France-Thailand Tax Treaty: Article-by-Article Guide

Overview of the France-Thailand Tax Treaty

The Convention between the Government of the French Republic and the Government of the Kingdom of Thailand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income was signed on December 27, 1974. It entered into force in 1975 and remains the governing document today, with no subsequent amendments or protocols.

This treaty is the single most important legal instrument for any French national living in Thailand who earns income from French sources. It determines which country has the right to tax each type of income, preventing the same euro from being taxed in both Paris and Bangkok.

Since the 2024 changes to Thai tax law on foreign income, understanding this treaty has become more critical than ever. Foreign income remitted to Thailand is now assessable for tax residents, but the treaty overrides domestic law where it allocates exclusive taxing rights to one country.

Summary Table of Key Articles

Article 6: Real Estate Income

Article 6 establishes that income from immovable property (real estate) is taxable in the country where the property is situated. This applies to:

• Rental income from apartments, houses, or commercial property
• Income from agriculture or forestry
• Income from any direct use of immovable property

Practical impact: If you own a rental apartment in Paris and live in Thailand, France has the exclusive right to tax your rental income under Article 6. You declare this income in your French tax return and pay French income tax on it.

Under the new 2024 Thai tax rules, this rental income is reported in your Thai filing for transparency, but Thailand grants an exemption under Article 23 §2 a) of the treaty (not a tax credit) since France holds exclusive taxing rights. Conversely, if you own property located in Thailand, Thailand has the exclusive taxing right.

Article 10: Dividends

Dividends receive shared taxing rights under Article 10, with specific caps on withholding:

• The country of residence (where you live) has the primary right to tax dividends
• The source country (where the company paying the dividend is based) can also withhold tax, but is limited to 15% of the gross dividend amount

Example: Marie lives in Thailand and receives 10,000 EUR in dividends from her French stock portfolio. France can withhold up to 15% (1,500 EUR) at source. Marie must also declare these dividends on her Thai tax return. Thailand will apply its progressive rates but must grant a credit for the 1,500 EUR already withheld by France.

How to Claim the Reduced Rate in France

To benefit from the treaty rate, you need to obtain a certificate of tax residence from the Thai Revenue Department and submit French Form 5000 (Attestation de Residence) to the relevant French tax office. Initiate this before the dividend payment date to avoid overpayment.

Article 11: Interest

Interest income follows a similar structure to dividends but with a lower withholding cap:

• The country of residence has the primary right to tax interest
• The source country can withhold up to 10% of the gross interest

This covers interest from bank deposits, bonds, government securities, and any other debt instruments. It does not cover interest that forms part of business profits taxed under Article 7.

Practical impact for retirees: If you maintain savings accounts or hold bonds in France while living in Thailand, French withholding on interest is capped at 10%. Thailand taxes the full amount at progressive rates but grants a credit for the French withholding.

Note that some French savings products (Livret A, LDDS) have specific tax-exempt regimes that interact with the treaty rules differently.

Article 13: Capital Gains

Article 13 distinguishes between gains from different asset types:

Real Estate Capital Gains

Capital gains from the sale of immovable property are taxable in the country where the property is located. This is an exclusive right.

If you sell your apartment in Lyon while living in Bangkok, France taxes the capital gain. Thailand does not tax it, even if the proceeds are remitted to Thailand. France applies a 19% flat tax on real estate capital gains for non-residents, plus 17.2% social charges. An exemption applies after 22 years of ownership for the income tax portion and 30 years for the social charges.

Securities and Other Movable Property

Capital gains from the sale of shares, bonds, and other movable property are generally taxable only in the country of residence. If you live in Thailand and sell French stocks at a profit, Thailand has the exclusive taxing right.

This can be advantageous for expats in Thailand, as Thai capital gains on securities may be taxed at lower rates or exempted entirely in certain conditions.

Article 15: Employment Income (Salaries)

Salaries and wages are taxable in the country where the employment is exercised -- that is, where the work is physically performed. There is an important exception known as the 183-day rule:

Employment income is taxable only in the country of residence if all three of the following conditions are met:

1. The employee is present in the other country for no more than 183 days during the fiscal year
2. The remuneration is paid by an employer who is not a resident of the other country
3. The remuneration is not borne by a permanent establishment of the employer in the other country

Example for remote workers: If you live in Thailand on a DTV visa and work remotely for a French company, the place of exercise is Thailand (where you physically perform the work). Thailand has the right to tax this salary. France generally should not tax it, though you may still need to inform the French tax authorities.

Article 18: Private Pensions

This is arguably the most important article for French retirees in Thailand. Important caveat: this treaty is atypical compared to the OECD model.

Article 18 §1 reads (official text): "Subject to the provisions of paragraph 1 of Article 19, income consisting of pensions or other similar remuneration in consideration of past employment, arising in a Contracting State and paid to a resident of the other Contracting State, shall be taxable in the first State."

In other words, this treaty allocates taxing rights on private pensions to the source state (the country paying the pension), not to the country of residence as in the OECD model.

For a French retiree residing in Thailand, this means:

• French private pensions (AGIRC-ARRCO, CNAV, company pension funds, CIPAV, SSI) remain taxable in France at the non-resident IR scale (with the standard 10% allowance on pension income)
• Thailand grants the exemption under Article 23 §2 a) of the treaty
• You declare the pension income in your Thai PND 91 return for transparency, attaching your French avis d'imposition as supporting evidence
• The Revenue Department accepts the French tax notice as primary proof of tax already paid abroad (a Thai translation may be requested)

This interpretation has been officially confirmed by the Embassy of France in Thailand in its communiqué of February 2026, following extensive consultations between French and Thai tax authorities.

Our pension and retirement services team can help you set up the correct declarations in both countries.

Article 19: Government Pensions

Article 19 creates a clear distinction from Article 18:

Pensions paid by a Contracting State (or a political subdivision or local authority thereof) for services rendered to that state are taxable only in the paying state.

In plain language: if you worked for the French government, a French public hospital, a French public university, or any other public entity, your pension is taxable only in France, regardless of where you live.

The exception: If the recipient is both a resident and a national of Thailand, the pension is taxable only in Thailand. Since most French retirees in Thailand hold French nationality rather than Thai nationality, this exception rarely applies.

Mixed Pensions

Many retirees have both public and private pension components. Under the France-Thailand treaty, the tax outcome is the same for both:

• The government pension portion: taxable only in France (Article 19)
• The private pension portion: also taxable in France (Article 18, atypical taxation at source)
• Both are exempt in Thailand under Article 23 §2 a)

The total French-source pension income of a retiree residing in Thailand is therefore taxed exclusively in France, applying the French non-resident IR scale with the standard 10% pension allowance. While the underlying treaty articles differ, the practical effect for the retiree is unified: file once in France, claim exemption once in Thailand.

Article 22: Other Income

Article 22 is the catch-all provision. Income not covered by any other article is taxable only in the country of residence.

This can include:

• Alimony or maintenance payments
• Lottery winnings or prizes
• Miscellaneous income that does not fit neatly into other categories

For most expats, the specific articles cover all major income types, and Article 22 serves as a safety net.

How to Avoid Double Taxation: Step-by-Step Process

For French retirees in Thailand, the dominant mechanism is exemption on the Thai side for income that France has the exclusive right to tax (Article 23 of the treaty). The treaty combines two mechanisms depending on income type:

• Exemption mechanism (Art. 23 §2 a) — for income France exclusively taxes: private pensions (Art. 18), government pensions (Art. 19), French real estate income (Art. 6), French real estate capital gains (Art. 13). Reported in Thai filing for transparency, exempted from Thai tax.
• Tax credit mechanism — for shared-taxation income: dividends (Art. 10, capped at 15% French withholding), interest (Art. 11, capped at 10%). Thailand grants a credit for the French withholding.

Step 1: Establish Your Tax Residence

Determine that you are a Thai tax resident (180+ days in Thailand). Obtain a Certificate of Tax Residence from the Thai Revenue Department. You will need your Thai TIN.

Step 2: Continue Filing in France

File annually with the SIPNR (non-resident tax office) using Form 2042-NR. Declare all French-source income, including private and public pensions — France retains the right to tax these. Apply the standard 10% pension allowance.

Step 3: File Your Thai Tax Return (PND 91)

Before March 31, file Form PND 91 with the Thai Revenue Department. Report your French income for transparency and invoke the treaty exemption under Article 23. Attach your French avis d'imposition as primary supporting evidence (Thai translation may be requested).

Step 4: Form 5000 — Use Selectively

Submit Form 5000 (Attestation de Residence Fiscale) to France only to claim treaty withholding caps on French dividends (5001 annex) and interest (5002 annex). For pensions, do NOT request withholding exemption — France retains the right to tax under Article 18 §1.

Step 5: Claim Foreign Tax Credits Where Applicable

For shared-taxation income (dividends, interest), claim the French withholding tax as a credit on your Thai return. Attach documentation of French tax paid.

Step 6: Keep Records for 7 Years

Retain French tax notices, international transfer documentation (FETF), the RO 22 certificate, and all correspondence with both tax authorities for at least 7 years.

Common Mistakes to Avoid

Failing to notify France of your departure. If you do not inform the French tax authorities that you have become a non-resident, France will continue to tax your worldwide income as if you still lived there.

Not filing in Thailand. Many expats assume that if they paid tax in France, they do not need to file in Thailand. The treaty allocates taxing rights, but you must actively claim those rights through proper filing in both countries.

Assuming Articles 18 and 19 lead to different countries. Many treaties allocate private pensions to the country of residence and public pensions to the source state, creating a real distinction. The France-Thailand treaty is atypical: both articles allocate taxing rights to France for French pensions. While the underlying classification differs, the practical filing outcome is the same — declare in France, claim exemption in Thailand.

Ignoring dividends and interest. The withholding caps (15% for dividends, 10% for interest) only apply if you actively claim them through Form 5000.

When to Seek Professional Help

The treaty is clear in many situations, but professional guidance is recommended when:

• You have income from multiple sources across both countries
• You are transitioning from French tax residence to Thai tax residence
• You own real estate in both countries
• You have mixed public/private pension components
• You receive stock options, RSUs, or other equity compensation
• You are planning your estate and succession across borders

Our pension and retirement advisory services include treaty analysis, filing coordination between French and Thai tax authorities, and ongoing compliance support to ensure you pay the right amount of tax in the right country -- and no more.