What the ETNC list actually is
The French non-cooperative states and territories list (États et territoires non-coopératifs, ETNC) is defined in Article 238-0 A of the French tax code and fixed by an annual arrêté signed by the Ministers of Finance and Foreign Affairs. A jurisdiction goes on the list when it fails to honour information-exchange obligations with the French tax authorities, when it sits on the EU "blacklist" and has not been withdrawn, or when the OECD Global Forum rates it as non-compliant. The list is public, short (typically 10 to 14 jurisdictions), and updated each year. The consequences apply automatically once the arrêté is in force, French counterparties (banks, notaires, insurers, representatives) check the list before every deed.
Applicable rates in 2026
The baseline non-resident regime applies 19% income-tax CGT and 17.2% social charges on the gain after tapers. If the seller is resident in an ETNC jurisdiction, Article 244 bis A substitutes a 75% flat rate for the 19% layer, calculated on the gross taxable gain, with none of the usual holding-period taper applying to that layer. The 17.2% social-charge layer continues to follow its own taper (zero at 30 years), and the progressive surtax on large gains stacks on top of the 75% where applicable. The representative fee remains standard (0.4% to 1% of sale price), the escrow retention typically jumps from 5% of the tax to 100% of the exposure, because the firm carries joint-and-several liability on a much larger number.
View data as table
| Layer | Rate |
|---|---|
| Standard CGT (non-resident) | 19% |
| Social charges (CSG, CRDS, prélèvement de solidarité) | 17.2% |
| ETNC flat rate (seller resident in a listed jurisdiction) | 75% |
Treaty carve-outs that can disapply the 75%
A French tax treaty in force with an ETNC-listed jurisdiction sometimes protects residents of that jurisdiction from the 75% flat rate, provided the treaty contains an unrestricted information-exchange clause and a non-discrimination clause. The French administrative case law on this point (Conseil d\'État, several decisions between 2016 and 2022) has accepted treaty protection for Panama residents in several real-estate cases, rejected it for British Virgin Islands companies where the underlying beneficial ownership was opaque, and issued nuanced rulings on the Bahamas. The rule of thumb: if you hold the property directly as a natural person and your residence certificate is clean, the treaty argument is strong; if you hold through an offshore entity, expect to lose the argument. Ask the accredited representative to obtain a written rescrit fiscal before the deed, not after.
Worked example: a Panama-resident seller in Paris
Isabella is a Panama tax resident, Panamanian national, holder of a cédula issued in 2015. She owns a Paris studio outright, bought in 2016 for €340,000, spent €24,000 of notarial fees at purchase and no material works since. She sells in 2026 for €510,000. Her share is €510,000, well above €150,000, so an accredited representative is required. Gross gain: €146,000 (€510k minus €340k minus €24k). Under the baseline regime, the tax would be roughly €17,600 income-tax CGT plus €20,700 social charges plus a small surtax, totalling around €39,000. Under the ETNC regime applied at face value, 75% of €146,000 is €109,500 income-tax CGT alone, plus the 17.2% social charges on the taper-reduced base, plus surtax, totalling about €130,000. Isabella asks the representative to seek a rescrit citing the 1995 France-Panama treaty and her clean personal cédula; the non-resident tax office grants the carve-out, and the deal closes at the baseline figures. Without the rescrit, the notaire would have blocked the wire.
One rare tip if you are close to the list
Watch the EU "blacklist" of non-cooperative jurisdictions, revised by the ECOFIN Council twice a year (February and October). A jurisdiction added to the EU list usually lands on the French ETNC list at the next annual arrêté, with a six to twelve month lag. If your tax residence has just been added to the EU list and you are mid-sale, accelerate the compromis and the deed to close before the French arrêté is updated, or add a seller-side rescission clause that triggers if the French list changes. The accredited representative tracks this for you, your notaire does not.
Pitfall to avoid
Do not rely on an "offshore tax adviser" who promises to "solve" the ETNC problem by routing the sale through a Luxembourg or Dutch holding at the last minute. The French non-resident office sees these interpositions as abuse of rights (Article L.64 LPF), applies the 75% rate regardless, and adds a 40% to 80% penalty on top. Accredited representatives refuse the mandate once they see such a chain. The only clean routes are: sell as a natural person with a valid residency certificate and invoke the treaty, or relocate your tax residence well before the sale, at least 24 months ahead of the compromis.
Key takeaways
- Accredited representative still mandatory above €150,000 per seller.
- 75% flat rate replaces the 19% income-tax CGT on the gross gain for ETNC-listed residents.
- Tax treaties in force can disapply the 75%, subject to a written rescrit.
- The list is updated by annual arrêté, check it at the compromis and again at the deed.
- Last-minute interposition structures trigger abuse-of-rights penalties, avoid them.
Frequently asked questions
Which jurisdictions are on the French ETNC list right now?
The list is published by arrêté and refreshed roughly once a year. As of the latest decree in 2026, the listed jurisdictions include (illustrative, not exhaustive) Anguilla, the Bahamas, the British Virgin Islands, Fiji, Palau, Panama, the Seychelles, Trinidad and Tobago, and Vanuatu. The arrêté is the authoritative text, your accredited representative pulls it at the compromis and again the week of the deed.
Does a tax treaty override the 75% flat rate?
Sometimes. If France has an active tax treaty in force with the listed jurisdiction that contains a non-discrimination clause and an information-exchange provision honoured in practice, the French Conseil d'État has held the 75% cannot apply. Panama is the classic case where treaty protection has disapplied the punitive rate historically. The representative must obtain a written position from the non-resident office before relying on it, not assume it.
Does the representative requirement still apply if the 75% flat rate kicks in?
Yes, and it applies more strictly. The accredited representative is jointly and severally liable for the entire French tax, which at 75% of the gross gain is a meaningful exposure. Most accredited firms will require a prior escrow equal to the full liability before accepting the mandate, because the usual 5% to 10% guarantee retention on the escrow does not cover a 75% exposure.
What if my home country is added to the list between the compromis and the deed?
The rate applicable is the one in force on the date of the acte authentique, not the compromis. A late addition to the arrêté can retrigger the 75% even if the deal was structured under the baseline 19%. Build a specific clause into the compromis allowing the seller to rescind or renegotiate if the ETNC list moves, your notaire will not do it by default.