French Polynesia
& Tahiti

French Polynesia is an overseas collectivity of France, scattered across the South Pacific in five archipelagos: the Society Islands, the Tuamotus, the Gambiers, the Marquesas, and the Australs. Together they comprise 118 islands and atolls spread across an ocean expanse larger than Western Europe. The capital, Papeete, sits on the island of Tahiti — the commercial and administrative centre, and the point of arrival for almost everyone who comes.

Life here is shaped by the sea, the heat, and a particular Polynesian ease with time. The pace is slower than Europe, the distances are vast, and the beauty — volcanic peaks, turquoise lagoons, black-sand beaches — is not exaggerated by the travel brochures. More than 3,000 hours of sunshine per year is the norm. The people are warm, the French administrative system is familiar to Europeans, and the territory has a functioning healthcare system in Papeete that meets European standards.

On the tax side, French Polynesia is exceptional. There is no personal income tax, no wealth tax, no inheritance tax, and no capital gains tax for private individuals. Companies enjoy a full tax exemption in their first year of operation. The solidarity contribution (CST) — a graduated levy on wages — replaces income tax and reaches a maximum of 25% only at high salary levels. For entrepreneurs, investors, and high-net-worth individuals, the combination of French legal infrastructure and near-zero direct taxation is rare and genuinely valuable.

What to be aware of

French Polynesia is not for everyone. The cost of living is very high — food is expensive because almost everything is imported, and a return flight to Europe costs upwards of €2,000 and takes 20+ hours. Healthcare outside Papeete is limited: on the outer islands, medical facilities are basic and serious conditions require evacuation to Tahiti or France. The internet infrastructure is improving but remains unreliable by European standards on many islands. French Polynesia has no double tax treaties with major European countries, which means foreign-source income must be managed carefully to avoid double taxation. And for those who do not speak French, daily life — dealing with administration, banks, and local services — can be genuinely difficult.

The territory is best suited to people who want to build a life there, not simply register an address. The tax advantages are real, but they require a genuine relocation — and that means accepting the isolation, the distance from family and colleagues in Europe, and the particular rhythms of island life.

French Polynesia does not announce itself. It arrives — in the sudden blue of a lagoon glimpsed from a descending plane, in the warm weight of the air as the cabin door opens, in the scent of tiare blossoms pressed into a garland and placed around your neck by a stranger who smiles as if she has been expecting you. The islands do not perform beauty. They simply are beautiful, with the indifference of something that has always been this way.

Scattered across an ocean expanse larger than Western Europe, the 118 islands and atolls of French Polynesia fall into five archipelagos — the Society Islands, the Tuamotus, the Gambiers, the Marquesas, and the Australs. Each has its own character. Bora Bora is the postcard: the black-tipped peak of Mount Otemanu rising from a lagoon of impossible turquoise, ringed by a necklace of motus where the sand is so fine it squeaks underfoot. The Marquesas are something else entirely — raw, volcanic, brooding, their cliffs plunging straight into a sea that has no reef to tame it. Here Gauguin came to die, and here Herman Melville jumped ship and fell in love with a people he could not forget.

The Polynesian people carry their history lightly. They are the greatest navigators the world has ever known — their ancestors crossed the Pacific in outrigger canoes guided by stars, currents, and the flight of birds, settling islands separated by thousands of miles of open ocean centuries before Europeans had left sight of land. That confidence, that ease with distance and with the sea, is still visible in the way a Tahitian fisherman reads the water, or in the way a dancer moves at a heiva festival, the drumbeat carrying something ancient and unbroken.

Life here moves at a pace that cannot be legislated. The pace of tides. The pace of fruit ripening on a tree you did not plant. Papeete, the capital, has traffic and noise and a covered market where you can buy vanilla pods, black pearls, and raw tuna at six in the morning. But twenty minutes by ferry, Moorea rises from the sea like a cathedral, and the world you left behind becomes genuinely difficult to remember.

"The South Pacific is memorable because when you are in the islands you simply cannot ignore nature. You cannot avoid looking up at the stars, large as apples. You cannot avoid hearing the surf. You cannot avoid smelling the flowers."

"Tahitians don't chase happiness. Happiness comes naturally to them. You only need to see them in the water, with a beer in their hand, splashing each other or waving to every stranger they see on the road, to know this. Happiness is in the air: in every hibiscus flower that opens early in the morning, in the sweet aroma of the pineapple plantations, in the smile of the people lolling around idly, resting slothfully in the warm breeze that ruffles the surface of the lagoon."

"The narrow coastal road has many twists and turns, each one revealing scenery of incredible beauty. On one side, the mountains rise proud and steep, challenging the sky; on the other, the tropical lagoon sparkles like a zillion twinkling stars."

"Jacques-Yves Cousteau declared Tikehau — an hour's flight from Tahiti — the richest atoll on earth."

French Polynesia offers something very straightforward: the near-complete absence of personal direct taxation.

With its tax advantages, French Polynesia has created a genuine magnet for businesses and investors. The elimination of numerous tax categories and the incentives for economic activity have brought this South Sea nation into the focus of entrepreneurs worldwide.

• ›No personal income tax — private individuals pay zero income tax on any source of income.
• ›No capital gains tax — gains from shares, property, or any asset are untaxed.
• ›No inheritance or gift tax — wealth transfers between generations are free of duty.
• ›No wealth tax — there is no net-worth or net-wealth levy of any kind.
• ›Corporate tax exemption in Year 1 — new companies pay zero corporate and transaction tax in their first 12 months of operation.
• ›Reduced corporate rate for green energy — sustainable-energy companies enjoy a permanent 20% reduction on the standard 25% rate.
• ›Sole trader flat fee — for annual turnover up to €41,900, a flat supplementary fee of €377 covers all taxes.

Anyone incorporating a company in Tahiti or on a neighbouring island benefits from a full exemption from corporate tax and transaction tax in the first financial year (12 months). Only the business licence fee (patente) applies — a flat annual charge plus a component based on leased office space. Even in exceptional cases where a transaction tax would normally apply, there is a simple refund procedure to recover it after the fact.

A defining feature of French Polynesia is that no tax is levied on personal income. Income tax does not exist. In its place, a percentage of the solidarity contribution is deducted from wages and salaries, graduated according to monthly income brackets. Because this contribution is deducted directly by the employer, employees have no obligation to file a separate return.

The figures below have been converted from CFP francs to euros for readability.

French Polynesia has its own tax administration — the Direction des Impôts et des Contributions Publiques (DICP) (impots.pf) — which operates independently from mainland France. Tax residency in French Polynesia is determined by the DICP under local rules, not French metropolitan law.

According to the DICP, a person is considered a tax resident of French Polynesia if they meet any one of the following criteria:

• ›Principal home (foyer): Your habitual place of residence is in French Polynesia — meaning your family home, or the place where you normally live when not absent for professional reasons.
• ›Principal place of stay: You spend more time in French Polynesia than in any other single country during the tax year. The 183-day rule is used as a practical guide: spending more than 183 days in the territory in a calendar year is strong evidence of principal residence.
• ›Centre of economic interests: Your principal investments, business activities, or professional activities are based in French Polynesia.

Because French Polynesia levies no personal income tax, the DICP does not issue formal tax residency certificates in the same way as high-tax jurisdictions. There is no annual income tax return to file for private individuals. However, tax residency still matters for two reasons: it determines your exposure to the solidarity contribution (CST) on wages, and it is the basis on which French Polynesia participates in the OECD Common Reporting Standard (CRS) — meaning your tax residency status will be reported to foreign tax authorities if you hold accounts abroad.

French Polynesia has no double tax treaties of its own with any country. This is one of the most important practical limitations of the territory for internationally mobile individuals and businesses. Unlike metropolitan France — which has an extensive treaty network covering over 120 countries — French Polynesia operates its own tax system and has not concluded any bilateral tax agreements.

The treaties that France has signed with countries such as Germany, the United Kingdom, the United States, Switzerland, and others do not automatically extend to French Polynesia. French Polynesia is an overseas collectivity with its own fiscal administration (the DICP), and its tax laws are entirely separate from those of metropolitan France. Whether any specific French treaty applies to French Polynesia depends on the wording of that treaty and has not been definitively resolved for most bilateral agreements. Do not assume treaty protection applies without specific legal advice.

In practical terms, this means:

• ›Foreign-source income (dividends, interest, royalties, rental income from abroad) is taxed according to the source country's domestic rules — with no treaty reduction available from the French Polynesia side.
• ›No reduced withholding tax rates on dividends or interest paid to French Polynesia residents — source countries apply their full domestic withholding rates.
• ›No tie-breaker rules for dual-residency disputes — if both your home country and French Polynesia claim you as a tax resident, there is no treaty mechanism to resolve it.
• ›Careful structuring is essential — particularly for those with significant investment income, pension income, or business income from abroad. The absence of treaties makes the choice of corporate structure and asset location more important, not less.

Relocating to French Polynesia does not automatically end your tax obligations elsewhere. The critical question is whether you have genuinely severed tax residency in your country of origin — and this is determined not by where you have registered an address, but by where you actually live, where your ties are, and how your life is organised.

Most countries use a combination of objective tests to determine tax residency: the number of days you spend on their territory, where your family lives, where your habitual abode is, where your business is managed, and where your social and economic life is centred. If you spend more than 183 days in your home country, maintain a family home there, or continue to manage a business from there, you may remain fully tax resident — regardless of what your passport or registration documents say.

Under OECD model tax treaty rules, when two countries both claim you as a tax resident, the tiebreaker is your centre of vital interests: the country with which your personal and economic ties are closer. This is a factual assessment, not a formal one. Courts and tax authorities look at where your spouse and children live, where your property is, where your professional activity is directed, and where you spend your time in practice.

A sham relocation — registering an address in French Polynesia while continuing to live, work, and maintain your life elsewhere — does not achieve tax freedom. It creates legal risk. Tax authorities in most countries have the power to challenge a claimed change of residence, and the burden of proof falls on you to demonstrate that the move was genuine.

We only work with clients who are serious about making a real move. Proper planning — including the timing of the departure, the restructuring of business interests, the handling of exit taxes, and the documentation of the new residence — is what distinguishes a clean relocation from a costly mistake.

Before you relocate, you need to understand what tax consequences arise in your current country of residence at the point of departure. These rules vary significantly by country and must be assessed individually — there is no universal answer.

Many countries impose an exit tax or deemed disposal charge when a tax resident leaves. This typically applies to unrealised capital gains on shares, business interests, real estate, or other assets — taxing you as if you had sold everything on the day you departed. The rules differ widely: some countries apply this to all assets above a threshold, others only to substantial shareholdings or business interests. Some have look-back periods that can catch you even after you have left.

Among the countries that levy a meaningful exit tax or deemed-disposal charge:

• ›Germany — Applies an exit tax on unrealised gains in shareholdings of 1% or more under §6 AStG. A ten-year look-back period can apply even after departure.
• ›United States — The "expatriation tax" under IRC §877A treats long-term residents and citizens as having sold all worldwide assets at fair market value on the day they relinquish citizenship or residency. There is no escape for covered expatriates.
• ›France — Exit tax applies to unrealised gains on securities and company rights above €800,000 when a French tax resident relocates abroad.
• ›Netherlands — Deemed disposal applies to substantial shareholdings (5% or more) at the point of emigration. A deferral mechanism exists for moves within the EU.
• ›Australia — Departing residents are treated as having disposed of most assets at market value on the date they cease to be Australian tax residents.
• ›Canada — The "departure tax" deems most property to have been disposed of at fair market value on the date of emigration, triggering capital gains on unrealised appreciation.
• ›Denmark — Applies exit taxation on shares and other securities held at the time of departure, with deferred payment options for moves to other EU/EEA states.

Beyond exit tax, you may remain subject to limited tax liability in your home country after the move — for example, on rental income from property you continue to own there, on dividends from domestic companies, or on pension payments. Severing tax residency does not necessarily sever all tax obligations.

The timing of your departure, the structure of your assets, and the sequence of any business disposals all have material consequences. In some cases, restructuring assets before departure — or deferring the move by a few months — can make a significant difference to the tax outcome.

French Polynesia offers several corporate structures, broadly mirroring the French system. The most commonly used are:

• ›SARL (Société à Responsabilité Limitée) — the equivalent of a limited liability company. The most popular structure for small and medium businesses. Minimum capital is 1 XPF (effectively zero).
• ›SA (Société Anonyme) — a joint-stock company suitable for larger operations or where multiple shareholders and a formal board structure are required.
• ›SAS (Société par Actions Simplifiée) — a simplified joint-stock company with flexible governance rules, increasingly popular with entrepreneurs.
• ›Entreprise Individuelle (sole trader) — for individuals operating without a separate legal entity. Simple to set up, but offers no liability protection.

The standard corporate tax rate is 25% from Year 2 onwards. Sustainable-energy companies benefit from a permanent 20% reduction (effective rate: 20%). Financial sector companies pay 35%. In Year 1, all new companies are fully exempt from both corporate tax and transaction tax.

Is a local company always the right answer?

Not necessarily. For many internationally mobile entrepreneurs, it is more tax-efficient to set up a company in a low-tax or zero-tax jurisdiction outside French Polynesia — and simply draw a tax-free or low-taxed salary or dividend from that entity while residing in French Polynesia. Popular structures include:

• ›US LLC (single-member, disregarded entity) — no US corporate tax if the owner is a non-US person; income flows through to the individual. Widely used by non-US residents for international business.
• ›Singapore company — 17% headline corporate rate with extensive exemptions for new companies; strong banking access and international credibility.
• ›UAE company (mainland or free zone) — 0% corporate tax on qualifying income; straightforward setup; no personal income tax on distributions.

Setting up the right offshore structure is something we do regularly for clients relocating to French Polynesia. Learn more about our company setup services →

A move to French Polynesia makes most sense for entrepreneurs who want to generate revenue on the ground with a local business idea. The favourable tax models and low fees make incorporation an attractive proposition. Products and services in the sustainability sector are particularly well-regarded by the government.

Because French Polynesia is bound by French regulations and administration, taxes on foreign-source income do not apply at the local level. Taxes are levied only in the source country and are exempt in the country of residence — though the absence of tax treaties means you must manage this carefully.

For cryptocurrency traders or private individuals interested in crypto assets, French Polynesia offers no clear recommendation. The topic is still treated very controversially and clear regulations are lacking. With only one licensed ICO to date, the territory is not yet a reliable destination for crypto investors.

French Polynesia is less suitable for those who need to remain close to European business networks, who have significant foreign-source investment income requiring treaty protection, or who are unwilling to genuinely relocate their centre of life to the islands.

French Polynesia is an overseas collectivity of France, which means immigration rules follow French law — but with important local variations. The key distinction is between EU/EEA/Swiss citizens and all other nationalities.

EU, EEA, and Swiss Citizens

Citizens of EU member states, EEA countries (Norway, Iceland, Liechtenstein), and Switzerland enjoy free movement rights in French Polynesia. No visa is required to enter or stay. You may arrive, find accommodation, and begin establishing your life without any prior application.

After three months, you are required to register your presence at the local town hall (Mairie) and apply for a residence document. Two options are available:

• ›Attestation d'enregistrement (1-year renewable): A simple registration certificate confirming your right of residence. Renewed annually for the first five years. No minimum physical stay requirement is prescribed by law, but you must be able to demonstrate genuine residence if challenged.
• ›Carte de résident (10-year card): Available after five years of continuous legal residence. Continuous residence generally implies spending the majority of each year in the territory — extended absences (typically more than 6 consecutive months) can interrupt continuity. Renewable automatically once granted.

The registration process requires proof of identity, proof of address in French Polynesia, and evidence of sufficient financial means (or proof of employment or business activity). It is administrative rather than discretionary — EU citizens who meet the basic conditions cannot be refused.

Non-EU Citizens

Citizens of countries outside the EU/EEA/Switzerland face a more structured process. A long-stay visa (Visa Long Séjour) must be obtained from a French consulate in your home country before arrival. French Polynesia does not have its own consular network — applications go through French diplomatic missions.

The most relevant visa categories for those seeking to relocate for tax purposes are:

• ›Visa Long Séjour – Visiteur: For those with sufficient passive income or savings who do not intend to work locally. Requires proof of financial self-sufficiency (typically €1,500–€2,000/month) and private health insurance. Valid for one year and renewable. Minimum physical presence: you must actually reside in French Polynesia — this is not a visa that permits you to be absent for most of the year.
• ›Visa Long Séjour – Salarié / Travailleur indépendant: For those taking up employment or establishing a business in French Polynesia. Requires a job offer or business registration documentation.
• ›Visa Long Séjour – Conjoint de Français: For spouses of French nationals, including Polynesian French citizens.

After arriving on a long-stay visa, non-EU residents must apply for a titre de séjour (residence permit) at the local prefecture. Permits are typically granted for one year initially and renewed annually. After five years of continuous legal residence, non-EU citizens may apply for a carte de résident — a 10-year permit that provides stable long-term status. Continuous residence for non-EU holders requires spending at least 6 months per year in French Polynesia — absences longer than 6 consecutive months generally break continuity and reset the clock.

Because French Polynesia is an overseas collectivity of France, citizenship in French Polynesia is effectively French citizenship. There is no separate Polynesian nationality — residents who naturalise become French citizens, with all the rights and obligations that entails, including an EU passport.

The standard path to French citizenship through naturalisation requires:

• ›5 years of continuous legal residence in French territory (including French Polynesia). This is the general rule; the period may be reduced to 2 years for those who have completed higher education in France or made an exceptional contribution.
• ›Sufficient French language skills — typically B1 level or above. A language test is required as part of the application.
• ›Integration into French society — demonstrated through knowledge of French history, culture, and values (assessed in an interview).
• ›Clean criminal record and no outstanding tax liabilities.
• ›Stable income sufficient to support yourself without recourse to public funds.

Spouses of French citizens may apply after just 4 years of marriage (with 3 years of continuous residence in France or French territory). Children born in French Polynesia to at least one French parent acquire French citizenship at birth.

The practical implication for tax planners: acquiring French citizenship triggers French worldwide tax obligations if you subsequently move to metropolitan France or are deemed a French tax resident. This is an important consideration for those who naturalise and later wish to relocate — French exit tax rules and worldwide income taxation would then apply.

French Polynesia has a functioning banking system, supervised under French regulatory standards. The main local banks are:

• ›Banque de Polynésie (part of the Société Générale group)
• ›Banque de Tahiti (part of the BPCE group)
• ›Banque Socredo (state-backed development bank, widely used for business accounts)
• ›Caisse d'Épargne (savings bank, part of the BPCE network)

Opening a local account is generally straightforward for residents with a valid address and residence permit. However, local banks are not well-suited as your primary international banking hub. They operate primarily in CFP francs (XPF), have limited international wire transfer capabilities compared to major financial centres, and may not be accepted by all counterparties abroad.

Where to hold your main accounts

For internationally mobile individuals and entrepreneurs, it is generally advisable to maintain your primary banking relationships outside French Polynesia, in a jurisdiction with strong banking infrastructure, broad international acceptance, and ideally some degree of privacy protection. Jurisdictions we frequently recommend include:

• ›Switzerland — private banking tradition, multi-currency accounts, strong asset protection, and high banking secrecy standards within the limits of international law.
• ›Singapore — Asia-Pacific hub, excellent international wire infrastructure, strong regulatory framework, and broad acceptance by global counterparties.
• ›United States — US dollar accounts at major US banks are universally accepted; useful for USD-denominated businesses and investments.
• ›Georgia (Caucasus) — easy account opening for non-residents, low fees, and a surprisingly robust banking system for a jurisdiction of its size. Particularly useful as a secondary account.

We help clients identify the right banking structure for their specific situation. Learn more about our offshore banking services →

French Polynesia has growing development prospects that extend well beyond its dominant tourism sector. The ecological diversity and the use of sustainable resources make the territory increasingly interesting for investors and entrepreneurs. Further advantages:

• ›Connection to France and thus to a full EU member state — French legal system, French passports, French consular protection.
• ›Growing labour market for skilled workers, particularly in tourism, sustainability, and digital services.
• ›Broad investor base creating space for new businesses in digitalisation and tourism.
• ›Growth of the "blue economy" — aquaculture, pearl farming, and sustainable marine industries.
• ›International support for sustainable development initiatives.
• ›Well-organised infrastructure on and between the islands — domestic flights, ferries, and inter-island services.
• ›Tropical-warm climate throughout the year — over 3,000 hours of sunshine annually.
• ›Balance between modernity and tradition — French administrative standards alongside a vibrant Polynesian culture.

The Tahitian pearl industry deserves special mention. The dark pearls of Tahiti are legendary — cultivated on pearl farms across the South Pacific and sold in dozens of shops on the islands. They are among the most valuable pearls in the world and represent a thriving local luxury industry with genuine business opportunities for those who want to engage with it.

The international cost-of-living database Numbeo uses an index where 100 represents the cost of living in New York City. Values below 100 indicate that a category of expenses is cheaper than New York; values above 100 indicate it is more expensive.

The data for French Polynesia makes one thing clear: the cost of living on the islands is very high. Food in particular is extremely expensive, driven by the heavy reliance on imported goods. As with any comparison, costs in urban centres are significantly higher than in the rest of the territory. The figures below are indicative; your actual costs will depend on your lifestyle and chosen island.

French Polynesia has no blanket prohibition on foreign ownership of real estate, but the rules are more nuanced than in many other jurisdictions — and the practical barriers to purchasing property are significant.

Land tenure and the Domaine Public

A substantial portion of land in French Polynesia — particularly on the outer islands and in coastal areas — is either customary land (terre coutumière) held collectively by Polynesian families, or forms part of the Domaine Public (public domain). Customary land cannot be sold to foreigners and in many cases cannot be sold at all. This significantly limits the supply of freehold land available for private purchase.

Freehold purchases

Where freehold land is available and legally transferable, foreigners may purchase it. There is no formal restriction based on nationality for most residential and commercial properties. However, prior authorisation from the French Polynesian government is required for certain acquisitions — particularly those involving agricultural land or properties above a certain value threshold. The process is handled through the Service-Public.pf portal and the relevant territorial administration.

Leasehold as the practical alternative

In practice, many foreigners — including those building overwater bungalow villas or resort properties — operate on long-term leases (baux emphytéotiques) rather than outright freehold ownership. These emphyteutic leases can run for up to 99 years and provide substantial security of tenure while avoiding the restrictions on freehold transfer.

• ›No capital gains tax on property sales — gains from real estate are untaxed in French Polynesia, making it attractive for property investors who are genuine residents.
• ›Notary fees and transfer taxes apply on purchases — typically 7–10% of the purchase price in total transaction costs.
• ›Rental income from property in French Polynesia is subject to the local transaction tax regime rather than income tax — the rate depends on the type of rental activity.
• ›Title verification is essential — land registry records in French Polynesia can be incomplete or disputed, particularly for older parcels. Always engage a local notary (notaire) and conduct thorough due diligence before any purchase.

For retirees, French Polynesia offers a compelling combination of zero tax on pension income, a warm climate, stunning natural beauty, and a French administrative framework that is familiar and reliable. It is not the cheapest retirement destination in the world — but for those with sufficient means, it offers a quality of life that few places can match.

Key considerations for retirees

• ›Tax on pensions: French Polynesia levies no personal income tax. Pension income from abroad is not taxed locally. However, your home country may continue to tax your pension at source — this depends on whether a tax treaty applies and on your home country's domestic rules. Always verify before assuming your pension is tax-free.
• ›Retiree visa: EU citizens need no visa. Non-EU retirees typically apply for a Visa Long Séjour – Visiteur, which requires proof of sufficient passive income (typically €1,500–€2,000/month) and private health insurance. This is the standard route for financially independent retirees.
• ›Healthcare: Papeete has a good public hospital (Centre Hospitalier de la Polynésie Française) and several private clinics. Standards are broadly comparable to metropolitan France. Outside Papeete, medical facilities are limited — serious conditions require evacuation to Tahiti or France. Private health insurance is essential, particularly for those living on the outer islands.
• ›Accessibility: French Polynesia is well-connected by air — direct flights from Paris (20+ hours), Los Angeles (8 hours), and Auckland (5 hours). Domestic inter-island flights are frequent. The territory is genuinely accessible, though long-haul travel is a fact of life.
• ›Cost of living: High by global standards — budget at least €4,000–€6,000/month for a comfortable retirement lifestyle in Papeete, less on quieter islands. The high cost is driven primarily by imported food and goods.
• ›Tax treaties: French Polynesia has no tax treaties of its own. Retirees with pension income from Germany, the UK, the US, or other countries should verify how their pension is taxed in the source country — treaty relief through the France–source country treaty may or may not apply to French Polynesia residents.

The United States taxes its citizens on worldwide income regardless of where they live. Moving to French Polynesia does not end your US tax filing obligation. This is the fundamental difference between American expats and citizens of every other major country — and it requires a separate layer of planning.

The US–France Tax Treaty: Does It Apply?

The United States and France have a comprehensive income tax treaty, but its application to French Polynesia is not straightforward. French Polynesia is an overseas collectivity of France with its own tax administration (the DICP) and its own tax laws — it is not part of metropolitan France for tax purposes. Whether the US–France treaty extends to French Polynesia is a question that has not been definitively resolved in published IRS guidance. You should confirm this with a qualified US international tax adviser before relying on any treaty position. In practice, most Americans in French Polynesia plan around the FEIE rather than treaty relief.

The Foreign Earned Income Exclusion (FEIE)

The more reliable tool for most Americans living in French Polynesia is the Foreign Earned Income Exclusion (FEIE) under IRC Section 911. For tax year 2025, the exclusion allows you to exclude up to $130,000 of foreign earned income from US federal income tax. For tax year 2026, the limit rises to $132,900 per qualifying person, adjusted annually for inflation.

• ›Earned income only: The FEIE applies to wages, salaries, and self-employment income earned while your tax home is abroad. It does not cover passive income — dividends, interest, capital gains, pensions, or rental income remain taxable by the US (though you may claim a Foreign Tax Credit for any taxes paid locally).
• ›Qualification tests: You must meet either the Bona Fide Residence Test (being a bona fide resident of a foreign country for an uninterrupted period covering an entire tax year) or the Physical Presence Test (being physically present in a foreign country for at least 330 full days in any 12-month period).
• ›Self-employment tax still applies: The FEIE reduces income tax but does not eliminate US self-employment tax (15.3%) on net self-employment income. This is a significant cost for freelancers and sole traders.
• ›FBAR and FATCA reporting: Americans with foreign bank accounts exceeding $10,000 must file an FBAR annually. FATCA reporting thresholds apply to foreign financial assets. French Polynesian banks participate in CRS, and account information is exchanged internationally.

If you live in French Polynesia and are a tax resident there, you do not need to take any action in relation to the OECD Common Reporting Standard (CRS). You are officially entitled to hold accounts abroad and receive capital income tax-free.

Your home tax authority in French Polynesia will be known to your banks. Even if information is exchanged, you have nothing to fear from the authorities — because you are not evading taxes.

Problems can arise, however, if you distribute capital income to French Polynesia and fail to declare it in your tax return. If this comes to light as a result of information exchange, you could face serious consequences. The CRS is not a threat to legitimate residents — it is a threat to those who are not genuine residents but are using the address to conceal income.

Upon arrival in French Polynesia, EU citizens do not need to take any additional steps. Entry requires no prior application for a residence permit or visa. Only after 3 months must you apply for an extension of stay — which is a straightforward administrative process at the local town hall.

Non-EU citizens must ensure their long-stay visa is in order before arrival and apply for a titre de séjour promptly after arriving. Driving licences from EU countries are valid in French Polynesia. Non-EU licences may need to be exchanged for a French Polynesian licence after a period of residence — check with local authorities.

We offer comprehensive tax and legal support for your relocation to a tax-efficient country. We follow a proven process — and where the country requires it, we involve our local partner firm on the ground, while remaining responsible for overall coordination.

The results speak for themselves: we have helped over 100 entrepreneurs and business owners significantly reduce their tax burden. Careful planning, thorough advice, and comprehensive support are our standard. Legally sound structuring within the framework of international tax law is our highest priority.

Our services typically include one or more of the following:

Our fees are generally billed on a time basis; fixed prices apply for certain services such as company formation.

As a first step, we recommend booking a consultation to discuss your plans — by phone, Zoom, or Signal. Together we find the best approach and establish contact with our local partner. As project coordinator, we keep all the threads in hand that are necessary for the successful implementation of your plans.