Frequently asked questions on scope of application, computation, deferral (Section IV and Section V), guarantees, the fiscal representative, relief, crypto-assets, BSPCEs, and specific issues for the France–UAE corridor.
Any individual transferring their tax residence outside of France who has been a French tax resident for at least six of the ten years preceding the transfer, and who holds, directly or indirectly with the members of their tax household, either an ownership interest of at least 50% in the corporate profits of a company or securities falling within the scope of article 150-0 A of the French General Tax Code (CGI) with an aggregate value exceeding 800,000 euros (Article 167 bis, I of the CGI). Gains already in tax deferral are taxable whatever the duration of residence.
Yes. The exit tax applies to any transfer to any foreign State, including the United Arab Emirates. The applicable deferral regime, however, is not the automatic deferral under Section IV (reserved for the EU and States that have concluded with France the required fraud-assistance and recovery-assistance conventions) but the elective deferral under Section V, the France-UAE treaty of 19 July 1989 containing no recovery-assistance clause.
No. The exit tax applies to unrealized capital gains on corporate rights, securities, or equivalent instruments. Real estate held directly by the taxpayer falls outside its scope.
No. Cash holdings do not generate any unrealized capital gain.
Under the single flat-rate withholding (PFU, the default regime in 2026), the aggregate rate is 31.4% (12.8% income tax + 18.6% social contributions). The election for the progressive income-tax brackets is available but triggers the application of those brackets to all the taxpayer's investment income for the year.
Through a combination of methods: discounted cash flows, multiples drawn from comparable transactions, intrinsic value, and asset-based value. An independent valuation report prepared before departure is strongly recommended.
Only for securities acquired before January 1, 2018, and only if the taxpayer elects the progressive bracket regime. Three tiers: 50%, 65%, and 85% (the enhanced SME tier).
No. The UAE does not satisfy the two-pronged condition required by Section IV. Only the elective deferral under Section V is available.
Ninety days before the transfer (Decree 2019-868). This deadline is not negotiable.
Bank guarantee, pledge of securities, mortgage, cash deposit, or personal guarantee of a solvent third party.
Yes, under Section V (elective deferral). No, under Section IV (automatic deferral).
Form 2074-ETS1 (transfers from 3 March 2011 to 31 December 2012), ETS2 (transfers in 2013), ETS3 (transfers since 1 January 2014), and ETSL (simplified return, full deferral with no event during the year). Since 2019, annual filing is waived where the deferral covers only unrealised gains: the return is then due only upon an event.
Proportional forfeiture of the deferral. The tax attributable to the portion sold becomes immediately due and payable. Notification is made via Form 2074-ETS.
For a donor domiciled in the UAE (a third State with no recovery-assistance convention), in principle yes: the deferral lapses unless the donor demonstrates that the gift was not made for principally tax reasons (Article 167 bis, VII of the CGI; French Supreme Administrative Court (Conseil d'État), 12 Feb. 2020, no. 421441). For a donor established in the EU, relief applies without that burden of proof. A gift close in time to the departure is heavily scrutinized.
After 2 years (portfolio of €2.57M or less) or 5 years (above €2.57M) for departures since 2019 (Article 167 bis, VII of the CGI), provided that the securities have been retained and the reporting obligations have been complied with.
It is granted automatically by law, but in practice requires the filing of follow-up Form 2074-ETS3 (box 430) with evidence that the securities have been retained. A return to France before the expiration of the holding period also triggers relief as of right.
Crypto-assets held directly by an individual taxpayer fall, in principle, outside the scope of article 167 bis CGI. By contrast, securities representing an interest in a digital-asset management company may fall within scope.
No for unrealised gains and earn-out claims: the condition of six years out of the prior ten is not met. Beware, however: gains already in tax deferral (notably under Article 150-0 B ter) remain taxable whatever the duration of residence (Article 167 bis, II of the CGI).
If you have not been a French tax resident for at least 6 of the previous 10 years, you fall outside the scope of the exit tax.
Yes, if they have been exercised and you hold the underlying shares on the date of transfer. The acquisition price used for the unrealised-gain computation is the value of the share on the date the warrant was exercised; the exercise gain (difference between that value and the subscription price set at grant) remains taxed separately under the regime of Article 163 bis G of the CGI (BOI-RPPM-PVBMI-50-10-10-20).
Yes. The exit tax turns on tax residence, not on nationality. Any French tax resident leaving France and meeting the conditions falls within scope.
A one-hour videoconference to review your situation, calibrate your exit tax exposure, and secure your transfer to Dubai. Fee: 2,000 AED (approx. €470).
Book an auditReferences current as at the date of last revision, cited for information only. Any application to a particular situation requires an individualised analysis.
Legislation
Administrative doctrine (BOFiP)
Case law