Income tax returns, advance payments, withholding tax, overtime, nursing home residence abroad… Every year, cross-border taxpayers face unique tax situations.

To help you navigate these complexities, we’ve answered — with input from the tax authorities — the most frequently asked questions from cross-border workers. Concrete answers, based on official regulations, to help you file your taxes properly and avoid unpleasant surprises.

Overtime in Luxembourg: Is it eligible for French tax exemption?

“I work in Luxembourg and live in France. My overtime is tax-exempt in Luxembourg. Do I still need to declare it in France? Does it qualify for the French overtime tax exemption?”

This is a common question among cross-border workers — but the answer is no.

In France, overtime can be exempt from income tax, but only if performed under French labor law. A work contract governed by Luxembourgish law does not qualify for this exemption, even if you live in France.

In practice: Overtime worked in Luxembourg must be declared in France. It does not benefit from the favorable French tax exemption regime.

Good news: These earnings are not taxed twice. They are included when calculating the French tax credit equal to the French tax, which prevents double taxation.

In practice

Report your gross income, including overtime, as stated on your Luxembourg salary certificate.
Taxes paid in Luxembourg are not deductible.
Overtime amounts are included in your reference taxable income (RFR) in France.

Contemporary advance payments: how to adjust or cancel them?

“I receive foreign income subject to advance payments (for example, teleworking taxable in France for a foreign employer). How can I adjust these payments if my situation changes? Is it automatic?”

No, adjustments to advance payments are not automatic.
Good news: You can adjust them yourself at any time on impots.gouv.fr in the “Manage my withholding tax” section > “Manage my advance payments”.

You have three options:

  • Create an advance payment: if you start receiving new income (e.g., rent, self-employment).
  • Delete an advance payment: if you no longer receive the corresponding income (e.g., ceased activity).
  • Modify an advance payment: if your income changes significantly.

Your advance payments are also recalculated:

  • After submitting your annual income tax return,
  • Or if you change your withholding rate or family situation (e.g., marriage, birth).

Withholding tax: Changing your bank account is possible!

“I receive foreign income taxable in France with an advance payment. How do I change the bank account used for the withdrawals?”

It’s very simple! Log into your personal space on impots.gouv.fr > “Manage my withholding tax” > tab “Update my bank details”.

📅 Important: To be effective from the following month, the update must be made no later than the last day of the current month.

One bank account per tax household. Make sure your information is up to date, especially if you’ve changed banks.

Nursing home abroad: declarations are now simpler

❓ The question
“My relative lives in a nursing home (EHPAD) located abroad. How do I declare the associated costs in my tax return?”

✅ The answer
As of this year, the online tax declaration finally allows you to enter a nursing home address located outside France!

When filing your return:

  • Provide the identity of the person housed.
  • Enter the country where the institution is located.
  • Leave the French address fields blank.

🚫 Do not fill in the “department”, “municipality”, or “street” fields if the facility is abroad. Only the international address is needed.

You may also report the amounts paid to the institution — just like for French EHPADs — to benefit from a tax reduction, provided the eligibility conditions are met.