Form 3916 in France: Declaring Foreign Accounts and Contracts, and the Penalties

Holding a bank account outside France is perfectly lawful. Failing to declare it is not. Confusing these two statements leads to heavy tax reassessments every year, even though the obligation comes down to one form filed with the income tax return. Since automatic exchange of information became widespread, the tax authorities often know the account exists before the taxpayer declares it.

The framework for leaving France is covered on our page on planning a change of tax residence.

Is it legal for a French resident to hold a foreign bank account?

Yes. No legal provision prohibits a French resident from opening a bank account, a securities account or a life insurance contract with a foreign institution. The free movement of capital within the European Union reinforces this right.

What is regulated is informing the tax authorities. Article 1649 A of the French Tax Code (Code général des impôts, CGI) requires individuals, associations and companies without a commercial legal form, domiciled or established in France to declare, at the same time as their income tax return, the details of accounts opened, held, used or closed abroad.

All four verbs matter. An account that is merely held, with no transactions during the year, must be declared. An account closed during the year must also be declared.

What must be declared, and on which form? Form 3916

The declaration is made using form 3916-3916 bis, filed at the same time as the income tax return. It covers three categories.

• Bank accounts and securities accounts opened with an institution established outside France, including with investment service providers, public authorities or persons who customarily receive securities or cash on deposit.
• Capitalisation contracts and similar investments, in particular life insurance contracts, taken out outside France, under Article 1649 AA of the CGI.
• Crypto-asset wallets opened, held, used or closed with an entity established abroad, as well as NFTs held or used abroad, under Article 1649 bis C of the CGI.

When filing online, the unified form is selected from the list of additional returns. A declaration is required for each account, for each year in which it was opened, held, used or closed.

Penalties for failing to file form 3916

Two consequences make matters worse. First, Article 1649 A creates a presumption: sums transferred abroad or received from abroad through an undeclared account constitute taxable income unless proven otherwise. Second, Article L169 of the French Tax Procedure Code (Livre des procédures fiscales, LPF) extends the reassessment period from three to ten years in the event of a breach of the obligations under Articles 1649 A and 1649 AA, except, for accounts, where their balance did not exceed €50,000 at any time during the year. Finally, where tax is reassessed, the 80% surcharge replaces the fixed fine and cannot be lower than it (Article 1729-0 A of the CGI).

A worked example

A French resident has held a securities account in Luxembourg since 2017, never declared, funded by €350,000 of transfers from a French account, and which has generated €12,000 of income a year.

• Fine: €1,500 per undeclared account, as Luxembourg has concluded an administrative assistance agreement with France. It does not apply in addition to the 80% surcharge applied to the tax reassessed.
• Reassessment period: extended to ten years once the account balance exceeds €50,000. In 2026, the tax authorities can go back as far as 2016 income, so here as far as 2017, the first year the account was held.
• Income reassessed: €12,000 a year over the reassessed period, taxed at the flat rate of 12.8% or under the progressive income tax scale, plus social levies.
• Surcharge: 80% on the tax reassessed, under Article 1729-0 A of the CGI, to the exclusion of the surcharges under Articles 1728 and 1729 and of the fixed fine, plus late-payment interest.
• Presumption: the €350,000 transferred may be presumed to be taxable income, and it is for the taxpayer to prove the origin of the funds, for example transfers from a French account that has already been taxed.

The burden of proof here lies with the taxpayer. The older the years, the harder it is to document.

What the tax authorities already know

Automatic exchange of financial account information is in place within the European Union and with a large number of non-EU States. Financial institutions identify non-resident account holders and send their balances and income each year to their own tax authority, which then passes them on to the State of residence.

The practical consequence is straightforward: in most cases, failing to declare creates no secrecy at all. It merely creates a breach, and a discrepancy between the data received by the tax authorities and the return filed.

What should you do if an account has never been declared?

The useful route is a voluntary amended return, filed before any audit. It removes neither the tax nor the fines, but it changes the context: the approach is voluntary, the tax is paid, and the criminal side is assessed differently. The procedure and its cost are detailed in our article on the regularisation procedure, and on our voluntary tax disclosure lawyer page.

The most common special cases

Accounts opened before moving to France. A taxpayer who settles in France often keeps accounts in their home country. They fall within the scope of the obligation from the first year of French tax domicile, even if there are no transactions on them.

Joint accounts and accounts held under a power of attorney. The obligation covers the account holder, but also the person who holds or uses the account. A power of attorney granting authority to use a foreign account brings its holder within the scope.

Accounts opened through a platform. Payment accounts and e-money accounts opened with an institution established outside France are in principle subject to the same obligation. The only exemption covers certain accounts used for online purchases and sales, linked to an account opened in France, with annual receipts not exceeding €10,000.

A minor’s account. An account opened in the name of a child who is part of the tax household is declared with the household’s return.

What the declaration does not do

Declaring an account does not in itself trigger any additional tax. The form lists the account details: institution, number, date of opening or closure, address. It reports neither the balance nor the income.

The income generated by the account, on the other hand, is declared separately, in the relevant sections of the income tax return and, where applicable, on the return for foreign-source income. Confusing the two steps leads taxpayers to file the form while omitting the account income, which leaves part of the breach in place.

Key points

• Holding an account outside France is lawful; declaring it every year on form 3916-3916 bis is mandatory, even if there are no transactions.
• The fine is €1,500 per account, raised to €10,000 for States without an assistance agreement; the reassessment period increases from three to ten years where the balance exceeds €50,000.
• Sums transferred through an undeclared account are presumed to be taxable income.

Frequently asked questions

Must a dormant account be declared?
Yes. Article 1649 A covers accounts opened, held, used or closed abroad. An account held with no transactions during the year falls within the scope of the obligation.

Which form should be used?
Form 3916-3916 bis, filed at the same time as the income tax return. It covers bank and securities accounts, capitalisation and life insurance contracts taken out outside France, and digital asset accounts.

What is the fine for failing to declare?
€1,500 per undeclared account, raised to €10,000 where the account is located in a State that has not concluded an administrative assistance agreement with France. Where tax is reassessed, an 80% surcharge applies instead of the fine and cannot be lower than it.

Must a cryptocurrency account be declared?
Yes, where it is opened, held, used or closed with an entity established abroad, under Article 1649 bis C of the CGI. NFTs held or used abroad are also covered.

Do the tax authorities already have the information?
In most cases, yes. Under automatic exchange of information, foreign financial institutions send the balances and income of non-resident account holders each year to their own tax authority, which passes them on to the State of residence.

Bringing your situation into compliance

We draw up an inventory of the accounts and contracts concerned, prepare the declarations and, where necessary, handle the regularisation. See our article on Article 750 ter of the CGI, our article on the points examined by the tax authorities, our article on the legality and declaration of a Luxembourg life insurance contract and our page tax lawyer for expatriation in Paris. Every situation is different and deserves a dedicated analysis.

Official sources

• Article 1649 A of the French Tax Code (CGI), declaration of accounts opened, held, used or closed abroad – Légifrance (in French)
• Article 1649 bis C of the French Tax Code (CGI), crypto-asset wallets and NFTs held abroad – Légifrance (in French)
• Article 1649 AA of the French Tax Code (CGI), life insurance contracts taken out outside France – Légifrance (in French)
• Article 1736 of the French Tax Code (CGI), fines – Légifrance (in French)
• Article 1766 of the French Tax Code (CGI), fine relating to contracts taken out outside France – Légifrance (in French)
• Article 1729-0 A of the French Tax Code (CGI), 80% surcharge – Légifrance (in French)
• Article L169 of the French Tax Procedure Code (LPF), ten-year reassessment period – Légifrance (in French)
• French Public Finances Directorate-General (DGFiP), form no. 3916 – impots.gouv.fr (in French)
• BOFiP (official French tax guidance), declaration of accounts opened, held, used or closed outside France – bofip.impots.gouv.fr (in French)

This article sets out the law for general information purposes, as verified on the date of publication. It does not constitute legal advice. Every situation is different and deserves a dedicated analysis. Content compliant with the professional conduct rules of the legal profession.