Moving to Dubai: can I keep my accommodation in France?
Summary
Introduction
Yes, you can keep a property in France after moving to Dubai, and no French tax rule requires an expatriate to sell their real estate before leaving. The nuance lies elsewhere: a property retained is never neutral in the analysis of your tax residency, and it becomes a significant indicator when it remains at your permanent disposal or houses your family.
The difficulty lies in a widespread confusion between property ownership and home. Owning an apartment rented to a third party under a long-term lease says almost nothing about where you live, whereas a house that is kept furnished, heated, and ready to welcome you year-round tells a different story. Neither the tax authorities nor tax treaties stop at the title deed; they consider the actual use of the dwelling .
This article addresses the issue of retained housing from the perspective of tax residency. Topics specific to professional activity, such as invoicing from the Emirates or permanent establishment, are covered in our article on continuing to work with French clients , to which we refer rather than repeating them.
The thresholds, rates, and schemes mentioned here are general guidelines, subject to change and should be verified on a case-by-case basis . They never replace an examination of your personal situation; only an individual assessment can determine the appropriate course of action.
Property, home, residence: three distinct concepts
Article 4 B of the French General Tax Code establishes four alternative criteria for tax residency: the home, the principal residence, the principal professional activity, and the center of economic interests. The first of these, the home, refers to the place where the individual and their family normally live, that is, the center of their family interests , regardless of temporary stays related to work or holidays. Meeting only one of these four criteria is sufficient to maintain French tax residency.
This definition explains why owning property in isolation is not enough to bring you back under French tax jurisdiction. Tax residency is determined based on a range of factors, of which housing is only one element: the family's place of residence, length of stays, location of business activity, and the source and management of income. Real estate only carries significant weight when combined with other ties to France.
A property is not automatically a home
An investor who owns three rental apartments in Lyon and lives in Dubai with his family has no primary residence in France, since none of these properties are reserved for him. The situation is reversed for a single expatriate who keeps his Parisian apartment vacant, leaves his personal belongings there, and returns every month. The former owns real estate , while the latter maintains a readily available place to live.
This distinction structures the entire argument that follows, and it is the one we examine first in our tax relocation consulting services in Dubai . The relevant question, therefore, is not whether you own property in France, but who occupies it and under what conditions .
Rent, leave empty or occupy temporarily
Three scenarios consistently occur, each with distinct consequences. A property rented unfurnished under a long-term lease falls outside your personal sphere of use, as a tenant occupies the premises and you can no longer freely return: the household occupancy index becomes low . A property rented furnished seasonally occupies an intermediate position, depending on the specific circumstances and duration of the rental periods.
The third scenario is the most complex: an empty apartment. A furnished, insured apartment with active subscriptions and where your belongings are stored remains, in the eyes of an inspector, a dwelling available at all times . The fact that you don't sleep there twelve months a year does not change this availability.
The accommodation is kept vacant all year round
Maintaining a pied-à-terre is neither forbidden nor suspicious in itself, and many expatriates do so for perfectly legitimate family reasons. The key point of concern lies in combining this with other ties: very active bank accounts, a vehicle registered in France, ongoing subscriptions, and an address maintained with government agencies. A pied-à-terre alone is insufficient, but when combined with other assets, it reinforces a presumption of French residency .
Renting to a relative: a false good idea
Renting your property to a relative or friend for a nominal rent, without a formal lease or any real financial transaction, is a shaky arrangement. If the rent is never collected, if the property remains furnished with your belongings, and if you stay there as you please, this rental will be perceived as a flimsy facade . A proper lease, at market price, and correctly declared is far better.
The permanent home in the France-Emirates convention
The tax treaty concluded between France and the United Arab Emirates in 1989 applies when both states consider you to be residents of each other. It then applies successive rules for determining residency, in a specific order: permanent home, then center of vital interests, then habitual residence, and finally nationality. The residence maintained in France falls precisely under the first of these rules .
An expatriate who maintains an apartment in France and rents accommodation in Dubai has a permanent residence in both countries, thus negating the first criterion and shifting the analysis to the next. The center of vital interests then becomes decisive, weighing family, social, professional, and financial ties. It is this shift in perspective that we anticipate in our support services for tax residency transfers to Dubai .
What a permanent home means
The concept of permanence refers to the continuous availability of the dwelling, not to the frequency of occupancy. A property furnished for long-term use, which you can occupy at any time without needing anyone's permission, is considered permanent in the conventional sense, even if you only spend three weeks there per year. A property rented to a third party for several years, on the other hand, ceases to be at your disposal .
The actual time spent in French accommodation
The criterion of principal residence focuses on the length of stay in the territory, compared to the time spent in other countries. This is the origin of the famous 183-day rule, often cited as a magic threshold, even though it is neither necessary nor sufficient on its own, as we explained in our article on the 183-day rule and tax residency in Dubai . A stay of less than six months can perfectly well coexist with French tax residency maintained by another criterion.
Having a fixed address makes this accounting more sensitive, because it allows for long and repeated stays without leaving any trace of hotel stays. The best practice is to keep a log of your presence, based on boarding passes, bank statements, and energy consumption records from your French residence. This log is used far more often to reassure your neighbor than to defend yourself .
What a retained dwelling costs in France in tax terms
Owning property in France has tax consequences that are unrelated to residency and are cumulative with it. Rental income from French sources remains taxable in France regardless of your residency, in accordance with the applicable tax treaty, with a minimum tax rate of 20% up to a certain threshold of net taxable income. This minimum rate can be waived if you can demonstrate that the average tax rate resulting from your worldwide income would be lower than this threshold .
In addition, there is a 7.5% solidarity levy, which replaces the CSG and CRDS social security contributions for individuals affiliated with a social security system in another European Economic Area country or Switzerland. Expatriates residing in the United Arab Emirates are not exempt from this levy and, in principle, remain subject to social security contributions at the standard rate on their French real estate income. This difference in treatment often raises eyebrows, and it is one of the reasons why some executives first compare a transfer of tax residence to Portugal before making a decision.
Local taxes, vacant housing and real estate wealth tax
Property tax remains payable by the owner, and the housing tax continues to apply to second homes, with possible surcharges in high-demand areas determined by the municipalities. A property left vacant may also be subject to the tax on vacant dwellings, depending on the municipality and the length of vacancy. These local taxes reveal nothing about your tax residence, but they do influence your decision-making process each year .
The French real estate wealth tax follows a similar logic: a non-resident remains liable for it on their real estate assets and rights located in France, beyond the threshold of €1.3 million in net taxable value. Moving to Dubai therefore reduces the tax base to only French assets, without eliminating it entirely if the remaining real estate holdings are substantial.
The sale of the property deserves particular attention, as the capital gains tax exemption for a primary residence only applies if the property retains its primary residence status on the day of sale. A property that becomes a secondary residence after departure falls under the capital gains tax regime for non-residents, with a 19% tax rate, social security contributions, and allowances based on the length of ownership. A specific partial exemption scheme exists for non-residents, subject to strict time limits and ceilings, and should be calculated before departure .
The table below summarizes the configurations we most often encounter and the interpretation that is generally made of them.
Housing situation | Reading from the perspective of tax residence | Key point of vigilance |
Sold before departure | No indication of a French home | Capital gains and asset arbitrage |
Rented unfurnished, long-term lease | Low index, property now suitable for rental. | Taxable rental income in France |
Rented as a furnished seasonal rental | Low index if actual rental | Periods of personal use to be tracked |
Left empty, furnished, available | Probable permanent home | Dispute resolution by tax treaty |
Occupied by spouse and children | Strong indicator of French household | French residence often maintained |
Loaned free of charge to a relative | Case-by-case analysis | Prove the absence of personal disposition |
No line in this table constitutes an automatic conclusion. Each situation combines several criteria, and a favorable housing arrangement can be neutralized by a professional or family connection remaining in France.
The accommodation occupied by the spouse or children
This is the most precarious aspect of expatriation, far more so than property ownership itself. When the spouse and children continue to live in the French residence, the household, as defined in Article 4 B, remains in France, and the departure of the sole manager is generally insufficient to sever tax residency. Case law has long held that the household is the family's habitual residence .
Transitional situations exist and are perfectly justifiable: the end of the school year, lease termination notice, a spouse's delayed job transfer, or the sale of a property in progress. These situations must be limited in time, documented, and followed by the family's actual reunification in the Emirates. A delay of a few months is easily understood; a delay that continues year after year is interpreted as a deliberate lifestyle choice .
The broken fire, the most serious indicator
When a family remains in France permanently, the housing issue becomes secondary, as it is the family's presence that determines eligibility. Couples who are separated in fact, or those who deliberately maintain a residence in each country, must be able to demonstrate the reality of this arrangement with concrete evidence: school enrollment, leases, insurance policies, and utility bills. Otherwise, the administration will reclassify them as a single household that has remained French .
Documenting a preserved dwelling without jeopardizing its departure
Retaining accommodation is not a problem when it is part of a coherent application, compiled from the first year and not only when making an inquiry. On the Emirati side, the foundation consists of a residence visa, a lease agreement registered with the local authorities, utility bills, and a tax residency certificate issued by the Federal Tax Authority. These documents demonstrate that your daily life takes place in the Emirates .
From the French perspective, the approach is to reclassify the property in all the records where it appears. The insurance policy must specify a secondary residence, the declared tax address must be the Emirati address, banks and insurance companies must have registered the change of residence, and utility meters must reflect occasional occupancy. A French address still used as a primary address with third parties contradicts the rest of the file .
The documents to gather from the first year
We recommend organizing your documents into four categories: proof of residence in the Emirates, proof of departure from France, proof of use of the property you retained, and financial documents. The last category is often overlooked, yet it is crucial, as bank statements reveal in just a few pages where a person actually lives. Compiling this file takes only a few hours a year and avoids laborious reconstructions years later .
Sell, rent, or keep: a decision to be made before leaving
Arbitration should be planned before the date of departure, as some decisions become costly once the move is finalized. Selling before leaving allows, under certain conditions, the property to benefit from the tax regime for primary residences, while a subsequent sale falls under the non-resident regime. Renting offers a common compromise, largely neutralizing the argument of having available household space while retaining ownership of the property, at the cost of annual taxation on rental income in France .
Keeping the property empty remains an option, provided you are prepared to discuss the issue of permanent residence and strengthen the evidence on the Emirati side. This choice is justifiable for a single person or a couple without school-aged children, but much less so when several ties to France remain. We advise resolving the housing issue at the same time as deciding on the departure timeline , not afterward.
A useful reminder for business leaders: transferring your tax residence outside of France can trigger the exit tax on unrealized capital gains from securities, once certain thresholds are set based on the value of the shares or the proportion of profits held. While housing is not subject to this mechanism, the timing of the property sale and the departure often overlap. The same trade-offs, with different solutions, arise when transferring tax residence to Andorra .
Testimony of an expatriate executive in Dubai
A 44-year-old executive, a partner in an engineering consulting firm, moved to Dubai with his wife and two children the previous spring. He wanted to keep the family home they had bought in Haute-Savoie, to which the family was very attached, and planned to spend their summer holidays there. His question concerned the risks associated with keeping the house empty .
An examination of his situation revealed that the house itself was not the weak point in his case. Two other factors carried more weight: his French address remained his primary address with his banks and insurer, and his children were still enrolled at their former school for the current academic year, pending placement in Dubai. The house merely reinforced a body of evidence already pointing to France .
Three projects were completed in just a few months: updating addresses with all third parties, enrolling the children in an Emirati school for the following academic year, and taking out second-home insurance with a documented occupancy schedule. The house was retained, without being rented out, and the case became coherent. His comment at the end of the project aptly summarizes the situation: he had spent six months wondering whether to sell, when the real issue concerned everything surrounding the property .
Frequently Asked Questions
Can I keep my main French residence after I move to Dubai?
Yes, nothing prohibits it, but the property loses its status as your primary residence once your home is located in the Emirates. It becomes a secondary residence, with the corresponding consequences regarding property tax and capital gains, and it constitutes a permanent home within the meaning of the convention if you can occupy it at any time.
Should the property be rented to avoid any risk?
Long-term rental is the most transparent solution, as it makes the property unavailable to you. It's not mandatory, and many expatriates manage to keep a property empty without difficulty when the rest of their situation is sound. The best option depends on your individual circumstances.
How many weeks can I occupy my French accommodation each year?
There is no universally applicable numerical allowance. Stays in France are assessed based on the primary residence criterion and a comparison with the time spent in the Emirates, taking into account the other criteria of Article 4B. A documented schedule is better than a threshold remembered from memory.
Does paying property tax make me a French tax resident?
No. Property tax is levied on the property itself, not on the person, and a non-resident pays it exactly like a resident. It is neither a criterion of residence nor a significant indicator in the analysis.
Does my French property fall under the real estate wealth tax after my expatriation?
Yes, non-residents remain liable for tax on their real estate assets and rights located in France, above the threshold of €1.3 million of net taxable value. However, real estate assets held abroad are no longer subject to tax after a change of residence.
Do I need to declare my French rental income once I'm settled in Dubai?
Yes, French-sourced rental income remains declarable in France to the tax office for non-residents, with the application of the minimum 20% rate unless proof of a lower average rate is provided. This obligation is independent of your tax residence in the UAE.
Conclusion
Maintaining a residence in France after moving to Dubai is possible, common, and perfectly justifiable. The property itself never establishes French tax residency, but it becomes a powerful indicator when it remains permanently available or houses family members who stayed behind. The question, therefore, is not whether to sell or not, but rather the overall coherence of the situation .
Three key steps cover the essentials: deciding the future of the property before the termination date of your residency, updating the property's status in all registries where your address appears, and documenting periods of occupancy from the first year. This method requires no sham arrangements or fictitious addresses, only real assets and traceability, just as with a tax residency transfer to the Bahamas or any other jurisdiction.
Each situation is unique: household composition, children's schooling, the nature of the property, planned sale, assets remaining in France. These factors significantly alter the conclusions, and only an individual assessment can determine the outcome for your specific case.
You're preparing to move to Dubai and are unsure about the future of your French property. You can request a personalized assessment from Coreway Consulting to have your situation, timeline, and supporting documents reviewed.
