Returning to France from Hong Kong: leaving the Hong Kong residence, returning to the French home

For the France-Hong Kong tax treaty, the protocol defines Hong Kong residents as individuals who reside there for more than 180 days in a single tax year (from April 1st to March 31st) or more than 300 days over two consecutive tax years: the calculation over two years includes the previous year (see the numerical example). In France, only one criterion from Article 4 B is sufficient to determine tax residency. The year of return requires two forms, 2042-NR and 2042, and Hong Kong accounts are declared on form 3916.

Hong Kong: When does one cease to be a resident?

The protocol of the agreement specifies, for Hong Kong, that a resident is an individual who resides in the territory for more than 180 days during a tax year, or more than 300 days over two consecutive tax years, including the year in question. The IRD's page on the automatic exchange of information gives the same threshold and specifies that a resident is also someone who "ordinarily resides in Hong Kong," a concept it does not define. The tax year begins on April 1 and ends on March 31.

The calculation over two years adds the year in question to the previous year: in the numerical example below, 365 days followed by 105 days equals 470 days. This rule for a year of departure should be verified with the IRD (Investment Regulation Department). These thresholds are used to define residency in the agreement. Hong Kong's income tax, however, follows a territorial principle: it applies to income from employment or a pension "arising in or derived from Hong Kong." The rules for attributing services rendered outside Hong Kong and the departure formalities with the Hong Kong administration could not be reviewed: please contact the IRD or your employer for further information.

On the French side: the day a criterion becomes true again

The tax authorities (BOI-IR-CHAMP-10) establish three alternative criteria: primary residence or place of residence, main professional activity in France, and center of economic interests. The tax authorities state: "It is sufficient for one of these criteria to be met." The primary residence generally corresponds to more than six months of the year, but this rule is not absolute. Finding family accommodation in France may therefore suffice, without waiting for this period.

The 2010 agreement upon your return

If both Hong Kong and France consider you a resident in the year of your return, Article 4, paragraph 2, will determine your eligibility in this order: permanent home, then center of vital interests; habitual residence; nationality for France or right of residence for Hong Kong; and agreement of the competent authorities. If your permanent home is now solely in France, the first criterion will determine your eligibility.

• Pensions (Article 17). They are taxable in the Party where they originate. A pension paid by a pension fund recognized or regulated under Hong Kong law is considered to be of Hong Kong origin: it remains taxable there after your return.
• Double taxation (article 22). France grants a tax credit against French tax, capped at the corresponding French tax; Hong Kong grants, for certain French-source income, a credit against French tax paid, within the limits of its legislation. Details of the cap are provided in the text.
• Dispute (Article 24). The request for an amicable procedure must be submitted within three years of the first notification of the contested measure.

Our page on the agreement details the other articles.

Impatriate regime: conditions on the official page

Income from foreign-sourced movable capital may be eligible for a 50% exemption (%) under certain conditions; our pages on expatriates detail these cases. The scheme also applies to employees who return after more than five years with a company in the same group abroad, at the request of their employer.

The Year of Return: 2042-NR, 2042 and Hong Kong Accounts

According to the tax authorities, the income tax return for the calendar year of your return is filed the following spring, using two forms: form 2042-NR covers income earned during the period of non-residence, from January 1st to your arrival, and form 2042 covers income earned from your arrival to December 31st. Indicate your new address and your withholding tax rate. The tax authorities refer you to form 2043 (named 2043-SD in its information page URL) if you did not receive any income from French sources during your time abroad.

Form 3916 (or 3916-bis) concerns bank accounts, life insurance or capitalization contracts, and digital asset accounts opened, used, or closed abroad by individuals domiciled in France. The fine is €1,500 per undeclared account, and €10,000 if the country in question has not signed a tax treaty with France. This page does not specify whether this higher amount applies to Hong Kong.

Exit tax: the 440 framework

A deferral or postponement of exit tax left pending at departure is processed on the date of return in section 440 "Return to France" of form 2074-ETS3: return date and deferred capital gains for securities still held in your assets. Only these securities are eligible for tax relief or a refund. The detailed conditions in the instructions could not be read.

Health insurance: a public system in Hong Kong, the CPAM in France

According to CLEISS (old page), Hong Kong's health insurance is entirely state-funded, with no contributions from employers or employees. Upon your return, CLEISS indicates that in a country without a social security agreement with France, resuming employment automatically enrolls you in the French system; if you are not employed, universal health coverage is provided through the CPAM (French Primary Health Insurance Fund), with a three-month waiting period in principle. The existence of an agreement with Hong Kong is not confirmed here.

A departure on July 14, 2026: a numerical example (fictitious profile)

Situation. A fictitious executive resided in Hong Kong throughout the 2025/26 tax year. He leaves the territory on July 14, 2026 and settles in France on July 15, 2026.

Issue. He wants to know if he will remain a resident of Hong Kong for the 2026/27 agreement and how his French declaration is shared.

Strategy. He counts his days in each tax year, then allocates the calendar year 2026 between the 2042-NR and the 2042.

Result. The 2025/26 tax year has 365 days. The 2026/27 tax year, from April 1st to July 14th, has 105 days: the 180-day threshold is not reached. Over the two consecutive tax years 2025/26 and 2026/27, the total is 470 days, above 300; this threshold for a starting year can be verified with the IRD (French Tax Administration). In France, form 2042-NR covers 195 days (from January 1st to July 14th, 2026) and form 2042, 170 days (from July 15th to December 31st), totaling 365 days. This calculation does not include Hong Kong income tax, which is levied on income.

What changes depending on your situation

• The departure date from Hong Kong and the number of days of presence over the two tax years.
• The date when your home, your main activity or your economic interests return to France.
• The nature of your income: salary, Hong Kong pension, dividends, gains.
• A deferral of exit tax or a postponement of taxation in progress.
• Your accounts and contracts in Hong Kong.

These points are examined on a case-by-case basis. No tax results can be announced without this review.