French-American Tax Lawyer

The challenges of taxation between France and the United States

Economic relations between France and the United States are particularly strong. Every year, many entrepreneurs, executives, investors and individuals settle, invest or develop activities on both sides of the Atlantic. This international mobility raises complex tax issues, whether to determine tax residence, avoid double taxation or structure cross-border investment.

The Franco-American tax convention allows the distribution of tax duties between the two states, but its application requires a thorough analysis of the personal or professional situation of the taxpayer. Legal support is often needed to secure transactions and to prevent any risk of tax recovery.

French-American tax residence and tax treaty

Determining tax residence

Tax residence is the starting point for any analysis of international taxation. The criteria adopted by France and the United States differ significantly, which may lead to situations of double tax residence.

The tax convention concluded between the two countries provides for several criteria for separating the States concerned. The identification of the permanent home, the centre of vital interests or the usual place of residence requires a precise study of each situation.

Preventing double taxation

Revenues received between France and the United States may be taxed in both countries. Wages, dividends, interest, capital gains or real estate income are governed by specific rules defined by the tax treaty.

The objective is to avoid double taxation while complying with the reporting obligations imposed by each tax authority. A prior analysis helps to anticipate the tax consequences of each transaction and optimize their processing.

Taxation of individuals and businesses between France and the United States

Investment, heritage and international mobility

Investments in the United States, whether involving financial assets, equity interests in companies or real estate, may have tax consequences in France. Conversely, US or Franco-American taxpayers holding assets in France are subject to special tax and reporting rules.

Expatriation or return projects in France must also be carefully prepared in order to anticipate the tax implications of changing residence, international income or the transmission of wealth.

Subsidiaries, transfer pricing and reporting obligations

French companies developing their business in the United States must question the choice of their establishment structure, whether it be a subsidiary, a branch or a permanent establishment.

Financial flows between related companies, transfer pricing policy, withholding taxes at source or many international reporting obligations require legal certainty in order to limit the risk of litigation with French and US tax administrations.

Custom support in French-American taxation

Our firm supports individuals, business leaders and international groups facing tax issues between France and the United States.

We are involved in projects such as expatriation, international investment, group restructuring, establishment of subsidiaries, acquisitions or transfers of assets with an extraneous element.

Our intervention aims to secure the envisaged operations, prevent tax risks and defend the interests of our clients when dealing with tax administrations or in the context of control and litigation procedures.

Why call on a lawyer specializing in Franco-American taxation?

Franco-American taxation is based on the articulation of two particularly technical tax systems, along with the provisions of the bilateral tax convention and the numerous reporting obligations applicable to international taxpayers.

Using a lawyer specializing in Franco-American taxation makes it possible to anticipate the tax consequences of a project, secure an establishment or investment in the United States and benefit from personalized support at each stage. Whether it is an expatriation project, the structuring of an international group or the management of a cross-border heritage, an appropriate legal analysis is a real lever for safety and performance.