In summary…
A French company paying a dividend to a non-resident withholds 12.8% of the tax due if the beneficiary is an individual, 25% if it is a company, and 75% if the payment is made to a non-cooperative state or territory. A tax treaty may reduce this rate, provided that form 5000 (proof of residence) is submitted. before the payment.
Our position: for an individual, first compare the domestic tax rate of 12.8% (%) to the rate stipulated in the tax treaty; with Luxembourg, capped at 15% (%), the form offers no advantage. For a company, the difference can reach tens of thousands of euros, as in the example below, and a forgotten form will have consequences.
«The company withheld 25 % even though my country’s tax treaty stipulates a lower rate.» This statement usually comes from an executive whose foreign holding company received its dividend a month before anyone even thought about the form. Our article on withholding tax on dividends paid to a non-resident gives the basic rules; this one deals with the procedure, the schedule and the calculation.
1. What the company considers under domestic law
Three rates, and it's the paying company that applies them.
| Dividend Beneficiary | Withholding tax rate |
|---|---|
| Non-resident natural person | 12.8% |
| Non-resident legal entity (company) | 25% |
| Payment in a non-cooperative state or territory | 75% |
The distributing company declares and pays this withholding tax electronically, using form 2777, within fifteen days of the end of the month of payment. The recipient does not need to make any deposit for the withholding tax to be levied; the company is responsible for it.
Note: Non-residents are not subject to social security contributions on their dividends. The determining factor is tax residence outside of France, and the list of exempt income includes dividends, unlike rental income and capital gains from real estate.
For the technician. General Tax Code (CGI), Articles 119 bis 2 (withholding tax on dividends paid to non-residents) and 187 (rates). Declaration no. 2777 (2026 tax year, section 7): individuals 12.8 %, legal entities 25 %, 75 % for non-cooperative states and territories; online filing and payment within fifteen days of the end of the payment month. Social security contributions: service-public.fr, information sheet F2329, verified on June 30, 2026.
2. The rate stipulated in the agreement: to be requested, not assumed
Form 5000 is required before payment; otherwise, a refund will be issued.
The applicable convention sets a withholding limit, or even an exemption. To benefit from this, the beneficiary (the creditor) completes the form 5000, Proof of residence, in triplicate, including two copies in a foreign language and one in French. The tax office of their state of residence certifies section IV, unless a paper or electronic certificate of residence serves as proof. form 5001 is attached to settle the withholding tax on dividends.
There are two possibilities. If the form reaches the company before payment, It directly applies the rate stipulated in the convention (except for residents of Singapore, whom the instructions exclude from this procedure: in this case, domestic withholding tax is applied and the convention benefit is obtained through reimbursement, using forms 5000 and 5001). Otherwise, domestic withholding tax is applied and the beneficiary requests reimbursement, no later than December 31 of the second year following the year of payment, unless a special deadline is provided for in the convention.
Specifically. The residency certificate requested from the foreign administration takes weeks. Therefore, we ask the director to initiate the process before the decision to distribute the shares, not after the general meeting. The company retains a copy of the form received before payment: it will be responsible for justifying the applicable tax rate.
An example of reading: the Franco-Luxembourg convention
| Beneficiary | Domestic law | France-Luxembourg Convention (art. 10) |
|---|---|---|
| Natural person resident in Luxembourg | 12.8% | Ceiling of 15 %: the internal rate of 12.8 % remains the lowest |
| Luxembourg resident company | 25% | 15 %, and exemption if the company directly holds at least 5 % of the capital for 365 days, including the day of payment |
The beneficiary must be the beneficial owner: a mere intermediary cannot invoke the agreement. For agreements that reduce the rate, or even eliminate it, form 5000 must reach the paying institution before the dividends are paid; the detailed procedure is specified by the tax authorities. For the entire agreement, see our article on the France-Luxembourg convention.
For the technician. BOFiP BOI-INT-CVB-LUX-20 (version of 23/02/2021), no. 150: withholding tax capped at 15 %; exemption for companies that directly hold at least 5 % of the capital for 365 days; the intermediary is not a beneficial owner. Procedure: instructions for form 5000 (NOT-FR 51147#07). Only one example is given here: each agreement has its own rate and conditions.
3. Cumulation with the tax of the country of residence
French withholding tax is not the only tax on dividends. The recipient's country of residence generally taxes them in turn, then eliminates double taxation through a tax credit or exemption, depending on the applicable tax treaty: see the tax credit and the effective rate. The real cost of a dividend is therefore calculated in two stages: what France retains, then what the country of residence adds or credits.
Worked example
Situation. A French executive has left France. His simplified joint-stock company (SAS) is paying a dividend of €250,000: €100,000 to himself (40 % of the capital) and €150,000 to a Luxembourg company that he controls (60 % of the capital, held for more than a year), the effective beneficiary of the dividend.
Issue. The SAS applied the internal withholding tax without requesting any forms.
Strategy. Distinguish between the two beneficiaries. For the individual, the internal rate of 12.8% (%) is lower than the ceiling of 15% (%): there is no benefit to be gained from the form. For the company, form 5000 with 5001 must be submitted before payment.
Result. Individual: €12,800 withheld, with or without an agreement. Company: €37,500 if the SAS applies the 25 % tax due to a missing form, €0 if the exemption under the agreement applies at source, and a maximum of €22,500 if only the 15 % limit applies. The difference of €37,500 between a completed and a failed application can only be recovered by submitting a refund request within the specified timeframe.
Hypotheses. Distribution amounts set for the example, allocated according to the shares held; Luxembourg company fulfilling the conditions of the convention (beneficial owner, direct participation of at least 5 % for 365 days); no other exemption scheme examined. Illustrative example, calculated using the rules in force on 23/10/2026.
Our position
Make form 5000 a step in the decision to distribute
The distribution rate is not negotiated after the fact. It is prepared before the shareholders' meeting that votes on the distribution: proof of the beneficiary's residence, verification of their status as beneficial owner, submission of forms to the company, and retention of a copy. In the example above, this preparation results in a distribution of €37,500.
Frequently asked questions
What should be done if the company retained 25 % when the agreement stipulated a lower rate?
The beneficiary requests reimbursement using forms 5000 and 5001, certified by the administration of their country of residence. The request must reach the French administration no later than December 31st of the second year following payment, unless a specific deadline is stipulated in the agreement.
Who fills out form 5000?
The dividend recipient, called the creditor, completes the form in triplicate, and the tax authorities of their state of residence certify section IV, or issue a certificate of residence instead.
Can the withholding be reduced without an agreement?
No: the domestic tax rate applies, i.e. 12.8 % for a natural person and 25 % for a company, and 75 % for a payment in a non-cooperative State or territory.
Are you receiving or will you be receiving dividends from a French company from abroad?
The first interview is used to identify the applicable agreement, the beneficial owner and the schedule for the forms before the next distribution.
Are you a chartered accountant, lawyer or notary? And you are working with a company that distributes internationally? We act as a co-contractor on the beneficiary's structure and the agreement file: the client remains yours.
Book an appointment
The initial consultation is to establish your exact situation and determine if there is anything that can be done—sometimes there is nothing, and we will say so as well. Thirty minutes, with no obligation.
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Alexis Sagnier, financial and real estate investment advisor, insurance broker, AMF certified. ORIAS 13003497. Updated on 23/10/2026.
