France-Spain Double Taxation Treaty — Guide for French Expats in Spain

Understanding the France-Spain Double Taxation Treaty

The Convention entre la France et l’Espagne en vue d’éviter les doubles impositions — signed in 1995 and updated through subsequent protocols — governs how income and assets are taxed when you have connections to both countries. For the growing number of French nationals living in Spain, understanding this treaty is essential to avoid paying tax twice and to ensure full compliance with both jurisdictions.

Pension Taxation — Which Country Taxes What?

This is the single most important question for French retirees in Spain, and the answer depends on the type of pension:

• French government/civil service pensions: Under Article 19 of the treaty, these remain taxable exclusively in France. If you worked for the French state, regional government, or public institutions, your pension is taxed at source in France regardless of where you live
• Private sector pensions (retraite complémentaire AGIRC-ARRCO, company pensions): These are taxable in your country of residence. If you are a Spanish tax resident, you must declare this income on your Spanish IRPF return
• French state basic pension (retraite de base from CNAV): This is treated as a social security pension and is generally taxable in Spain as your country of residence

The distinction between government pensions and social security/private pensions catches many French expats off guard. Professional tax advice before you move is strongly recommended.

Rental Income on Property

If you retain property in France and rent it out after moving to Spain:

• The rental income is taxable in France under French rules (including the micro-foncier or régime réel system)
• As a Spanish tax resident, you must also declare this income in Spain on your IRPF return
• Spain will grant a credit for the French tax paid, eliminating double taxation — but the administrative burden of filing in both countries remains

Conversely, if you own property in Spain and rent it out, the income is taxable in Spain. French tax authorities must be notified if you remain a French tax resident during any transitional period.

Capital Gains on Property Sales

Under the treaty, capital gains from the sale of immovable property are taxable in the country where the property is located:

• Sell a property in France → taxed in France (at up to 36.2% including social charges, with tapering relief after 5 years of ownership)
• Sell a property in Spain → taxed in Spain (at 19-28% for residents, depending on the gain amount)

Under Spanish law, non-residents selling Spanish property face a 3% retention at source. As a Spanish tax resident selling French property, you should coordinate filing in both countries to claim treaty relief.

Wealth Tax — IFI vs Spanish Patrimonio

Both France and Spain impose wealth taxes, but they work quite differently:

Feature	France (IFI)	Spain (Patrimonio)
Scope	Real estate assets only	All worldwide assets (for residents)
Threshold	€1,300,000 net real estate	€700,000 (plus €300,000 primary residence exemption)
Rates	0.5% to 1.5%	0.2% to 3.5% (varies by autonomous community)
Who pays	French tax residents on worldwide real estate; non-residents on French property	Spanish tax residents on worldwide assets; non-residents on Spanish assets only

A critical point: if you move to Spain, you escape IFI on your French real estate (unless you retain French tax residency), but you become liable for Impuesto sobre el Patrimonio on your entire worldwide net worth — including bank accounts, investments, and property. Spain also introduced the Impuesto Temporal de Solidaridad de las Grandes Fortunas for high-net-worth individuals, which applies nationally regardless of regional exemptions.

Modelo 720 — Declaring Overseas Assets

Spanish tax residents with assets outside Spain exceeding €50,000 in any of three categories (bank accounts, investments, or real estate) must file the Modelo 720 informative declaration. This is not a tax form — it is a reporting obligation. For French expats who retain bank accounts, life insurance (assurance vie), or property in France, this is almost always applicable.

While the European Court of Justice struck down Spain’s disproportionate penalties for late Modelo 720 filing in 2022, the reporting obligation itself remains in force. Failure to file can still result in fines, and undeclared assets may be treated as unjustified capital gains.

IRPF Brackets vs French Barème — A Quick Comparison

For 2026, the effective tax rates compare as follows:

• Spain (IRPF): 19% (up to €12,450), 24% (€12,450–€20,200), 30% (€20,200–€35,200), 37% (€35,200–€60,000), 45% (€60,000–€300,000), 47% (above €300,000)
• France (barème): 0% (up to €11,294), 11% (€11,294–€28,797), 30% (€28,797–€82,341), 41% (€82,341–€177,106), 45% (above €177,106)

France’s quotient familial system and various deductions mean direct bracket comparison is misleading. In practice, a single retiree on a modest pension may pay slightly more in Spain, while a high earner with family may pay less in France. Individual analysis is essential.

Disclaimer: This article provides general information and does not constitute legal or tax advice. Spanish tax law and international treaties are subject to change. For advice tailored to your individual circumstances, please consult a qualified legal professional.

For a complete overview of taxation in Spain, see our Your Guide to Spanish Tax.