---
title: "Leaving France for Andorra: French exit tax and checklist"
url: https://andorrefiscal.fr/en/tax/leaving-france-tax-residency
description: "Leaving France for Andorra for tax purposes: Article 4 B, departure-year tax returns, exit tax with no automatic deferral, income France still taxes."
updated: 2026-10-11
language: en
publisher: Andorre Fiscal (https://andorrefiscal.fr)
---

# Leaving France for Andorra for tax purposes

> Markdown version of the page https://andorrefiscal.fr/en/tax/leaving-france-tax-residency (Andorre Fiscal), up to date as of 11 October 2026. To cite this page, use its address: https://andorrefiscal.fr/en/tax/leaving-france-tax-residency

Moving to Andorra is not enough to stop being taxable in France: you must no longer meet any of the criteria of French tax domicile. The year of departure follows precise filing rules, and the French exit tax may apply to holders of substantial financial assets. Here are the steps, in order.

By [the Andorre Fiscal editorial team](https://andorrefiscal.fr/en/about#redaction) · Verified on 11 October 2026 · [9 official sources](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency#sources)

- **1 criterion** of French domicile is enough to remain taxable
- **€800,000** of securities: the exit tax applies above this threshold
- **6 years out of 10** of domicile in France for the exit tax
- **90 days** before departure to request the deferral

## Key points

- You only cease to be domiciled in France for tax purposes if your home, your professional activity and the centre of your economic interests are no longer there.
- In the year after departure, you declare your income from 1 January to the date of departure, then your French-source income up to 31 December.
- The exit tax targets people domiciled in France for at least 6 of the last 10 years who hold at least 50% of the profits of a company or more than €800,000 of securities.
- In the official notes published in 2026, Andorra is not among the States that give entitlement to automatic deferral: it must be requested no later than 90 days before departure, with guarantees.
- Rents and capital gains from French property, public pensions and salaries for work carried out in France remain taxable in France.

## Becoming a non-resident for French tax purposes: the criteria of Article 4 B

A move to Andorra only has a tax effect if you no longer meet **any** of the three criteria of Article 4 B of the French General Tax Code. Just one is enough for you to remain [domiciled for tax purposes](https://andorrefiscal.fr/en/glossary#domicile-fiscal) in France and to be taxed there on your worldwide income:

- your **home** or your principal place of stay: a family that has stayed in France, for example;
- a **professional activity** carried on in France, unless it is ancillary there;
- the **centre of your economic interests**: main investments, seat of your business, main source of your income.

The directors of companies whose registered office is in France and whose turnover exceeds €250 million are also considered, unless proven otherwise, to carry on their main activity in France. If France and Andorra both consider you a resident, the tax treaty decides, first according to your permanent home; since 16 February 2025, Article 4 B has expressly provided that you are not domiciled in France if the treaty designates you as a resident of Andorra. You still need to be able to [prove your Andorran tax residency](https://andorrefiscal.fr/en/tax/tax-residency#preuves). On the Andorran side, you will also need a residence authorisation: see how to [obtain a residence permit in Andorra](https://andorrefiscal.fr/en/residency/application-process).

## Tax return for the year of departure: forms 2042 and 2042-NR

In France, the year of departure is declared in two parts, before and after the date of departure. The procedure, according to the French tax authorities:

1. Report your new address

   From your Finances publiques online account, to your last public finance office. Also inform your employer and your pension funds if you still receive salaries or pensions, as the way they are taxed may change.
2. The following year, declare the income for the year of departure

   On return No. 2042, the income received from 1 January to the date of departure; foreign-source income for that period goes on form No. 2047.
3. Add the French-source income received after departure

   On return No. 2042-NR, only the French-source income taxable in France, from the date of departure to 31 December.
4. Then come under the non-residents’ tax office

   Once this return has been processed, the tax office for non-resident individuals handles your file if you keep taxable French income, as well as any tax on real estate wealth you may owe. Local taxes remain handled by the tax office where the property is located.

Two practical tips from the tax authorities: create your online account before you leave, and keep a bank account held in France or in the SEPA area so that you can pay online. On the Andorran side, your first income is declared from 1 April to 30 September of the following year: see [filing a tax return in Andorra](https://andorrefiscal.fr/en/tax/andorra-income-tax#declaration).

## Exit tax and Andorra: who is affected (€800,000 or 50%)?

You are affected by the [exit tax](https://andorrefiscal.fr/en/glossary#exit-tax) (Article 167 bis of the French General Tax Code) if two conditions are met:

- you have been domiciled in France for tax purposes for at least **6 of the 10 years** preceding departure;
- together with your tax household, you hold, on the date of departure, at least **50% of the profits** of a company, or a securities portfolio with a total value of more than **€800,000**.

It then taxes, at the time of departure, the unrealised gains on your securities, as if you were selling them: shares, holdings in companies, bonds and fund units, as well as earn-out receivables and capital gains placed under tax deferral. Securities held in a PEA or a PEA-PME (French equity savings plans) are excluded, as are shares in property-rich companies subject to a special regime.

> Taxpayers domiciled in France for tax purposes for at least six of the ten years preceding the transfer of their tax domicile outside France are taxable, at the time of this transfer, on the unrealised capital gains recorded on corporate rights, securities, instruments or rights […].
>
> — [French General Tax Code, Article 167 bis, I, 1 (extract; free translation)](https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000025842404/2026-10-10)

### Calculation, rates in 2026 and cancellation after 2 or 5 years

Each unrealised gain is the difference between the value of the securities on the day of departure and their acquisition price or value. For listed securities, the value used is the last known price or the average of the last 30 prices; for unlisted securities, their market value must be estimated. The gain is then taxed like a sale:

- **income taxflat rate**: 12.8%
- **social leviesdeparture in 2026; 17.2% for a departure in 2025**: 18.6%
- **in totaldeparture in 2026**: 31.4%

An option for the progressive scale is possible; it then covers all the household’s income from movable capital and capital gains for the year of departure. Return No. 2074-ETD exists only in paper form. The tax is then cancelled or refunded if you keep the securities for **2 years** after departure (total value of less than €2.57 million at departure) or **5 years** (above that), or if you return to France while still holding them.

## Payment deferral is not automatic for Andorra

For a move to Andorra, the payment deferral must be requested: the official notes published in 2026, for departures in 2025, list the States that give automatic entitlement to it, and **Andorra is not on that list**.

This deferral postpones payment of the exit tax until a triggering event, the sale of the securities for example. It is automatic for a move to a European Union State, or to a State that is bound to France by an administrative assistance agreement and a recovery assistance agreement and is not [non-cooperative](https://andorrefiscal.fr/en/tax/is-andorra-a-tax-haven#france). In other cases, the request involves three steps:

- file return No. 2074-ETD with the tax office for non-resident individuals **no later than 90 days before departure**;
- appoint a **tax representative** established in France;
- offer **guarantees** capable of securing recovery: for income tax, 12.8% of the amount of the gains and receivables.

Without deferral, the tax is payable immediately, then cancelled or refunded under the conditions seen above (securities kept for 2 or 5 years, or return to France). Conversely, a sale, buy-back or cancellation of the securities ends the deferral. If these securities are those of your company, see also how to [relocate your company to Andorra](https://andorrefiscal.fr/en/business/moving-your-business-from-france#exit-tax).

> **Caution: Check the notes for the year of your departure**
>
> The list of States giving entitlement to automatic deferral may change, and amendments on the exit tax are being discussed during the examination of the Finance Bill for 2027. Consult the most recent 2074-ETD notes and get support from a professional well before your planned departure date.

## What remains taxable in France

Even once you are a resident of Andorra, some French-source income remains taxable in France, under the [France–Andorra tax treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty):

**French-source income after departure**

| Income | Taxed in France? |
| --- | --- |
| Rents from a property located in France<br>Article 6 | Yes |
| Capital gain on the sale of a property located in France<br>Article 13 | Yes including on shares in property-rich companies |
| Civil service pension<br>Article 18 | Yes except for an Andorran national without French nationality |
| Private-sector retirement pension<br>Article 17 | No in principle, subject to Article 25, to be examined |
| Salary for work carried out in France<br>Article 14 | Yes except for short stays paid by a non-resident employer |
| Directors’ fees from a French company<br>Article 15 | Yes |
| Dividends from French companies<br>Article 10 | Withholding tax capped at 15% for an individual |
| Interest<br>Article 11 | Withholding capped at 5%, or even nil in some cases |
| Capital gain on a holding of 25% or more in a French company<br>Article 13 | Yes |

Summary of the France–Andorra treaty. Andorra deducts the French tax from its own tax, up to the amount of the Andorran tax.

This income is declared each year in France on the non-residents’ return. Unless you opt for the average rate, the tax is calculated at the minimum rate of 20% up to €29,579 of net taxable income (2025 income), then 30% above that; the average rate, calculated on your worldwide income, applies only if it is more favourable to you.

Two other taxes may remain payable in France: the tax on real estate wealth (IFI), if your net French real estate assets exceed €1,300,000, and inheritance tax, on assets located in France and on everything received by an heir who has been domiciled in France for at least 6 of the last 10 years: see our guide [France–Andorra inheritance](https://andorrefiscal.fr/en/tax/inheritance-tax-france-andorra). What happens to your [French investments after departure](https://andorrefiscal.fr/en/tax/dividends-capital-gains#hors-andorre) is set out in our guide to dividends and capital gains.

## The departure timetable, from D-6 months to Y+1

Before departure, only one deadline is set by the texts: the request for deferral of payment of the exit tax, no later than 90 days before departure. The income tax returns then follow, the year after, in France and then in Andorra:

Timetable for a move to Andorra

1. D-6 months

   Prepare

   Check which criteria of Article 4 B would still link you to France, choose your Andorran residency status and put together your application: timescales are detailed in our guide to [residency procedures and timescales](https://andorrefiscal.fr/en/residency/application-process).
2. D-90 days at the latest

   Exit tax

   If you are affected and want a payment deferral: file return No. 2074-ETD, appoint a tax representative in France and offer guarantees.
3. Before departure

   Practical steps

   Create your Finances publiques online account, keep a bank account in France or in the SEPA area, inform your bank, your employer and your pension funds.
4. D-day

   Departure

   Report your new address to your last public finance office from your online account, and start counting your days of presence in Andorra.
5. Year Y+1

   French tax return

   Declare the income for the year of departure: form 2042 (with form 2047) up to the date of departure, form 2042-NR for French-source income received afterwards.
6. 1 April – 30 September Y+1

   Andorran tax return

   File your first income tax return in Andorra, or accept the proposed adjustment if you received only salaries.

Y: year of departure. The milestones “D-6 months”, “Before departure” and “D-day” are indicative; the other dates follow from the texts and the 2074-ETD notes.

## Checklist: leaving France for Andorra, step by step

- Check that you will no longer meet any criterion of Article 4 B: home, professional activity, economic interests.
- Obtain your Andorran residence authorisation and your housing, then organise the move of your household.
- Decide what happens to your French business: sale, transfer or keeping it as an ancillary activity.
- Assess the exit tax and, if necessary, file the deferral request at least 90 days before departure.
- Report your new address to the tax authorities, your employer, your pension funds and your bank.
- Create your Finances publiques online account and keep a bank account in the SEPA area.
- List the income that will remain taxable in France: rents, public pensions, salaries for work in France.
- Count your days of presence in Andorra and keep the supporting documents, year after year.
- The following year: file in France on forms 2042, 2047 and 2042-NR, and in Andorra between 1 April and 30 September.

For the transfer of a business, see the full guide to [relocating your business from France](https://andorrefiscal.fr/en/business/moving-your-business-from-france). To keep track of your days of presence from the moment you arrive:

## Common mistakes

> **Common mistake**
>
> “Obtaining an Andorran residence permit is enough to leave France for tax purposes.”
>
> **In fact.** The permit governs the right of residence, not [tax residency](https://andorrefiscal.fr/en/tax/tax-residency#permis). As long as your home, your main activity or the centre of your economic interests remain in France, you remain taxable there on your worldwide income; and under the treaty, a residence permit is not enough to make you a resident of Andorra.

> **Common mistake**
>
> “I can carry on running my French company from Andorra without any consequences.”
>
> **In fact.** A professional activity carried on in France that is not ancillary keeps your French tax domicile. Even once you have become a resident of Andorra, pay for work carried out in France and directors’ fees from a French company remain taxable in France.

> **Common mistake**
>
> “The exit tax only affects the very wealthy.”
>
> **In fact.** The threshold is a securities portfolio worth more than €800,000, or at least 50% of the profits of a company, whatever its value. An entrepreneur who owns their company, even a modest one, may therefore be affected.

## Frequently asked questions

### Do you need to tell the tax authorities that you are moving to Andorra?

Yes. Report your new address to your public finance office from your online account, and inform your employer and your pension funds. The following year, you declare the income for the year of departure; the tax office for non-resident individuals then takes over if you keep French income that is taxable in France.

### Which forms do you fill in the year after departure?

Return No. 2042 for income received from 1 January to the date of departure, with form No. 2047 for foreign-source income for that period, and return No. 2042-NR for French-source income received after departure, up to 31 December.

### Does the exit tax apply to a move to Andorra?

Yes, if you were domiciled in France for at least 6 of the 10 years preceding departure and you hold at least 50% of the profits of a company or more than €800,000 of securities. In the official notes published in 2026, Andorra is not among the States that give entitlement to automatic deferral: the deferral must be requested no later than 90 days before departure, with a tax representative and guarantees.

### How do you declare yourself a non-resident for tax purposes in France?

No declaration is enough: you become a non-resident when you no longer meet any criterion of Article 4 B (home, main activity, centre of economic interests), or when the tax treaty designates you as a resident of Andorra, which Article 4 B has expressly provided for since February 2025. The formalities follow: report your new address, then, the following year, declare the income for the year of departure on forms 2042 and 2042-NR.

[Read: Becoming a non-resident for French tax purposes: the criteria of Article 4 B](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency#domicile)

### What happens if I return to France?

You become taxable in France on your worldwide income again as soon as you once more meet a criterion of Article 4 B there, subject to the treaty if you also remain a resident of Andorra. For the exit tax, returning to France leads to the cancellation or refund of the tax relating to the securities you still hold.

[Read: Exit tax and Andorra: who is affected (€800,000 or 50%)?](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency#exit-tax)

### Do you need to close your PEA or your life insurance before leaving?

The tax authorities do not give a list: they advise you to inform your bank of your change of address, and the bank will tell you whether any accounts or products must be closed. Securities held in a PEA or a PEA-PME are excluded from the exit tax. Once you are an Andorran resident, the gains on a French life insurance policy go into the Andorran savings tax base; before leaving, have the French consequences of each product checked.

[Read: Dividends and capital gains › Investments and assets kept in France, passing on wealth](https://andorrefiscal.fr/en/tax/dividends-capital-gains#hors-andorre)

### How are rents from a flat kept after departure taxed in France?

They remain taxable in France, under [the treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty#immobilier), and are declared on the non-residents’ return. Unless you opt for the average rate, the tax is calculated at the minimum rate of 20% up to €29,579 of net taxable income (2025 income), then 30% above that.

### Do you need to keep a bank account in France?

The tax authorities state that a bank account held in France or in the SEPA area allows you to pay your French taxes online. Remember also to inform your bank of your change of address.

### When do you declare your first income in Andorra?

From 1 April to 30 September of the year following the year you moved: the calendar and the forms are detailed in our guide to income tax.

[Read: Income tax (IRPF) › Tax returns in Andorra: when and how to file?](https://andorrefiscal.fr/en/tax/andorra-income-tax#declaration)

## Sources

1. [impots.gouv.fr: “I am moving abroad: what formalities do I need to complete?”](https://www.impots.gouv.fr/particulier/questions/je-pars-vivre-letranger-quelles-demarches-dois-je-accomplir-dois-je-cloturer) — Change of address, returns 2042, 2047 and 2042-NR, non-residents’ tax office.
2. [impots.gouv.fr: notes to return 2074-ETD (2026 edition, departures in 2025)](https://www.impots.gouv.fr/sites/default/files/formulaires/2074-etd/2026/2074-etd_5518.pdf) — Exit tax conditions, rates, list of States giving entitlement to automatic deferral, deferral on request, cancellation of the tax.
3. [impots.gouv.fr: “I am leaving France: am I affected by the exit tax?”](https://www.impots.gouv.fr/portail/particulier/questions/je-quitte-la-france-suis-je-concerne-par-lexit-tax) — Thresholds of 50% and €800,000, return 2074-ETD, 90-day deadline.
4. [French General Tax Code, Article 4 B (Légifrance)](https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000041464195/2026-10-10) — The three criteria of French tax domicile and, since 16 February 2025, the primacy of residence within the meaning of tax treaties (Law No. 2025-127, Article 83).
5. [Govern d’Andorra: practical guide to IRPF (2025 tax year)](https://www.govern.ad/documents/d/guest/guia_irpf) — Andorran tax return from 1 April to 30 September of the following year.
6. [impots.gouv.fr: “I am a non-resident. Do I have to declare income and pay tax in France?”](https://www.impots.gouv.fr/international-particulier/dois-je-declarer-mes-revenus-en-france) — French-source income, minimum rates of 20% and 30%, option for the average rate.
7. [France–Andorra tax treaty, consolidated version (impots.gouv.fr)](https://www.impots.gouv.fr/sites/default/files/media/10_conventions/andorre/version-consolidee-de-la-convention-avec-andorre-modifiee-par-la-convention-multilaterale.pdf) — Allocation of the right to tax French-source income.
8. [Service-public.gouv.fr: tax on real estate wealth (IFI)](https://www.service-public.gouv.fr/particuliers/vosdroits/F563) — IFI for non-residents on their real estate located in France.
9. [French General Tax Code, Article 750 ter (Légifrance)](https://www.legifrance.gouv.fr/codes/id/LEGISCTA000006197407/) — Inheritance tax: assets located in France, heirs domiciled in France.

Consolidated texts on the Portal jurídic d’Andorra have no official value: only the version published in the BOPA is authentic. [How we verify](https://andorrefiscal.fr/en/methodology).

**General information, not advice.** This guide sets out the rules in force on 11 October 2026, based on official texts. It is no substitute for a professional review of your situation (lawyer, tax adviser, gestoria). Spotted an error or a change? [Write to us](https://andorrefiscal.fr/en/contact).

## Further reading

- [Tax residency](https://andorrefiscal.fr/en/tax/tax-residency): 183 days, centre of interests, dual residency
- [France–Andorra tax treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty): Who taxes what, since 2013
- [Relocating your company](https://andorrefiscal.fr/en/business/moving-your-business-from-france): From France: steps and risks
- [Procedures and timescales](https://andorrefiscal.fr/en/residency/application-process): From application to residence card
- [Dividends and capital gains](https://andorrefiscal.fr/en/tax/dividends-capital-gains): Savings, shares, property
- [Entrepreneur, company director](https://andorrefiscal.fr/en/profiles/entrepreneur): Setting up or relocating a company