French Exit Tax When Moving to Dubai: Who Pays, Deferral and Your Company Valuation

By Bill Anderson, FCCA, Chief Executive Officer, Assetica · Published 2026-11-13

Direct Answer: France charges an exit tax on the unrealised gain in your shares when you move your tax home abroad. It applies if you were French tax resident for at least six of the previous ten years and you hold shares worth more than EUR 800,000, or at least 50% of a company. The tax is calculated on the market value of the shares on the day before you leave, so an independent valuation sets the figure.

Most French founders know the exit tax exists. Fewer know it is charged on a value nobody has agreed yet. There is no sale and no buyer, so the number comes from a valuation.

This guide explains who is caught, how payment can be deferred, and what the valuation has to show. It is for owners of private French companies moving to the UAE.

Who the French exit tax applies to

The rule is in article 167 bis of the French tax code. Published summaries of the rule give three conditions, and all three must be met.

You were French tax resident for at least six of the ten years before you leave.
You hold shares and securities worth more than EUR 800,000 in total, or you hold at least 50% of the profits of a company.
You move your tax domicile out of France.

Property you own directly is generally outside the charge. It is aimed at shareholdings.

What is taxed, and at what rate

France treats you as if you had sold your shares the day before departure. The gain is the market value less what you paid. It is taxed under the flat tax regime, which combines income tax at 12.8% with social charges. The social charge rate has changed recently, so ask your adviser for the combined rate that applies to your departure date.

Deferral: when you do not pay straight away

Payment is usually deferred, not collected on the day. How you get the deferral depends on where you move.

Automatic deferral. Moves to EU countries and to certain other countries that have tax assistance agreements with France.
Deferral on request. Moves elsewhere, where you apply before leaving, appoint a tax representative in France and may have to give guarantees.

Check with your French adviser which route applies to a move to the UAE at the time you leave, because the list of qualifying countries is set by the tax authority.

The deferred tax is cancelled if you still hold the shares after a set period. Published guides give two years, or five years where the shares are worth more than EUR 2.57 million. Selling the shares during that period brings the tax due.

Where the valuation comes in

Because the exit tax is charged without a sale, the valuation is the tax base. A figure that is too high costs you tax. A figure that is too low will not survive a review.

On departure. A market value of your shares on the day you stop being resident, which is the figure the tax is calculated on.
For the Golden Visa. A report showing your own equity is worth at least AED 2 million, net of debt. Our Golden Visa valuation guide covers what it must contain.
On a later sale or restructuring. A value a buyer, a funder or a tax authority will accept.

Use one valuation for all three. We fix the valuation date, the method and the normalised earnings once, then format the result for each reader, so the figures never disagree.

The French tax authority publishes the forms and current rates. Our guide to moving a business from Europe to Dubai compares the exit rules across countries.

Leaving France for the UAE?

Tell us your departure date and what you own. At the scoping call we confirm the valuation date, the readers and the scope, then quote a fixed fee in writing.

Business valuation for French owners in the UAE

Frequently Asked Questions

Who pays the French exit tax?

People who were French tax resident for at least six of the previous ten years and who hold shares worth more than EUR 800,000 in total, or at least 50% of a company, when they move their tax domicile out of France.

Do I pay the French exit tax immediately when I move to Dubai?

Usually not. Payment can be deferred, automatically for some destinations and on request for others. A deferral on request needs an application before you leave, a tax representative in France and possibly guarantees. Confirm which route applies to the UAE with your French adviser.

Can the French exit tax be cancelled?

Yes. If you still hold the shares at the end of the holding period, the deferred tax is cancelled. Published guides give two years, or five years where the shares are worth more than EUR 2.57 million. A sale during that period makes the tax due.

Why do I need a valuation for the French exit tax?

Because there is no sale. The tax is calculated on the market value of your shares on the day before you leave, so an independent valuation is the evidence for that figure.

This article is general information, not French or UAE tax, legal or investment advice. Tax rules, rates and thresholds change. Confirm the current position with a qualified French tax adviser before you act.

Disclaimer. This article is general information about valuation practice in the UAE and is not a valuation, an opinion of value, or tax, legal or investment advice. Any figures or reference ranges are indicative and are not a quotation for any specific business. Rules, rates and the requirements of individual authorities change, so confirm the current position before relying on anything here. For your own circumstances, book a scoping call.

Speak to Assetica about Business Sale & M&A Advisory

Assetica is an independent business valuation firm in Dubai. We do not audit and we do not broker deals, so the number carries no conflict. Read more about business sale & m&a advisory, or book a scoping call. Standard reports are issued in five to seven business days.