Tax impact of foreign bank accounts for French residents?

Posted On:03/01/2025 Updated On:10/10/2025
Tax articles
3 min read

Are you a French tax resident with foreign bank accounts? Do you know what to declare and how to comply with tax regulations? In this article, we’ll guide you through the process of declaring foreign bank accounts, the tax implications, and the consequences of non-compliance.

What’s the tax impact of having foreign bank accounts as a French resident?
Understanding foreign bank accounts as a French resident

What are the tax implications of foreign bank accounts?

It’s perfectly legal to open a foreign bank account, but as a French tax resident, you’re required to declare it to the French tax authorities. You must declare your foreign bank accounts annually with your income tax return using specific forms, such as the Form 3916 (in French). This includes:
  • Bank accounts
  • Savings accounts
  • Life insurance policies
  • Trading accounts
  • Crypto assets accounts

If you’re setting up a company or expanding your business internationally, it’s crucial to understand the tax implications of foreign bank accounts. Our team can assist with company setting-up and provide guidance on tax obligations. We can also help with tax assistance for individuals and corporate entities.

Tax compliance is not just about avoiding penalties, it’s about being transparent and honest with tax authorities. – OECD, Tax Transparency and Exchange of Information, 2022

How does the automatic exchange of banking data work?

Many countries have signed international agreements to automatically exchange banking information with France, as part of the Common Reporting Standard (CRS) developed by the OECD. This means that foreign banks will provide information on account holders who are French tax residents, including:
  • Account balances
  • Income generated
  • Account holder names
  • Account opening dates

If you’re facing debt recovery issues or disputes related to foreign bank accounts, our team can provide assistance with debt recovery.

The automatic exchange of information is a game-changer in the fight against tax evasion. – Pascal Saint-Amans, OECD Director of Taxation, OECD Observer, 2018

What are the consequences of non-compliance?

Failure to declare foreign bank accounts can result in fines of up to €1,500 per account per year, plus additional taxes and penalties. In severe cases, tax fraud can lead to criminal prosecution. Our team can assist with business and commercial issues related to foreign bank accounts and tax compliance.

Frequently Asked Questions

  1. What forms do I need to complete to declare my foreign bank accounts? You need to complete the Form 3916 and other specific forms depending on the type of account and income generated.
  2. What are the consequences of refusing to declare a foreign bank account? You can face fines, penalties, and even criminal prosecution.
  3. How do I rectify my tax declarations for foreign accounts? You need to prepare a dossier, including an explanatory letter, supporting documents, and amended tax declarations.
  4. What are the tax implications of selling foreign real estate? You need to declare the sale to the French tax authorities and pay taxes on any capital gains.

Take control of your tax obligations

Declaring foreign bank accounts and complying with French tax regulations is crucial to avoid penalties and fines. It’s essential to understand your tax obligations and seek professional advice to ensure you’re meeting your requirements. By being transparent and honest with tax authorities, you can avoid unnecessary complications and ensure your financial security. Don’t hesitate to contact us for personalized assistance and guidance on navigating the complexities of international taxation.
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Secure your financial future with expert guidance

Don’t let foreign bank account complexities put your financial security at risk. Get professional assistance from My French Lawyer‘s experienced of registered lawyers. My French Lawyer registered lawyers are dedicated to helping individuals and businesses navigate the intricacies of foreign bank account declarations and obligations. With My French Lawyer, you can trust that you’ll receive:
  • Personalized advice on foreign bank account compliance
  • Expert guidance on tax implications and regulations
  • Effective solutions to rectify past non-compliance issues
  • Representation in front of tax authorities

My French Lawyer lawyers are committed to securing your best interests and providing you with peace of mind. Contact us today to learn how we can help you achieve financial security and compliance.

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