The answer is clear: any account considered foreign must be declared, under penalty of heavy penalties. This obligation applies in particular to neobanks located outside France. An account opened with one of these is therefore domiciled there; you must declare it to the French tax authorities when you file your 2025 tax return.
What is a foreign account?
The question seems basic, but it is becoming more complex as online banks gain ground. An account is considered foreign when it is opened with an institution located outside France, even if that institution operates in the European Union. The main criterion is based on the IBAN: if it begins with something other than "FR" (for example, "DE" for Germany or "LT" for Lithuania), the account is considered foreign. This particularly concerns:
- Revolut (IBAN in LT until mid-2022)
- N26 (IBAN in DE until 2023)
- Several other similar platforms
- Your PayPal account regularly uses it as a payment account
On the other hand, accounts with a French IBAN (such as those offered by Revolut since May 2022 or N26 since June 2023) do not require a declaration, as they are considered French. Article 1649 A of the General Tax Code requires any person domiciled for tax purposes in France to declare accounts opened, held, used, or closed abroad. This obligation applies even to accounts that are inactive or closed during the tax year in question. Failure to file a declaration may result in a fine of €1,500 per account, which can rise to €10,000 if the account is located in a country that has not signed an agreement with France against tax fraud.
How do I declare a foreign account?
The declaration is made using form no. 3916, available on the website impots.gouv.fr. Here are the steps to follow:
- Access your tax return and go to the Income and expenses step
- Check the Foreign accounts box in the Miscellaneous section
- Add a separate declaration for each account, specifying the type of account (current account, savings, etc.), the IBAN number or identifier, the opening and/or closing date, the full name and address of the institution, and the use of the account (personal, professional, or mixed).
- If you have already declared the account in previous years and its status has not changed, simply validate the existing information.
The case of PayPal
For PayPal, the declaration is mandatory if you keep an active balance there or if you use it as a bank account. However, an exception applies if the account is linked to another French account and the annual transactions do not exceed €10,000. Wise and other similar services follow similar rules: any active balance or regular use requires a declaration.
Mistakes to avoid
- Not declaring a closed account: even an account closed during the year must be mentioned
- Confusing daily use with tax location: a non-French IBAN remains subject to declaration, even if you use the account in France
- Forgetting platforms like PayPal: they are often perceived as payment tools rather than bank accounts
The declaration of foreign accounts is primarily intended to combat tax fraud and ensure complete transparency on the financial assets of French residents. The aim is not to directly tax the amounts transferred through these accounts, but rather to ensure their traceability.
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