Exit tax: deferral upon request, tax representative and guarantees

According to the information sheet on impots.gouv.fr, the deferral of exit tax payment is "either automatic or granted upon request." The rule is not simply a matter of "European Union or not": the automatic deferral described in form 2074-ETD covers the European Union and other countries with which France has tax treaties, provided that the destination country is not non-cooperative as defined in Article 238-0 A of the French General Tax Code (CGI). For a destination that does not fall into this category, the tax is generally immediately due, unless an express request is made before departure within 90 days. The wording of this request varies depending on the official website (this should be verified). This request must be made with a tax representative established in France and with security, which the information sheet and instructions refer to as "guarantees." This page does not categorize any country: the information sheet for the year of departure and the official list of non-cooperative countries should be consulted for your specific destination.

Automatic or on-demand deferment: the rule of the notice

The instructions distinguish several cases. Case #1 is that of the initial departure. The automatic deferment applies if you transfer your tax residence:

• in a Member State of the European Union; ;
• or in another State or territory linked to France by an administrative assistance agreement and by a mutual assistance agreement in matters of recovery.

Case No. 1 has a caveat: this state or territory must not be non-cooperative within the meaning of Article 238-0 A of the French General Tax Code (CGI). The information sheet contains a list of states bound to France by these agreements, for transfers occurring from January 1, 2025. We do not reproduce it here, nor do we indicate whether your destination is included: it can be found in the information sheet for the year of your departure. The list of non-cooperative states is not included in the information sheet, which refers to Article 238-0 A of the CGI: verify it with the official source, as of your departure date. To find out if France has an agreement with a country, see Tax treaties signed by France ; this list does not replace either the list in the notice or the list of non-cooperative states.

Cases 2, 3, and 4 concern a taxpayer who had already transferred their tax residence. According to the explanatory notes, the first transfer took place before January 1, 2019, to a Member State of the European Union, Iceland, or Norway (case 2); before January 1, 2019, outside the European Union, Iceland, and Norway (case 3); or on or after January 1, 2019, to a country not included in case 1, followed by a further transfer to a country included in case 1 (case 4). These cases are addressed in the explanatory notes and are subject to a case-by-case review.

Why "outside the EU" is not enough to answer

Moving outside the European Union does not in itself automatically grant a deferral upon request. The criterion outlined in the information notice is case no. 1: European Union, or an agreement on administrative assistance and recovery, with the exception of non-cooperative states. The deferral upon request applies to taxpayers who transfer their residence to a state or territory other than those covered by case no. 1.

Conditions for a stay of execution upon request

An explicit request. You declare the amounts on form 2074-ETD and expressly request a deferral. You can request it separately for unrealized capital gains, deferred capital gains, and outstanding balance claims. If you do not request it for all three, the deferral will be partial.

A 90-day period. The information sheet states that, for transfers made on or after November 22, 2019, the application must be submitted "no later than 90 days before the transfer," and no longer within the 30 days preceding it. The instructions themselves use two formulations: "within ninety days preceding the transfer" in Part III.B, and "no later than 90 days before the transfer of your tax residence outside of France" in Part V. The official pages differ: this page does not provide a definitive answer, and you should verify the deadline with the tax authorities before setting your departure date.

A tax representative. You appoint a tax representative established in France, authorized to receive communications relating to the assessment, collection and litigation.

Securities. You are proposing security interests to ensure the recovery of the Treasury's claim (the word used in the notice and information sheet is "guarantees"). Their amount is 12.8% of the total amount of capital gains and receivables. For capital gains deferred under Article 150-0 B ter of the French General Tax Code (CGI), the notice applies the historical tax rate. If the tax calculated according to the tax scale exceeds this amount, additional payment must be provided within one month of receiving the tax assessment notice. The proposal should be submitted on plain paper.

This page does not deal with the nature of the security accepted, nor the consequences of an insufficient proposal: these points fall under the purview of the notice and the administration.

Where and how to deposit

Form 2074-ETD is only available in paper format. With a deferral upon request, there are two filing options:

Without a request for deferment, form 2074-ETD is filed the year following the transfer, with the former tax office, along with forms 2042 and 2042 C. Details of the forms are in Exit tax: forms 2074-ETD, ETS and ETSL, the annual monitoring in Exit tax: annual obligations during the grace period.

If you change countries again

When the deferral was automatic and you transfer your residence again to a state that does not allow it, the automatic deferral is terminated. You must inform the non-resident tax office in writing within two months of the new transfer. Conversely, in cases where an automatic deferral replaces a deferral upon request, the notice states that you are no longer required to have a tax representative and that you can request the release of the security interests when filing your tax returns for the following year. The events that terminate the deferral (assignment, gift, death) are addressed in Exit tax: gift or death during the deferral period.

Deferral upon request: numerical example (fictitious profile) of securities and time limits

Situation. An executive plans to transfer their tax residence to a country they believe is not covered by case #1. They have €1,500,000 in unrealized capital gains and a claim for additional payment worth €200,000 on the date of the transfer. No country is specified in this example.

Issue. Without a deferral, the tax is in principle immediately payable. At 12.8 %, the income tax at the flat rate on €1,700,000 represents €217,600 (social security contributions not specified; capital gains and receivables are assumptions in the example).

Strategy. He prepares an express application on form 2074-ETD, appoints a tax representative and has his collateral valued.

Result. The required security deposit is 12.8 times the value of €1,700,000 (%), totaling €217,600, with a possible additional payment if the tax brackets result in a higher tax liability. The initial paper filing with the non-resident tax office must be completed 90 days before the transfer, although the official wording varies. This deadline must be confirmed before setting the departure date. Therefore, this page does not calculate any deadline.

Deferment upon request: what changes depending on your case

• Your destination country decides whether the deferment is automatic or must be requested: this can be found in the information leaflet for the year of departure.
• The cooperative or non-cooperative nature of the destination state, within the meaning of article 238-0 A of the CGI, is taken into account in the analysis of case no. 1.
• The composition of your earnings (latent, deferred, receivables) determines the amount and rate of collateral.
• A transfer prior to 2019, or a second departure, falls under cases no. 2 to 4.

These points are examined on a case-by-case basis.