The tax treaty between the French State and Saint-Pierre-et-Miquelon: a 1988 text on income, inheritances and gifts

Saint-Pierre-et-Miquelon is an overseas collectivity. Its tax treaty with the French State, signed on May 30, 1988, is not limited to income tax: it also covers registration fees, inheritance taxes, and gift taxes. Three rules stand out in the text: a cap of 5 or 15 % on dividends, interest taxed only in the hands of the beneficiary, and an exemption from the flat-rate tax on rental value for residents of Saint-Pierre-et-Miquelon who own a property in the departments of the French Republic. Sources: the text published by the tax authorities, the BOFiP (version of September 12, 2012), and the list of April 29, 2026.

A 1988 agreement between the State and the local authority

According to the BOFiP (Official Bulletin of Public Finances), the agreement was signed in Saint-Pierre on May 30, 1988, between the State and the local authority; a protocol forms an integral part of it. It was approved by Law No. 88-1263 of December 30, 1988, and entered into force on December 30, 1988. The administrative list classifies it as "IR – S – D – DE" (income tax, inheritance tax, gift tax, registration fees) and does not mention any amendments.

Article 25 sets the application dates: withholding tax for sums paid from December 30, 1988, inheritances and gifts from that date.

Maximum deductions and key rules

Who is a resident?

Article 4, paragraph 1, establishes a taxable person's place of residence in a territory based on their domicile, residence, or place of management. In the case of a natural person with dual residence, paragraph 2 applies, in order, their permanent home, center of vital interests, and then habitual residence.

Inheritance and gifts: five rules of procedure

Article 20 localizes the tax according to the nature of the property:

• buildings: where they are located; ;
• movable property related to a self-employed profession or an industrial or commercial activity: where it is carried out; ;
• tangible personal property, including works of art: where it is located on the date of death or donation; ;
• Shares in companies whose assets are primarily real estate: where these properties are located; ;
• substantial shareholdings: in the territory of residence of the company.

The protocol: housing in a department

Point 2 of the protocol exempts individuals residing in Saint-Pierre-et-Miquelon who own one or more properties in the departments of the French Republic from the flat-rate tax on rental value referred to in Article 164 C of the French General Tax Code (exact wording to be verified in the text). According to point 3, in the event of termination, points 1 and 2 apply for the last time to the year ending at the end of which the agreement was terminated.

Elimination of double taxation

Article 22 distinguishes between two sides. For the local government, income taxable in the French state is generally exempt from local taxation; dividends and royalties from the state are taxed on their gross amount, with a tax credit capped at the local tax rate. For the French state, income taxable in Saint-Pierre-et-Miquelon is generally exempt from state tax, except for dividends, royalties, and capital gains, which are taxed on their gross amount with a tax credit capped at the state tax rate. Specific rules apply to inheritances and gifts.

Amicable procedure, exchange of information, denunciation

The case must be submitted within two years of the first notification of the measure (Article 23, paragraph 1). Article 24 provides for the exchange of necessary information. According to Article 26, the convention is concluded for an unlimited period; from 1 January 1989, each territory may terminate it with a minimum notice period of six months, effective at the end of a calendar year.

Limitations of this sheet

It does not address the permanent establishment beyond the twelve-month period for a construction project (Article 5 § 3), business profits, registration fees under Article 21, artists and athletes, or the reimbursement of withholding tax. Its application to real estate wealth tax is not established. The local authority's rights should be confirmed with a local professional.