Article 4B of the French General Tax Code: The 4 Criteria for Tax Residence in France

What is Article 4B of the French General Tax Code (CGI)? What exactly does it say?

Article 4B of the CGI is the reference text of the French domestic and international law (via its interaction with treaties) which determines whether you are a tax resident in France. It is based on a a body of evidence divided into three pillars: personal criteria (family/stay), professional criteria (main activity) and economic (source of income/place of business). It applies to any person, regardless of nationality.

Its fundamental principle: meeting only one criterion is sufficient to qualify you as a French tax resident. The criteria are alternatives, These conditions are not cumulative. This is the most common misconception. Meeting just one of these conditions is enough to validate your application. tax liability as a resident, regardless of your French nationality or foreign.

Official text of Article 4B of the French General Tax Code (version in force since Law No. 2025-127 of February 14, 2025)

1. The following are considered to have their tax domicile in France within the meaning of Article 4 A:

a. Persons who have their home or main place of residence in France; ;

b. Those who carry out a professional activity in France, whether salaried or not, unless they can justify that this activity is carried out there on an ancillary basis; ;

c. Those whose center of economic interests is in France.

Persons who meet at least one of the criteria set out in points a to c of this paragraph 1 cannot, however, be considered as having their tax domicile in France when, by application of international conventions relating to double taxation, they are not regarded as residents of France.

2. Also considered to have their tax domicile in France are agents of the State, local authorities and of the hospital civil service who carry out their duties or are assigned missions in a foreign country and who are not subject in that country to personal tax on all of their income.

Source : Legifrance — Article 4B CGI

Key point: Since the 2025 Finance Act, Article 4B explicitly incorporates the primacy of international tax treaties. If a treaty grants you residency in another state, you cannot be considered a tax resident of France, even if you meet one of the domestic criteria.

The 4 criteria for tax residence in France according to Article 4B of the French General Tax Code (CGI)

For the tax authorities, determining residence is not based on a simple mathematical formula, but on a factual analysis of your lifestyle and a link evaluation forces with France.

1. The home or main place of residence

The home is the strongest personal criterion. It designates the place where the taxpayer — and his family — normally lives, the center of family life.

The factors taken into account by the administration: usual residence, schooling of children, place of residence of spouse or partner, actual use of the accommodation.

Concrete example: An expatriate executive in the UK whose spouse and children remain in France will be considered as having their home in France, even if they work and physically reside in London for the majority of the year.

The main place of residence It only applies in the absence of an identifiable home—a typical case of a single person without stable family ties. It is assessed based on the actual length of stay in France, compared to stays in other countries.

Common pitfall: Many people think that the household criterion only applies to themselves. However, if your family remains in France, this criterion is met even if you are physically absent for most of the year.

2. The main professional activity

This is the place where you carry out your activity, whether salaried or not. According to the professional criteria, If you have several activities, this is the one to which you devote the most time or which provides you with the bulk of your economy revenue who wins. The business representatives Those managing French structures from abroad are under particular scrutiny.

Individuals who carry out a professional activity in France are considered to be French tax residents., employed or not, unless they can justify that this activity is carried out on an ancillary basis.

What "primarily" means: If you carry out several activities or the same activity in several countries, it is the activity to which you devote the most time or which generates the bulk of your income that determines your residence.

Example — seconded employee: An employee sent by their French company to work in Singapore for 18 months can maintain their residence in France (family remaining there). The professional activity criterion no longer links them to France, but the residence criterion remains valid.

Example — remote management: A manager who runs a French company from abroad can be considered as carrying out his main activity in France, in particular since the extension of the criterion to managers of companies whose headquarters are in France and whose turnover exceeds 250 million euros (finance law 2020).

Common pitfall: To believe that a local employment contract abroad is sufficient to negate the professional criterion is a mistake. If you continue to manage French businesses, the administration may classify this activity as "primary".

3. The center of economic interests

The center of economic interests is defined as the place where the taxpayer has made his main investments, where his business headquarters are located, from where he manages his assets, or from where he derives the majority of his income.

Concrete examples:

• An entrepreneur living in Dubai but whose main income comes from a company based in France remains subject to this criterion.
• A person with significant real estate assets in France (rents, SCPI, main residence rented out) can be considered a French tax resident on that basis alone.
• Dividends, interest or pensions from predominantly French sources constitute strong indicators for the administration.

💡 Balmont Expert Point

In our experience, the criterion of the center of economic interests is the one most frequently challenged by the tax authorities during audits of expatriates. We regularly observe situations where taxpayers believed they had severed all ties with France, but retained rental income, shares in French companies, or active bank accounts. These factors, taken together, are enough to trigger a reclassification—sometimes several years after departure. A preliminary analysis of your economic circumstances is essential before any move abroad.

Common pitfall: Underestimating the importance of passive income (rent, dividends) remaining in France. The tax authorities don't just look at where you live, but also at the source of your wealth.

4. The specific case of state agents abroad

Paragraph 2 of Article 4B provides for a special case: the State employees, local government employees and hospital civil servants Those who perform their duties or are assigned missions in a foreign country are considered to be tax residents of France., except if they are subject in that country to personal income tax on all of their income.

In other words: A French civil servant posted abroad remains a French tax resident by default, unless their host country taxes them on all of their worldwide income — which is rare.

This criterion applies independently of the first three. It aims to prevent public officials on assignment abroad from evading French taxation.

Data Factsheet: Summary of criteria and hierarchy

Alexis Sagnier's opinion: «"Tax optimization is only effective if it is done calmly. Too many taxpayers think that a stamp in a passport is enough to obtain a certain status." non-resident tax residence. My role is to secure your assets by comparing your current situation with the case law of the Council of State before the administration does it.»

The myth of the 183 days

The 183 days are not included in article 4B of the CGI. This figure is not mentioned anywhere in the legal text that defines tax residence under French domestic law.

Where does this confusion come from?

The 183-day rule appears in some international tax treaties, This is particularly useful as a tie-breaker when two states claim the residence of the same taxpayer. It serves to determine in which country the person "habitually resides" — but only if the previous criteria (permanent home, center of vital interests) have not been sufficient to resolve the matter.

In French domestic law, the concept used is that of «"main place of residence"», This is assessed by comparing the length of stay in France to that in each other country. It is not a fixed threshold of 183 days.

What really matters according to article 4B:

• If you have a hearth In France (family, habitual residence), the criterion is met regardless of the number of days spent on the territory.
• The criterion of principal residence only applies in the absence of an identifiable outbreak. And even in this case, it is not a question of exceeding 183 days in France, but of spending more time in France than in any other country.
• You can be a French tax resident without having set foot in France all year, if your center of economic interests is located there.

Illustrative example: A taxpayer who spends 150 days in France, 100 days in Spain, and 115 days in the United States has their principal residence in France—even if they haven't reached 183 days. France remains the country where they spend the most time.

The 183-day rule is therefore a dangerous shortcut. It can be applied within the framework of a tax treaty, but it never replaces the analysis of the criteria in Article 4B.

Residency Conflicts and International Conventions

When two countries both consider themselves residents

It frequently happens that an expatriate is considered a tax resident in two countries simultaneously, according to their respective domestic laws. This situation of double residence can lead to double taxation.

Typical example: a Frenchman who is settling down in Portugal but retains family and real estate assets in France, which may qualify him as a tax resident by both countries according to their respective domestic laws.

Tax treaties and tie-breaker rules

To resolve these conflicts, bilateral tax treaties — most of which are based on the OECD model convention — provide for hierarchical tie-breaking rules, applied in the following order:

1. Permanent residential home

The country where the taxpayer has a permanent home (house, apartment for their exclusive use) is considered their state of residence. This is the most decisive criterion.

2. Center of vital interests

If the taxpayer has a permanent home in both states (or in neither), consideration is given to which country their personal and economic ties are closest.

3. Usual stay

If the center of vital interests cannot be determined, the state in which the taxpayer resides most frequently is considered. This is where the 183-day rule can be applied—but only at this stage.

4. Nationality

If the taxpayer habitually resides in both states or in neither, nationality is the deciding factor.

5. Amicable agreement between States

As a last resort, the competent authorities of both countries consult each other to determine tax residence.

Important : these conventional criteria are successive (we only move on to the next one if the previous one does not allow us to decide), unlike the criteria of Article 4B which are alternatives.

The primacy of conventions over Article 4B

Since the 2025 Finance Act, Article 4B itself specifies that persons meeting its internal criteria cannot be considered as domiciled in France if an international convention grants them residence in another State.

In practice: If you meet a criterion of Article 4B but a tax treaty recognizes you as a resident of the other country, France cannot tax you as a tax resident for taxes covered by that treaty.

However, be aware: This primacy does not extend to taxes outside the scope of the treaty. Certain French taxes may continue to apply even if you are a non-resident under the treaty.

Common situations among expatriates

• Seconded employee: Works abroad, family in France. Often remains a French tax resident through their household. However, the tax treaty may allocate the taxation of professional income to the host country.
• Expatriate retiree: He moves abroad but retains real estate and income in France. There is a risk of dual residency if the host country also considers him a resident.
• Cross-border leader: manages a French company from abroad. Subject to the criterion of main professional activity and potentially at the center of economic interests.
• Cross-border worker: lives in France, works in a neighboring country. Specific agreements (France-Switzerland, France-Luxembourg) provide for special arrangements.

Why human arbitration is supplanting raw data

At Balmont Conseil, we use Balmont AI to scan the case law of the Council of State the most recent. However, AI alone cannot sense the "substance" of a facility. The tax authorities scrutinize signs of social life, bank accounts, and your actual location. economy revenue. Only an expert can transform this data into an unassailable defense strategy.

The tax authorities are increasingly scrutinizing signs of social activity, subscriptions, bank accounts, and asset locations. Only an expert can transform this data into an unassailable defense or structuring strategy.

The consequences of poor analysis:

• Global taxation: All your income (foreign and French) is taxed in France.
• IFI: Your worldwide real estate assets are subject to the Real Estate Wealth Tax.
• Succession: Your heirs could be subject to French inheritance tax on everything they receive.

Conclusion: Secure your international mobility

Article 4B of the French General Tax Code (CGI) is not a fixed rule, but a framework. Understanding its mechanisms is the first step towards a successful expatriation. However, theory can never replace analyzing your own personal circumstances.

Don't let a flawed interpretation of the "183 days" undermine your wealth architecture.

Do you wish to validate your status? I propose a Feasibility study with Alexis Sagnier to put your current situation under "stress test" and anticipate any risk of tax reclassification.

FAQ – Article 4B of the French General Tax Code

1. Is it possible to be a tax resident in two countries at the same time?

Yes, according to the respective domestic laws of two countries, it is entirely possible to be considered a tax resident in both of them simultaneously. It is precisely to resolve these conflicts that bilateral tax treaties include tie-breaker rules. If no treaty exists between the two countries, the risk of double taxation is real.

2. Are 183 days sufficient to prove non-tax residency?

No. Spending fewer than 183 days in France is not sufficient to establish non-residence for French tax purposes. Article 4B does not mention this threshold. If your home is in France (family, habitual residence) or if your assets and income are primarily located there, you can be considered a French tax resident even without having resided there.

3. What is the "home" as defined in Article 4B?

The term "home" refers to the place where the taxpayer and their family normally live—the center of family life. This does not refer to the taxpayer's residence alone, but rather the usual living space of their extended household (spouse, children). A taxpayer who is absent from France for professional reasons can therefore have their home in France if their family resides there.

4. How does the tax administration control tax residency?

The tax authorities have increasing access to data: automatic exchange of banking information between countries (CRS/OECD standard), bank statements, energy bills, airline tickets, children's school registrations, and consumption of services in France. They analyze a range of indicators to establish actual residence, independently of the taxpayer's declarations.

5. Am I considered a French tax resident if my family remains in France?

In the vast majority of cases, yes. The household criterion—the first criterion of Article 4B—is met as soon as your spouse and/or children habitually reside in France. This criterion takes precedence over your personal physical presence. Only a tax treaty attributing residence to another state can override this criterion.

6. What evidence is required to justify non-residence for tax purposes?

The burden of proof lies with the taxpayer contesting their French tax residence. Relevant evidence includes: a tax residence certificate issued by the foreign administration, a lease agreement or property title abroad, active foreign bank statements, proof of children's schooling abroad, a local employment contract, utility bills (water, electricity, telephone) from abroad, and any document attesting to a social and economic life established outside of France.

Useful links:

• Calculate the exit tax upon expatriation
• Understanding Article 4 B of the French General Tax Code (CGI) on tax residence
• Article 4B of the CGI — Légifrance — Official text and history of the amendments
• BOFIP — Income Tax Scope and Tax Residence — Administrative doctrine on the criteria of Article 4B
• BOFIP — Relationship between tax treaties and domestic law — Primacy of conventions over Article 4B
• OECD Model Tax Convention — International reference for tie-breaker rules
• Impots.gouv.fr — Non-resident individuals — Practical information from the DGFiP