Undeclared Foreign Accounts
Area of Expertise

Undeclared Foreign
Accounts

Notes and reservations — 2026 update :

Reporting obligations extend to foreign bank accounts (Art. 1649 A CGI), capitalisation and life-insurance contracts taken out outside France (Art. 1649 AA CGI) and foreign digital-asset accounts (Art. 1649 bis C CGI); they apply even where there is no income, no movement and no significant balance.

regularization

Regularize Your Situation
in the Best Conditions

French tax residents are legally required to declare to the tax authorities accounts opened, held, used or closed abroad (article 1649 A CGI, Form 3916), capitalisation contracts or investments of a similar nature subscribed outside France (article 1649 AA CGI, Form 3916-bis), and trusts (article 1649 AB CGI, Forms TRUST1/TRUST2). Each category is subject to a distinct reporting regime. These obligations, often overlooked, apply to all French tax residents regardless of the amount of assets concerned.

The Firm of Me Jonathan Sémon assists individuals and businesses in regularizing these situations — with method, discretion, and under conditions designed to minimize applicable penalties as much as possible.

Reporting Obligations

Article 1649 A of the CGI (Form 3916): Individuals, associations, and non-commercial entities domiciled or established in France must declare, together with their income tax return, details of accounts opened, held, used, or closed abroad. This obligation applies regardless of account balance or dormancy status.

Article 1649 AA of the CGI (Form 3916-bis): Capitalisation contracts or investments of a similar nature subscribed outside France must be declared on the income tax return by the policyholder or beneficiary residing in France. This reporting regime is distinct from and applies separately to account declarations under article 1649 A.

Article 1649 AB of the CGI (Forms TRUST1/TRUST2): Trusts, fiducies, or equivalent legal arrangements are subject to dedicated trust reporting provisions. The reporting obligations apply to the settlor (constituant) and beneficiaries (bénéficiaires) who are domiciled in France. The position of the trustee or administrator is governed by distinct provisions and should not be conflated with the general criterion for settlors and beneficiaries. Trusts are subject to a separate and more detailed reporting regime than accounts under article 1649 A.

Applicable Penalties

Penalties for undeclared accounts (Article 1649 A):
— 1,500 € per undeclared account per year of non-declaration
— 10,000 € when the account is located in a State or territory that has not concluded with France an administrative-assistance convention allowing access to banking information
These fines are in addition to tax reassessments on undeclared income, increased by late interest and any applicable surcharges.
Art. 1736 IV CGI

Distinct penalty regimes apply to capitalisation contracts and to trusts: Undeclared capitalisation contracts or investments of a similar nature subscribed outside France (article 1649 AA) are subject to a specific penalty under article 1766 of the CGI. Undeclared trusts (article 1649 AB) are subject, under Article 1736 IV bis CGI, to a penalty of 20,000 € or, where higher, 12.5% of the assets, rights and capitalised income placed in the trust. These regimes differ substantially from the account penalties under article 1649 A and must not be confused with the 1,500 € / 10,000 € figures above.

Regularization Process

01
Risk Exposure Analysis
Identification of relevant accounts (opened, held, used or closed abroad), capitalisation contracts or investments of a similar nature subscribed outside France, trusts or equivalent arrangements, and digital-asset accounts. Assessment of non-statute-barred years, assets and corresponding undeclared income.
02
File Preparation
Collection of bank statements, supporting documents and proof of origin of assets. Calculation of taxes due and reducible penalties.
03
Dialogue with Tax Authority
Presentation of the case to the competent tax authority according to the procedure adapted to your situation. Negotiation of penalties within the applicable legal framework.
04
Final Regularization
Filing amended returns, payment of amounts due under the agreement reached. Ensuring future returns are compliant.

Why voluntarily regularize? Voluntary regularization—before any tax authority request—generally allows for more favorable conditions than would result from a tax audit. The Firm helps you navigate this procedure methodically.

Analyse confidentielle

The initial consultation allows you to assess your situation and available regularization options.

450 €In-office · 1h
360 €Video call · 1h
Book a consultation
📍 7 rue Chateaubriand, 75008 Paris
📞 01 87 44 29 51
✉ contact@avocat-fiscal-semon.com
Key Takeaway

Automatic exchange of financial information between countries (CRS/OECD) is now effective for more than 100 countries. Tax authorities have access to information. Spontaneous regularization is the least costly solution.

Resources

Related articles

Frequently Asked Questions

Questions sur ce domain

Yes, if you are a French tax resident. Article 1649 A of the CGI requires all individuals domiciled in France to declare accounts opened, held, used or closed abroad, together with their income tax return. This obligation applies regardless of the amount of assets.
For undeclared accounts (art. 1649 A): The penalty is 1,500 € per account per undeclared year, increased to 10,000 € when the account is located in a State or territory that has not concluded with France an administrative-assistance treaty aimed at combating tax fraud and evasion and allowing access to banking information (article 1736 IV of the CGI). For capitalisation contracts or investments of a similar nature subscribed outside France and for trusts: Distinct penalty regimes apply. Under article 1736 IV bis CGI, undeclared trusts trigger a penalty of 20,000 € or, where higher, 12.5% of the assets, rights and capitalised income placed in the trust. All penalties are in addition to tax reassessments on undeclared income and applicable surcharges.
The OECD's Common Reporting Standard (CRS) established automatic exchange of financial information between more than 100 partner countries, including France, most EU countries, Switzerland, Gulf countries (including UAE) and many offshore territories. European tax authorities regularly receive information about accounts held by their residents abroad.
Yes. Regularization remains possible as long as the statute of limitations has not expired. The standard limitation period is 3 years (art. L. 169 LPF), but it may be extended to ten years where the taxpayer has failed to comply with the international reporting obligations under articles 1649 A (foreign bank accounts), 1649 AA (foreign capitalisation contracts) or 1649 AB (foreign trusts) of the CGI. For foreign bank accounts (art. 1649 A), this 10-year extension applies only if the aggregate credit balance of the undeclared foreign accounts has exceeded 50,000 € at any time during the relevant year (LPF, art. L. 169 § 5; BOFiP BOI-CF-PGR-10-50); below this threshold, the ordinary 3-year statute applies. The extension is also limited to income and profits relating to the unfulfilled reporting obligations. The Firm analyses which years can be regularised in your situation.
The tax authority can assess back taxes under the standard 3-year limitation period, possibly extended to ten years where the taxpayer has failed to comply with the foreign-asset reporting obligations of articles 1649 A, 1649 AA or 1649 AB CGI — the 10-year extension being subject, for foreign bank accounts, to the aggregate credit balance having exceeded 50,000 € at any time during the year (LPF, art. L. 169 § 5 in fine) — if undeclared accounts are discovered. Penalties escalate: forty percent surcharge for deliberate failure (manquement délibéré, article 1729 a CGI), eighty percent for fraudulent conduct (manœuvres frauduleuses, article 1729 c CGI), and potential criminal prosecution for deliberate concealment. Collection of undeclared income, interest, and penalties can be substantial. Professional representation is essential to mitigate exposure.
Regularisation through spontaneous disclosure requires filing amended returns for all non-statute-barred years (three years under the ordinary limitation period — possibly extended to ten years where the international reporting obligations under articles 1649 A, 1649 AA, 1649 AB CGI have not been met, the 10-year extension being subject for foreign bank accounts to the aggregate credit balance having exceeded 50,000 € at any time during the year — LPF, art. L. 169 § 5), declaring all foreign accounts and assets, and paying back taxes with interest. Penalties depend on the applicable legal basis and the facts of the case; they are not automatically fixed at a single rate. Disclosure must precede any tax authority notice. Professional guidance is critical to navigate this process and minimize exposure.
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tax situation

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Phone
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Email
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