Returning to France from Morocco: declarations, Moroccan accounts and income from Moroccan sources

Your return to France has three immediate consequences: your French and foreign income must be declared upon your arrival, your accounts held in Morocco must be declared using form 3916, and income from Moroccan sources is divided between the two countries according to the 1970 tax treaty. If an exit tax is pending, the official notice states that your return qualifies you for a tax refund or rebate, provided you still hold the securities. This page does not cover exit formalities from Morocco or Moroccan taxation: the Moroccan tax authorities could not be consulted.

Your residence in France is re-established with a single criterion.

According to the BOFiP (Official Bulletin of Public Finances), only one of the criteria in Article 4 B of the French General Tax Code (CGI) needs to be met to be considered domiciled in France: the home or principal place of residence, the main professional activity carried out as a primary occupation, or the center of economic interests. A presence of more than six months in the year is generally considered for principal residence, but this is not an absolute requirement.

If Morocco still considers you domiciled there in the year of your return, the Franco-Moroccan convention resolves the conflict in Article 2: your permanent home, then, if you have one in each country, the center of your professional activities, and finally the place where you reside the longest. The administration's commentary clarifies that the convention applies its own criteria: the domicile mentioned in Article 4B is not decisive. Our page on the convention details the other articles.

Statements from the year of the comeback

The administration outlines the following steps:

1. update your address in the Public Finances section, under "My profile", then "My means of contact"; ;
2. update your bank details, under the heading "Withholding tax"; ;
3. If you do not receive any income from French sources before returning, file form 2043 with the individual tax office of your new residence, to update your withholding tax or set up advance payments; ;
4. the following spring, file form 2042-NR for French-source income taxable in France only, from January 1st until return, if such income existed; ;
5. File form 2042 and its annexes for your French and foreign income, from arrival to December 31st.

The year of return has two periods: non-resident until arrival, resident afterwards.

Accounts and contracts opened in Morocco: forms 3916 and 3916-bis

Forms 3916 and 3916-bis must be submitted with your income tax return for foreign bank accounts, life insurance or capitalization contracts, and digital asset accounts. The tax authorities indicate a fine of €1,500 per undeclared account, increased to €10,000 if the account is located in a country that has not signed an anti-fraud treaty with France. We do not know which country Morocco falls under; this should be verified with the relevant source. This page does not provide information on Moroccan legislation regarding these accounts. Before returning home, make a list of all your accounts: bank, account number, opening date, and any closing date.

Income from Moroccan sources after the return

The administration's commentary on the convention indicates that pensions of Moroccan origin paid to a person domiciled in France are taxable in France, in accordance with Article 17: a pension is taxable only in the State of tax domicile of the beneficiary.

For dividends, Article 13, paragraph 3, allows the state of the paying company to levy a tax capped at 15% of the gross amount for the beneficial owner. Interest is capped at 15% for term deposits and treasury bills, and at 10% for other types of income. Article 25 then allows France, the state of residence, to include the gross amount in the tax base; the reduction granted corresponds to the amount of taxes levied in Morocco, up to the limit of the taxes applicable to this income. For this calculation, the text uses a deemed rate of 25% on dividends distributed by companies domiciled in Morocco, and 10% on interest from loans issued by Moroccan organizations specializing in economic development. The text does, however, stipulate a rate of 33.33 % in a specific case, which this page does not detail: this rate must be verified before any calculation. The commentary clarifies that the flat rate of 25 % remains applicable. The actual rate levied by Morocco is governed by Moroccan law, which this page does not explain in detail.

Exit tax: returning entitles you to a tax credit or refund

If you left France with a deferred exit tax payment, the 2074-ETD notice lists the re-establishment of your tax residence in France among the events that trigger a tax refund. Without a deferral, it results in a refund. One condition: you must still hold the securities or receivables in question on the date of your return. This event is accompanied by the filing of a 2074-ETS3 return the following year, along with forms 2042 and 2042 C. Furthermore, the refund also applies after a period of two years if the total value of the securities is less than €2.57 million, and after five years if it exceeds that amount. Conversely, the notice lists the transfer for consideration (sale, contribution, exchange), repurchase, and cancellation of securities among the events that make the tax payable. Our page on the annual monitoring of the deferral details the obligations.

Expatriate status: five calendar years outside of France

The provisions of Article 155 B apply to individuals previously domiciled outside of France. The administration considers:

• a tax residence outside France for the five calendar years preceding the taking of duties, and the transfer of the tax residence to France on that date; ;
• recruitment by a French company linked to the foreign company, or directly from abroad; ;
• a period until December 31 of the eighth calendar year following the commencement of duties; ;
• the scheme ends if the employee leaves the host company, except in the case of a change of duties or employer within the group.

The advantages cited include exemption from the expatriation bonus, the possibility of assessing the bonus at 30%, the exemption of 50% of certain foreign-sourced income, and, for the French wealth tax (IFI), taxation only on real estate located in France for five years. Individuals who came to work in France of their own volition, or who were already domiciled in France at the time of recruitment, are excluded.

Outside of the regime, a tax resident is liable for IFI on their real estate assets and rights located in France or abroad, beyond €1,300,000 of net taxable assets on January 1st.

The formalities of the return

Service-public.fr indicates that the authorities of the country you are leaving may request a tax clearance certificate, also known as a tax clearance certificate, issued by that country's tax administration. Any money transfer of at least €10,000 must be declared online to customs authorities. You must also notify the relevant organizations in your country of departure. Registration with France Travail requires a French address. For health insurance, the situation differs depending on whether you remain affiliated with the CPAM (French national health insurance fund) or not.

Framework for returning in 2027: expatriates and Moroccan accounts, a numerical example (fictitious profile)

Situation. A fictitious executive, domiciled outside France from 2022 to 2026, returns to take up his duties in a French company on September 1, 2027. He has kept three bank accounts in Morocco.

Issue. He wants to know the period during which the expatriate regime can run, and what it would cost to forget Moroccan accounts in his declaration.

Strategy. He checks the five calendar years preceding the start of his duties, calculates the eighth calendar year following, and lists his accounts for forms 3916.

Result. The five calendar years to be examined are 2022, 2023, 2024, 2025, and 2026. If applicable, the scheme runs until December 31, 2035. At the base rate of €1,500 per account indicated by the tax authorities, three undeclared accounts would represent a €4,500 fine; the fine, which can be increased to €10,000 in certain cases, is not ruled out for Morocco (see above). Eligibility for the scheme is verified by reviewing the application. The profile, dates, and number of accounts are fictitious.

What changes depending on your situation

• Your tax residence before returning, which determines the tax regime for expatriates.
• Your arrival date and the nature of your French-source income before your return.
• The existence of a deferred exit tax and the holding of securities on the date of return.
• The nature of your income from Moroccan sources: pension, dividend, interest.
• Your accounts and contracts held abroad.

The rule depends on your situation. No results are guaranteed.