Article summary
There are many reasons why you may need to transfer money from abroad to France. However, tax consequences and when to declare your transfers are just two of the things you need to consider before you do so.
This guide outlines the laws and regulations around money transfers, the types of transfers you need to declare, and the risks of not following proper procedure. This article should tell you everything you need to know about receiving and sending money abroad, including the key taxes and which authorities you need to contact.
You can also learn more about cash transfers and dealing with customs, what the difference is between gifting and transferring your own money from abroad, and what documentation you’ll need to provide for each type of transfer.
In this article
- What is the current law and regulation around transfers from abroad to France?
- What types of transfer do you need to declare?
- Cash transfers
- What are the risks if you don’t declare your accounts or a cash transfer?
- FAQs and guides
What is the current law and regulation around transfers from abroad to France?
France is part of the European Union and therefore regulations specify that cash can be transferred freely between here and other EU member states. However, if any sum equal to or greater than €10,000 in cash is being transferred in or out of France, it must be declared to customs.
The definition of cash includes:
- coins and banknotes in any currency
- all forms of cheques, including traveller’s cheques
- transferable securities
- prepaid cards
- casino chips
- mandates
- promissory notes
- gold bullion
If €10,000 or more of any of the above is being physically transported into France, the carrier is legally required to make a declaration to customs. This is true even if the person carrying the money is not the owner. Anyone carrying a sum equal to or greater than €50,000 will also be required to document the origin of the money.
Declarations can be made online to Dalia up to 30 days before the date of transfer. Credit, payment and electronic currency institutions are required to report any large cash or electronic currency transfers to TRACFIN within 30 days of the date of the transfer.
If you receive money from abroad, taxes may also need to be paid – all transfers should be reported to ‘le fisc’ or the relevant tax authorities.
France has double-tax treaties with many countries. So there are many types of tax that you will not have to pay again if you have already paid in the country of origin.
What types of transfer do you need to declare?
Transfers of sums, titles or values of an amount equal to or greater than €10,000 between member states of the European Union must be declared to customs, unless those transfers are completed through the intermediary of a bank or other financial institution. Cash funds equal to or greater than €10,000 that are transferred in or out of the European Union must also be declared to customs.
Failure to adhere to these rules can result in the sum being confiscated, or a fine being issued, which will be equal to one quarter of the total value of the sum in question.
Money held by a French national or official resident of France in bank accounts overseas must be declared to the tax authorities, even if it is not transferred into the country.
Individuals or companies holding accounts in other countries are required to disclose this in their tax returns and supply references for the accounts and their values. Any person found to be holding undisclosed sums in an overseas bank account could be found to be hiding taxable income, which can incur financial and criminal penalties.
The transfer of money from abroad to France also has tax consequences. However, as France has double-tax treaties with many countries, declaring overseas income and accounts does not necessarily mean you will pay more tax. Most people will only be required to pay tax in one country, provided they can prove the tax has been paid. There may be some exceptions to this, such as inheritance tax when sending a large cash gift.
The transfer of any sum equal to or exceeding €50,000 requires further documentation. Carriers of these sums will be required to prove the origin of the money. Proof of origin documentation could include:
- bank statements or withdrawal receipts
- contracts showing real estate transactions or the transfer of securities
- contracts or invoices
- documents proving manual currency exchanges
- proof of winning money in a game
Supporting documents must be provided to customs within six months prior to the transfer for cash, and within two years for other forms of assets such as gold, securities or money orders.
Cash transfers
Cash transfers from abroad to France that transit through physical borders must be declared to customs for any amount equalling or exceeding €10,000. This can be completed by visiting Dalia, the online capital declaration service for France. Declarations can be made from 30 days prior to the transfer.
The transfer of cash over €10,000 by postal mail or freight should also be declared to customs in advance. A declaration of disclosure should be sourced from customs, completed and returned within 30 days.
The €10,000 limit applies to individuals, couples or families with a community of interest. For example, if a married couple transfers €5,000 each, the sums must be declared unless proof is provided that they each individually own their share. This could be through showing a PACS agreement separating personal property.
Customs may also require further checks for smaller amounts being transferred if they have reason to believe the money may come from criminal sources. Transfers of more than €50,000 require proof of origin.
What are the risks if you don’t declare your accounts or a cash transfer?
Any transfer from abroad to France can have tax consequences or need to be declared to customs. When transferring any sum of money, it is prudent to research what to declare and where.
The risks to the individual of not declaring money transfers or money held in overseas accounts range from fines to criminal sentencing, depending on the severity.
False declaration or non-disclosure of cash transfers into France can result in confiscation of the entire sum or a fine, which could be as much as 50% of the value of the sum in question.
Money transferred without the proper customs declaration is counted as taxable income, even if tax has already been paid in another country. This can result in interest payments for late payment of tax, as well as a higher tax bill.
Non-disclosure of sums held in accounts overseas can result in fines of up to €1,500 per account, or €10,000 per account if it’s held in a territory that does not have administrative agreements with France. Account holders may also receive an 80% surcharge and late payment fees.
FAQs and guides
- What is the maximum amount for an international bank transfer?
- Where to find the international ID of a bank
- How to follow a bank transfer
