French tax authorities determine tax residency based on several factors, not just physical presence in another country. According to the French tax code (Article 4 B of the CGI), a person is considered a French tax resident if their household or principal place of stay is in France, or if they carry out their professional activity there, or if their economic interests are centered in France.
For French expatriates living in Morocco, the double tax treaty between France and Morocco (signed in 1970, last amended in 2014) provides specific rules. Under this treaty, an individual is considered a resident of Morocco if they have a permanent home there, or if their center of vital interests (personal and economic ties) is in Morocco. However, French tax authorities may still challenge this if the expat maintains strong ties to France, such as a family home, bank accounts, or professional activities.
In practice, French expats in Morocco must prove they have cut most ties with France to avoid being considered French tax residents. The French tax administration often examines factors like the location of the taxpayer's spouse and children, the place of their main bank accounts, and the duration of their stay in Morocco. A mere physical presence in Morocco is not sufficient to change tax residency.
Recent cases have shown that French expats who keep a secondary residence in France or continue to work for a French employer may still be taxed in France. The burden of proof lies with the taxpayer to demonstrate that their center of vital interests is in Morocco.
It is advisable for French citizens moving to Morocco to consult a tax expert to ensure compliance with both French and Moroccan tax laws, and to avoid double taxation or penalties.
