Leaving France for Ireland: dual residency, exit tax and the 183-day rule

Moving to Ireland requires a clean break. The 1968 Franco-Irish tax treaty does not contain a tie-breaker rule for individuals: if both France and Ireland consider you a resident, the French tax authorities (BOFiP) state that the treaty's provisions regarding resident income do not apply. In Ireland, residency is determined by the number of days spent in the country. In France, the exit tax applies to certain securities holders.

Why a clean break: the agreement does not separate two residences

The 1968 convention does not establish successive criteria for individuals (home, vital interests, habitual residence, nationality). Article 2, paragraph 7, defines a resident of Ireland as a person resident in Ireland for the purposes of Irish tax and not resident in France. The definition of a resident of France is symmetrical.

The French tax authorities (BOFiP) (BOI-INT-CVB-IRL-10) draw the following conclusion: when a person can be considered a resident of both states, the provisions of the tax treaty relating to the income of a resident of one state do not apply. Double taxation is then avoided "under the conditions provided for in Article 21." The same BOFiP specifies that, on the French side, this applies to persons falling within the scope of Article 4 B of the French General Tax Code (CGI).

A departure file is therefore prepared by reviewing the criteria of Article 4B one by one, before the departure date. Our page on the France-Ireland Convention details Article 21.

French tax residence: only one criterion is needed

The French tax authorities (BOFiP) use three criteria: the home or principal residence, professional activity (excluding secondary activities), and the center of economic interests. Meeting only one of these criteria is sufficient for being considered domiciled in France. The six-month residency requirement is not an absolute criterion. A person domiciled in France is taxed on both their French and foreign income, subject to tax treaties. A person domiciled outside France is taxed only on their French-source income.

A manager who goes to Ireland can therefore remain domiciled in France if one of the three criteria remains met, for example if his home or his main place of residence, or the center of his economic interests, remains in France.

The exit tax: the two conditions

The exit tax applies to taxpayers who have been tax residents of France for at least six years during the ten years preceding the transfer. You must also hold at least 50% of the profits of a company, or securities with a total value of €800,000. The official information sheet and instructions do not define this threshold in the same way ("at least" in one, "greater than" in the other). If your securities are close to this amount, have your file reviewed before your departure date.

The rates: 12.8 % of income tax, and social security contributions of 17.2 % for a transfer in 2025 or 18.6 % for a departure in 2026.

Suspension, tax relief and monitoring

The French Treasury Directorate General (DG Trésor) indicates that Ireland joined the European Union (now the EU-9) in 1973 and is part of the Eurozone. The parliamentary document accompanying the 2027 draft budget lists 11 states and territories on the French list of non-cooperative states; Ireland is not included. This list is valid as of your departure date, and the relevant information sheet is that for transfers in 2025.

Year of departure: 2042, 2042-NR and IFI

According to the tax authorities, you file a 2042 form for income from January 1st to your departure date. The 2042-NR form only includes your French-source income taxable in France after your departure. Foreign-source income is handled through the 2047 form. The Non-Resident Tax Office becomes your tax administrator if you retain French-source income, and it also handles your Wealth Tax (IFI). To pay online, you need an account domiciled in France or the SEPA zone. Update your address in your online account on the French Public Finances website.

What France continues to impose

The minimum tax rate for a non-resident is 20% of the % tax on income up to €29,579 in 2025, and then 30% of the % tax thereafter. The option for the average rate remains available, provided that all household income is declared. The IFI (French wealth tax) continues to apply to real estate located in France with a net taxable value exceeding €1,300,000 as of January 1st.

Capital gains on securities are generally not taxed in France for non-residents. The exception is if more than 25% of the rights to company profits were held at any time during the five years preceding the sale, in a company subject to corporate income tax and headquartered in France. In this case, the tax is 12.8%, or 75% for a seller domiciled in a non-cooperative state. The Franco-Irish tax treaty has its own article on the sale of shareholdings; its effect in this case should be verified in the relevant documents.

On the Irish side: 183 days, 280 days, 30 days

Revenue, the Irish tax authority, uses three thresholds for residency:

• 183 days or more of presence during a fiscal year; ;
• or 280 days or more in total, adding the current year and the previous year; ;
• A presence of 30 days or less in the year excludes residency.

A day counts as any time spent in Ireland for part of the day, with two exceptions: remaining in the airside area of an airport or port, and being prevented from leaving due to unforeseen and unavoidable circumstances. If you arrive with the intention of residing in Ireland the following tax year, you can elect to be a resident from the year of arrival; you will then be taxed on your worldwide income and must notify the Revenue Authority in writing.

For employment income only, the "split-year" tax regime allows you to avoid being taxed in Ireland on earnings made abroad before your arrival in the same year. You must be an Irish resident in the year of arrival, not have been a resident the previous year, and be a resident the following year. For arrivals after December 31, 2024, the application is made through your tax return.

Residence permit: no residence permit for a citizen of the Union

France Diplomatie states that EU citizens are exempt from visa requirements, that a valid identity card or passport is necessary, that Ireland does not issue residence permits to EU citizens, and that no registration with immigration services is required. This France Diplomatie page does not have an update date. Citizens Information indicates unrestricted stays of up to three months; beyond that, one must be employed, have sufficient financial resources and health insurance, be a student, or a family member.

This page does not deal with Irish capital gains tax: the 2027 Budget, presented on October 6, 2026, announces a change to its rate. Have the applicable rate verified on the date of any sale by an Irish professional.

Departure in 2026 with 52 % from a company: numerical example (fictitious profile)

Situation. A fictitious executive, tax resident in France for over ten years, holds 52,% of a company's profits. His shares are worth €1,450,000, representing an unrealized capital gain of €920,000. He relocates to Ireland in 2026.

Issue. He meets both conditions for the exit tax. He wants to know the tax involved and the timeframe for the tax relief.

Strategy. He applies 12.8 % and 18.6 % to the unrealized capital gain, then compares the value of his securities to the threshold of €2,570,000.

Result. Income tax: €117,760. Social security contributions: €171,120. Total: €288,880, representing 31.4% of the capital gain. Since his securities are worth less than €2,570,000, the tax relief period is 2 years. With securities worth €2,900,000, it would be 5 years. The deferral period depends on the state's classification at the time of departure. The profile and amounts are fictitious.

What changes depending on your situation

• The value of your securities and the percentage of profits held.
• The links you maintain in France: home, work, economic interests.
• The number of days spent in Ireland in the year of departure and the previous year.
• The nature of your income: employment, dividends, French rents.
• Real estate in France, which remains within the scope of the IFI.

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