A recent decision by the Paris judicial court (April 20, 2026, No. 25/82051) reminds us that a taxpayer's tax residence—whether an entrepreneur, artist, or international investor—depends not only on their declarations or their declared place of residence abroad. A set of concrete elements related to their daily life can be sufficient to establish tax residence in France, with very significant financial and tax consequences.

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An emblematic case: the precautionary seizure of an international artist

In this case, the Execution Judge (JEX) of the Paris judicial court confirmed precautionary seizures carried out preventively on the accounts and rights of an international songwriter-performer. The tax administration believed there was a serious likelihood of residence in France, justifying significant income tax (IR) and VAT assessments for the period 2020–2023, amounting to 4.36 million euros.

Notably, the seizure was authorized without a rectification proposal having been notified, which jurisprudence accepts as long as the tax claim appears "well-founded" (Cass. 2e civ., September 6, 2018, No. 17-16.187).

The judge retained a bundle of material evidence demonstrating significant presence in France:

An apartment rented since 2012 through a company controlled by the artist, with mention of personal occupation;
Regular payment of housing taxes for 2021–2022;
French bank accounts and current expenses incurred in France (gas stations, highways, VTC, subscriptions, home deliveries, etc.);
Schooling and childcare of the child in France, confirmed by a family court judgment.

These elements convinced the court: they characterize French tax residence under Article 4 B of the General Tax Code (CGI).

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Understanding the notion of tax residence: French and international criteria

The internal framework: Article 4 B of the General Tax Code

According to French legislation, an individual is considered a tax resident of France if they meet one of the following criteria:

1. Their home (the place where they live with their family) or their main place of residence is located in France;

2. They carry out their main professional activity there;

3. They have their center of economic interests there (income, investments, assets, etc.).

These criteria are alternative: one is sufficient to justify tax residence in France.

The conventional framework: the so-called "tie-breaker" rule

When a taxpayer claims tax residence in another country, international tax treaties—such as the Franco-American Convention of August 31, 1994—provide successive criteria to distinguish between the two states.

The famous Article 4 §2 a) of the convention establishes the rule: if the person has a home in both countries, they are considered a resident of the state where the center of their vital interests is located, meaning their closest personal and economic ties.

In the aforementioned case, the evidence shows that the artist's presence in the United States was not sufficient to negate their French residence. A simple secondary apartment abroad is not enough: it must be established that daily life, family, expenses, and activity are effectively transferred outside of France.

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The power of judges against the administration: likelihood is enough

An essential legal point of this decision lies in the blocking power of the tax administration even before any formal rectification.

Relying on Article L.511-1 of the Code of Civil Execution Procedures, the Specialized Recovery Pole (PRS DNVSF) was able to carry out precautionary seizures to ensure the future recovery of presumed owed taxes.

The JEX estimated that the absence of a rectification proposal does not prevent the implementation of such measures, as long as the tax claim is sufficiently likely. This position, validated by the Court of Cassation, reinforces the state's ability to act quickly to prevent insolvency.

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Examples and similar precedents

This case echoes other significant decisions:

Former footballer residing in Dubai: despite their claimed expatriation, the court found daily living expenses in France (notably 212 meals delivered in Paris in 2022 via Deliveroo). French residence confirmed, assets seized, and accounts blocked (TJ Paris, March 12, 2026, No. 26/80011).

Caporal case (CE, January 27, 2010, No. 294784): a taxpayer working in the Emirates was considered a French resident due to maintaining their home in France.

CE case, June 17, 2015, No. 371412: French residence was retained despite contrary declarations abroad.

These examples remind us that consistency between tax declarations and material and family evidence is crucial. In case of contradiction, factual evidence prevails.

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Lessons for international entrepreneurs and executives

For entrepreneurs, start-up leaders, or international investors, this jurisprudence illustrates the risks of a careless management of their tax residence.

Some practical takeaways:

Clarify your residence situation: keep concrete evidence of your daily life location and economic interests;

Avoid inconsistencies: leases, subscriptions, daily expenses, and children's schooling must be consistent with tax declarations;

Anticipate audits: the National Directorate of Tax Situation Verifications (DNVSF) has extensive tools to trace presence in France;

Surround yourself with specialized advice: tax residence impacts the taxation of income, capital gains, and global assets.

The administration notably considers that regular use of French payment methods or services (bank cards, energy suppliers, delivery platforms, digital subscriptions, etc.) indicates a personal and economic anchoring in France.

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Points of vigilance for start-ups and executives in mobility

International mobility is common in the start-up ecosystem, between fundraising abroad, temporary expatriation, or developing subsidiaries.

However, the decision-making center, the tax home, and the location of executives remain criteria closely monitored by the administration.

An executive administratively domiciled abroad but managing a French structure from Paris can ultimately be requalified as a French tax resident.

This requalification leads not only to costly tax adjustments but also to the preventive seizure of assets, bank accounts, or copyright rights as a precaution. Hence the importance of rigorous support to prevent any risk of double taxation or harm to assets.

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Conclusion: anticipate rather than suffer

The case of the international artist highlights an essential reality: the notion of tax residence is based on facts, not declarations. In a context where tax authorities are strengthening their international coordination, the slightest indication can trigger an audit and precautionary measures.

For international executives and entrepreneurs, a prior and documented analysis of their personal and professional situation is essential to avoid any future challenges.

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Need for tailored tax support?

PRAX Avocats supports executives, investors, and business creators in managing their tax residence, both in France and internationally.

The firm specializes in French and international taxation, as well as business law.

On issues of social law, intellectual property, or complex contracts, PRAX Avocats collaborates with recognized "Best Friends" firms for their sectoral excellence.

Contact PRAX Avocats to secure your tax and legal situation before any mobility or expatriation steps.

Tax residence in France: when the bundle of indicators outweighs the declaration