France: Retroactive application of exit tax incompatible with EU law (Supreme Administrative Court decision)

The decision is final and cannot be appealed.

The Supreme Administrative Court (Conseil d'脡tat) on February 5, 2025, held that the retroactive application of exit tax to individuals who transferred their residence out of France before May 11, 2011, was incompatible with EU law.

The exit tax was introduced through an amending finance law presented by the government on May 11, 2011, and formally adopted on July 29, 2011. However, the law applied retroactively to transfers of residence dating back to March 3, 2011鈥攖he date when the Budget Minister publicly mentioned the possibility of reintroducing an exit tax.

The court held that the Budget Minister鈥檚 remarks on March 3, 2011, were speculative and did not constitute an official announcement. In the court鈥檚 view, the first formal indication of the exit tax鈥檚 introduction was on May 11, 2011, when Parliamentary discussions on the amending finance bill began.

The decision is final and cannot be appealed.

Read a聽March 2025 report聽prepared by 乐鱼（Leyu）体育官网鈥檚 EU Tax Centre

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