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 primary right to tax your rental income under Article 6. You must 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 would also be assessable in Thailand if remitted in the same calendar year, but Thailand must grant a credit for French tax paid. Conversely, if you own property 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.

Article 18 states that pensions paid in consideration of past employment (private sector pensions) are taxable only in the country of residence of the recipient.

This means:

• If you live in Thailand and receive a pension from AGIRC-ARRCO, a company pension fund, or any other private-sector retirement scheme, Thailand has the exclusive right to tax this income
• France should not withhold tax on these payments (though you may need to provide a certificate of residence to stop automatic withholding)
• You must declare this income on your Thai tax return and pay Thai income tax, benefiting from Thai deductions and the progressive rate structure

For many retirees, this results in a lower overall tax burden compared to remaining in France, especially after applying the personal allowance (60,000 THB), the over-65 exemption (190,000 THB), and the earned income deduction.

Our pension and retirement services team can help you set up the correct declarations in both countries to ensure your private pension is taxed only in Thailand as the treaty intends.

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. For example, a teacher who spent part of their career in the French public education system and part in the private sector might receive both a government pension and an AGIRC-ARRCO pension. Each component is treated separately under the treaty:

• The government pension portion: taxable only in France (Article 19)
• The private pension portion: taxable only in Thailand (Article 18)

Proper allocation between the two is essential and should be documented clearly in your tax filings in both countries.

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

Knowing the treaty provisions is only half the battle. You must actively claim treaty benefits in both countries. Here is the process:

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 for this.

Step 2: Notify France of Your Tax Residence Change

If you have recently moved to Thailand, file a declaration of departure with your French tax office (Centre des Finances Publiques). Update your status to non-resident. This changes how France taxes your French-source income.

Step 3: Submit Form 5000 to France

Complete and submit Form 5000 (Attestation de Residence Fiscale) to the French tax administration. This form, certified by the Thai Revenue Department, proves your Thai tax residence and triggers the application of treaty withholding rates on French-source income.

Step 4: File Your Thai Tax Return

File Form PND 90 or PND 91 with the Thai Revenue Department by March 31, declaring all assessable foreign income remitted to Thailand. Claim all applicable deductions and allowances.

Step 5: Claim Foreign Tax Credits

On your Thai return, claim a credit for any taxes already withheld or paid in France on income that is also taxable in Thailand (such as dividends where both countries have taxing rights). Attach documentation of the French tax paid.

Step 6: File Your French Non-Resident Return

Even as a non-resident, you must file a French tax return (Form 2042-NR) declaring any income that France retains the right to tax under the treaty (government pensions, real estate income, etc.). Claim the treaty exemption for income exclusively taxable in Thailand.

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.

Confusing Article 18 and Article 19. Misclassifying a government pension as a private pension (or vice versa) leads to paying tax in the wrong country. Review your pension statements carefully.

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.