France-Saudi Arabia tax treaty: your property in France

Yes. You file an income tax return in France every year (forms 2042 and 2042 C PRO for furnished rental). Article 5 of the treaty leaves the taxation to France.

Not in the usual case. Saudi Arabia has no personal income tax regime. You pay French tax and social contributions.

Possibly. Article 14 A exempts your French property if your eligible French investments are worth at least as much, held for more than 183 days in the previous year, and the BOFiP applies this mechanism to the IFI. You must also be a resident within the meaning of article 4: an employee who is not subject to Saudi tax may find this challenged. Request a ruling before relying on it.

Nothing guarantees it. Article 4 requires being liable to Saudi tax, and salaries are not taxed there. The Conseil d’État holds, for another treaty, that a person who is exempt is not a resident. Your rents and your capital gain do not depend on it. The IFI and inheritance do.

It is renewed in five-year periods. The current extension took effect on 1 January 2024: it covers the years 2024 to 2028. A new renewal will be needed afterwards. Without it, French law would apply alone to the IFI and to inheritance.

For an inheritance, article 17 § 3 reserves the taxation of movable property, including accounts and investment securities, to the State of residence of the deceased. This assumes that you are a resident within the meaning of the treaty. Life insurance and SCI shares follow their own rules. For a gift, the treaty does not apply: the French rule applies.

Not as the texts stand. It targets nationals of the EU or EEA, and the BOFiP extends it only to people protected by a non-discrimination clause. The France-Saudi Arabia treaty contains none.

Not to income tax: the flat-rate taxation on rental value was abolished from 2015 income, and article 5 § 4 already ruled it out for Saudi residents. You pay property tax and housing tax on second homes, and the property falls within the IFI base.

An SCI does not change how rents are taxed in France. It deprives you of the €150,000 exemption on resale. It counts as a property for article 14 A as soon as its assets are more than 50% real estate. It does not guarantee that you avoid French inheritance tax. To be studied with your adviser.