Understanding Tax Residency in France vs India: A Guide for Indian Expats and Students in the EU

“Am I a tax resident in France? Do I need to declare my income in India too? What if I live in Germany but work in France?”
These are just some of the common questions we hear from young Indian professionals, students, and families newly arrived in Europe. Unfortunately, many only find out the answers after facing legal issues or unexpected tax bills.

At L’Association Frehindi, we aim to empower the Indian and South Asian expat community in France and across the EU with accurate, practical, and timely information. Today’s blog tackles a crucial but often misunderstood topic: tax residency — and how it differs between India and France/EU countries.

Why Does Tax Residency Matter?

Your tax residency determines where and how you pay taxes.
If you’re considered a tax resident in France, you must declare your global income, including what you earn in India. If you’re a non-resident, you’re only taxed on income from French sources.

Understanding these rules is especially important now, as more Indians than ever are coming to France and the EU, particularly as:

• Students on VLS-TS student visas

• Tech professionals on Passport Talent visas

• Entrepreneurs and researchers

• Families joining their loved ones

Many arrive without realizing that their intention to stay, or simply staying for over 183 days, can already make them French tax residents — with obligations backdated to the very first day of entry.

Tax Residency in France (EU) – Key Criteria

According to French tax law, you are considered a tax resident if even one of the following applies:

1. Your household (foyer) is in France
   If your spouse or dependents live in France, even if you travel frequently for work, you’re still considered a resident.

2. You spend more than 183 days a year in France
   This makes France your primary place of stay.

3. Your main professional activity is in France
   Whether employed or self-employed, if your core work is in France, you’re likely a tax resident.

4. Your economic interests are in France
   If you run a business, earn most of your income, or manage investments here, you’re taxable as a French resident.

Real-life Example:

Ravi, a 24-year-old student from Pune, arrived in Paris on a VLS-TS student visa in September 2024. He believed he wouldn’t need to declare any income since his part-time job only pays €500/month. But he didn’t realize that:

• He had become a French tax resident from day one.

• He was required to file a tax return in May 2025, even for small income.

• He must declare any Indian bank interest or rental income too.

Ravi contacted L’Association Frehindi after receiving a notice from French tax authorities. We guided him to regularize his situation and helped him understand India-France double taxation treaty provisions to avoid paying taxes twice.

Tax Residency in India – How It Differs

In India, tax residency depends on physical presence, not where your family or job is located.

You are a tax resident in India if:

• You stay in India for 182 days or more during a financial year (April–March), or

• You stay in India for 60 days in the year and 365+ days in the previous 4 years.

If you don’t meet these criteria, you’re a non-resident, taxed only on income earned or received in India.

What Happens If You Qualify in Both Countries?

It’s possible to be a tax resident in both India and France. For example:

Priya, a data scientist from Delhi, works remotely for an Indian company but lives in Lyon with her spouse, who is on a local work contract. She visits India frequently for work. Priya may qualify as a tax resident in both countries.

In such cases, double taxation avoidance agreements (DTAA) help determine:

1. Where is your permanent home?

2. Where are your strongest personal and financial ties (center of vital interests)?

3. Where do you spend the most time?

4. If all else fails, nationality is considered.

France and India have a DTAA that allows relief by exempting or crediting foreign taxes.

What Should Indians in the EU Know and Do?

At L’Association Frehindi, we often assist students and families who get into trouble due to misinformation or language barriers. Here’s what you should do proactively:

✅ Understand your visa and how it affects your tax status
✅ Track your days in France and in India
✅ Declare all global income if you’re a French tax resident
✅ Consult with tax experts or associations like ours to avoid double taxation
✅ File taxes in time – deadlines in France usually fall in May/June for the previous calendar year
✅ Keep records of Indian income and taxes paid for DTAA relief

How L’Association Frehindi Can Help

Whether you are a:

• Student unsure about French tax rules

• New employee trying to understand tax filing

• Family relocating to France with foreign investments

• NRI working between France and India

We at L’Association Frehindi are here to support and guide you with trusted information. We work under the patronage of the Indian Embassy in Paris and collaborate with Indian embassies across the EU to ensure our community is well-informed and protected.

Final Word

Understanding where you’re classified as a tax resident isn’t just a bureaucratic necessity—it’s a strategic step in safeguarding your financial well-being. With the right insight and guidance, you can prevent costly errors and confidently manage your fiscal obligations.

If you find yourself uncertain about your tax status or overwhelmed by the paperwork, don’t hesitate. Reach out to us at L’Association Frehindi. We’re dedicated to making your transition and life in France and the broader EU not only smoother but also more secure and empowered.