Question to an expert
I have an account in a bank that is not French, is it true that this must be included in my tax return?
In your tax return, you must declare any bank account held abroad in 2022, including those of 100% mobile banks like N26, Revolut, etc.
What are the risks of not declaring these accounts? The legal arsenal is tough: a fine of 1,500 euros per account and per year of omission, or even 10,000 euros if the country does not have an intelligence exchange agreement with France, or an increase of 80% on the income or assets of the account (with a minimum of 1,500 euros). The same penalties apply to life insurance.
Money flowing through the account is treated as taxable income, unless you prove that it is not. Furthermore, if the origin of the assets cannot be explained, a tax of 60% of the highest account balance may be applied.
Ten-year turnaround
Please note: in the event of non-declaration of an account abroad, the recovery may not cover three years but ten years.
The Nantes Administrative Court of Appeal, however, ruled, end of 2022, that if the income was correctly declared and if the tax authorities had sufficient clues to identify the contract and initiate an investigation, the ten-year prescription was not applicable. The case concerned a Luxembourg life insurance company. Confirmation from the Council of State would be welcome.