, Mongolia, Montenegro, Morocco, Namibia, Netherlands, New Caledonia, New Zealand,, Niger, Nigeria, Norway, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russia, St. Pierre, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tajikistan, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Venezuela, Vietnam, Zambia, Zimbabwe, Saudi Arabia
Besides the already signed treaties, France has many other drafts prepared for signature. For example, a double tax treaty is in discussion with Andorra from July 2012.
The above agreements are often revised in order to bring new and actual changes that would match the economic environment nowadays. Revised DTA were signed with Saudi Arabia, Austria and Mauritius in 2012.
As a general rule, the double tax treaties are dealing with the taxation of capital and income in France for a non resident investor. The double tax treaties deal with earned income, passive income and gains from real property.
The incomes of a company where the majority of shareholders are from a treaty country are exempt from paying taxes. These taxes are usually paid in the investor’s country of residence.
The passive income, such as dividends, interest and royalties are usually subject to a withhold tax, usually smaller than the tax applicable to non treaty countries, with a rate ranging 0%-15%.
The taxation of real property is made in France, but certain special incentives may be stipulated in every signed treaty.
Along with the treaties, protocols of exchange of information regarding the taxpayers are signed in order to avoid the tax fraud in France and in the country of residence.
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