What is the risk to overseas bank account holders if they do not declare it?

For many French people who have bank accounts abroad, it is important to remember that it is mandatory to report them when declaring their income to the tax office. In fact, this organization ensures that this status is respected.

In fact, if a taxpayer fails to declare their assets in bank accounts abroad, they are at great risk. In fact, it faces a fine of 1,500 euros per account and a fine per year for non-compliance, which can rise to 10,000 euros if the country does not have an information exchange agreement with France. Or, the taxpayer shows an increase of 80% on assets in an undeclared account (the amount cannot be less than 1,500 euros).

If an overseas account owner cannot justify the origin of his assets, he risks taxation of up to 60%, a sanction that “ To be used only as a last resort and when the situation warrants it », reported by Les Echos, referring to Sabine Portela, National Secretary of the Solidaires Finance Public Union. In addition, Le Monde points out that in case of non-disclosure of a bank account abroad, its owner faces a tax adjustment in ten years.

Foreign accounts in the tax office’s crosshairs

Despite the closure of the service for processing corrective declarations, which made it possible to regularize 35 billion euros in 4 years, the tax administration remains vigilant. Indeed, this recognition of foreign accounts is done in different ways, as Les Echos points out.

Real estate wealth tax (IFI) restrictions are certainly one of these. “ It is also common to make requests regarding accounts held outside of France », explains Camille Girodon, wealth management consultant at Culture Patrimoine Family Office.

For his part, a heritage engineer contacted by Les Echos suggested that it is thanks rather to the cooperation of other countries that the French tax authorities have identified numerous bank accounts abroad. “The tax service was aware of their existence, perhaps as part of international cooperation,” That explains.

Data exchange confirmed by Sabine Portella. Capital says that between 2019 and 2022, the number of cooperating countries has practically doubled. Moreover, the Tax Office has a file called “EVAFISC” which acts as a database that can directly contact taxpayers, inviting them to regularize their status, especially when necessary.