Overview of Capital Movement in France
France operates under the principle of free movement of capital, allowing both residents and non-residents to transfer funds into and out of the country without a specific prior authorization from the central bank. As a member of the European Union and the Eurozone, France adheres to standardized EU financial regulations designed to prevent money laundering and the financing of terrorism while facilitating international investment.
While there are no restrictions on the amount of money that can be transferred, there are mandatory reporting requirements for certain thresholds. These rules apply to physical transfers of cash, bank wire transfers, and the possession of foreign bank accounts by French tax residents. Compliance is monitored by the Direction Générale des Douanes et Droits Indirects (DGDDI) and the financial intelligence unit, TRACFIN.
Physical Transport of Currency and Assets
Any individual entering or leaving France carrying cash, securities, or assets worth 10,000 EUR ($10,800 USD, Jan 2026) or more must file a declaration with the French Customs authorities. This rule applies regardless of whether the traveler is moving to or from another EU member state or a non-EU country.
The definition of "cash" includes:
- Banknotes and coins (in any currency).
- Bearer checks, traveler’s checks, and promissory notes.
- Gold (coins with at least 90% purity or bullion with at least 99.5% purity).
- Prepaid cards that are not nominative.
Declarations can be submitted online through the DALIA service at least two days before travel, or via a paper form at the border. Failure to declare these funds can lead to a fine equal to 50% of the undeclared amount and the potential seizure of the entire sum by customs officers.
International Bank Transfers and Monitoring
For electronic transfers (wire transfers) processed through banking institutions, the banks themselves handle the primary reporting obligations. Financial institutions are required to notify TRACFIN of any transactions that seem suspicious or exceed certain internal risk thresholds. For foreign investors, this means that banks may request "Source of Funds" (SoF) documentation for large transfers, typically those exceeding 150,000 EUR ($162,000 USD, Jan 2026).
Commonly requested documents include:
- Notarized deeds of sale (for real estate transactions).
- Inheritance tax returns or probate documents.
- Investment statements or dividends certificates.
- Loan agreements from recognized financial institutions.
Non-residents opening a French bank account to facilitate capital movement will be subject to "Know Your Customer" (KYC) procedures, which require proof of identity, proof of residence, and a declaration of the professional or economic purpose of the account.
Tax Reporting Requirements for Residents
Foreign nationals who become tax residents of France have specific obligations regarding their financial interests held abroad. According to Article 1649 A of the General Tax Code, residents must declare all bank accounts held, used, or closed outside of France during the tax year. This is done using Form No. 3916 (Déclaration par un résident d'un compte ouvert, détenu, utilisé ou clos à l'étranger) alongside the annual income tax return.
The reporting obligation covers:
- Standard checking and savings accounts.
- Digital asset (cryptocurrency) accounts and platforms.
- Life insurance policies held with foreign entities.
Penalties for failing to declare a foreign account generally amount to 1,500 EUR ($1,620 USD, Jan 2026) per account per year. If the account is located in a state that has not signed an administrative assistance agreement with France to combat tax evasion, the fine may increase to 10,000 EUR ($10,800 USD, Jan 2026).
Business Investments and FDI Rules
While capital moves freely for personal use, certain foreign direct investments (FDI) into French companies may be subject to prior authorization from the Ministry of the Economy. This typically applies if the investment is in a "sensitive" sector, such as national defense, energy, water, health, or artificial intelligence. For 2025/2026, the threshold for screening non-EU investors is generally set at the acquisition of 25% of voting rights in a sensitive French company (though this threshold is lowered to 10% for listed companies in specific strategic sectors).
For more details on investment screening, foreign nationals should consult the French Treasury website.
