France applies a dividend withholding tax (WHT) on payments to non-resident shareholders under domestic law. Although the process for reclaiming excess WHT is clearly defined by the French tax authorities (Direction Générale des Finances Publiques, DGFiP) it can be technically demanding. Non-residents investors such as individuals, pension funds, insurers, and collective investment vehicles (CIVs), must adhere to detailed procedural and documentation standards to recover excess withholding.

Understanding France's Dividend Withholding Tax Framework

Under Article 187(1) of the Code général des impôts (CGI), dividends paid by French companies to non-resident investors are subject to withholding tax at the time of payment and are managed by the DGFiP through its dedicated Non-Resident Tax Office (Service des impôts des entreprises étrangères – SIEE).

As of 2025, the standard French dividend WHT rates for non-residents are:

• 12.8% for foreign individual shareholders;

• 25% for foreign corporate shareholders, unless a lower rate applies under a double tax treaty (DTT).

These withholding tax rules apply to dividend distributions from French-resident companies made to recipients who have no tax residence or permanent establishment in France.

Non-resident investors may be eligible for relief at source or refund of excess French withholding tax if they can provide properly certified documentation proving their foreign tax residence and beneficial ownership of the dividends.

How double tax treaties reduce France’s dividend withholding tax

France has signed a wide network of DTTs with other countries to prevent double taxation and reduce WHT on dividends paid to non-resident investors. In fact, DTTs determine whether an investor can benefit from a lower WHT rate or obtain a refund of over-withheld tax from the French tax administration.

There are two main forms of treaty relief:

1. Relief at source

An exemption at source allows the French dividend payer to apply to reduced treaty rate directly when paying out the dividend. To qualify the non-resident investor must submit the following certified tax forms to the payer before the dividend payment date:

• Form 5000 – Certificate of Residence, and

• Form 5001 – Dividend Withholding Tax Reclaim Form.

Both must be stamped and signed by the investor’s home-country tax authority to confirm residency and beneficial ownership. Once accepted, the French payer applies the reduced treaty rate immediately, to avoid excess withholding.

2. Reclaim after payment

If the full domestic withholding rate has already been applied, investors can reclaim the excess tax from the French tax authorities. The process involves:

·       Obtaining a certificate of tax residence from the foreign investor’s tax authority using Form 5000;

·       Completing Form 5001 detailing the dividend income and the refund requested;

·       Submitting both forms and supporting documentation to the SIEE.

This reclaim mechanism allows investors to recover the difference between the domestic French rate and the treaty rate, provided that the reclaim is filed within the statutory deadline.

Eligibility and key conditions

The applicable treaty rate depends on the specific terms of the tax treaty the investor’s country of residence holds with France. Key eligibility criteria include:

1. Tax residence in a treaty partner country;

2. Beneficial ownership of the dividends;

3. Compliance with procedural requirements, including use of the correct forms and filing deadlines.

Understanding beneficial ownership for France WHT claims

For non-residents shareholders, demonstrating beneficial ownership is a critical requirement to qualify for reduced withholding tax rates under France’s domestic law and bilateral tax treaties. French authorities scrutinize claims closely to ensure that the claimant is the actual economic recipient of the dividend income, not a nominee or intermediary.

In practice, the DGFiP evaluates:

• Control over the income:
  The investor has to have decision-making power regarding the dividend.

• Economic risk and benefit:
  The investor bears the financial risk and enjoys the economic benefit of the dividend.

• Genuine business purpose:
  The investment should serve a commercial or economic function, not merely a tax advantage.

Without proof of beneficial ownership, the DGFiP may deny treaty benefits or refuse an application for refund, even if all other documentation is complete. This applies to both individual and institutional investors.

Filing process for French dividend withholding tax reclaims

Non-resident investors seeking a French WHT refund must follow a structured filing process through the SIEE. Adhering to the procedure is essential to ensure that the claim is examined timely, and the risk of rejection is minimized.

The steps to file a WHT reclaim for non-residents are:

1. Obtain tax residency certification:
   Use Form 5000, certified by the investor’s home-country tax authority.

2. Complete the reclaim form:
   Fill out Form 5001, specifying the dividend amounts and requested refund.

3. Attach supporting documents:
   Include certificate of residence, Power of attorney (POA) if filing for a third party, dividend vouchers & reclaim letter

4. Submit to the SIEE:
   The DGFiP’s non-resident tax office receives and processes refund applications.

5. Respond to follow-ups:
   The SIEE may request additional information or clarification before issuing the refund.

Claims are generally due within two years of the end of the year in which the dividend was paid, unless extended under specific treaties.

EU and court developments strengthening reclaim rights

Under certain circumstances, institutional investors with a tax-exempt status in their country of residence may find an additional legal basis for reducing or eliminating the French withholding tax (WHT) on dividends, rooted in Article 63 of the Treaty on the Functioning of the European Union (TFEU). This article protects the free movement of capital and prohibits France from applying tax laws that discriminate against foreign taxpayers by treating them less favorably than objectively comparable domestic taxpayers (e.g., equivalent French tax-exempt entities).

The Court of Justice of the European Union (CJEU) has established that this non-discrimination principle has a "third-country" effect, meaning that even non-EU residents may be entitled to the benefit if they are objectively comparable to a French tax-exempt entity receiving dividend income.

The French supreme administrative court, the Conseil d’État, has also upheld this principle on a national level confirming the right of a foreign tax-exempt entity to a refund when it is in an objectively comparable situation to a domestic entity exempt from corporate tax.

The following recent developments have significantly influenced the rights of non-resident investors seeking French WHT refunds:

• Conseil d’État — UBS Asset Management Life Ltd (2021)

In this landmark decision, the French Conseil d’État recognized that a foreign life insurance company, under certain conditions, may claim restitution of French dividend withholding tax when it is economically comparable to French insurers. The ruling leverages the principle of free movement of capital to affirm that foreign insurers should not be discriminated against solely on the basis of residence.

• New French Administrative Guidelines for Foreign CIVs (2020)

France has published updated guidance specifically addressing exemption at source and refund procedures for foreign collective investment vehicles. These guidelines clarify the conditions under which a foreign CIV may qualify for relief—particularly through the test of “objective comparability” to French vehicles, and the procedural requirements for applying for relief or reimbursement. This marks a notable administrative advance in the French WHT refund regime for institutional investment vehicles.

Navigating France’s WHT reclaim landscape

For non-resident investors, reclaiming French dividend withholding tax is a matter of precision and consistency: each element must align with the standards applied to domestic investors to ensure fair treatment under both French law and EU principles.

By outlining how comparability with French investment structures is assessed, the French tax administration has taken a step toward more transparent and predictable procedures. Nevertheless, practical challenges remain: documentation standards are high, deadlines are strict, and the assessment of a refund application takes time.

For financial institutions, asset managers, and cross-border investors, success increasingly depends on understanding the interaction between treaty provisions, EU law, and French administrative practice. Working with advisors familiar with both local procedure and recent jurisprudence is often essential.