France-United Arab Emirates (Dubai) 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.

No. The Emirates do not tax the income of individuals. You pay only French tax and social contributions.

No, unless you are affiliated to a social security scheme of the EEA, Switzerland or the United Kingdom. A resident of the Emirates pays 17.2% on unfurnished rental and 18.6% on furnished.

Possibly. Article 16 A exempts your French real estate if your eligible French financial investments are worth at least as much. This text targeted the ISF; its application to the IFI is not confirmed by the authority. Request a ruling before relying on it.

For an inheritance, the treaty reserves the taxation of movable assets, including investment accounts and securities, to the State of residence of the deceased (article 17 § 3). French duties then apply to your French real estate. Life insurance and SCI shares follow their own rules, to be analysed separately. For a gift, the treaty does not apply: the French rule applies.

Emirati law uses 183 days of presence over 12 months, or 90 days with a residence permit and a permanent home, a job or an activity on the spot, or else a habitual residence and the centre of your interests in the Emirates. The Federal Tax Authority issues a tax residence certificate for a past period of 12 months at most.

It helps prove your residence, without protecting you in every case. If you keep your home, your main activity or the centre of your economic interests in France, article 19 § 2 allows France to tax you as a French resident, notwithstanding the treaty. This clause does not cover Emirati citizens.

Not to income tax: the flat-rate taxation of non-residents on rental value was abolished from 2015 income, and article 18 § 3 of the treaty already set it aside for residents of the Emirates. You pay property tax and housing tax on second homes, and the property falls within the IFI base.

It depends on your project. The SCI does not change the taxation of rental income in France. It removes the €150,000 exemption on resale and, for the capital gain on shares, falls under the 80% threshold of article 11. It does not guarantee escaping French inheritance duties. To be reviewed with your adviser.