France and the Netherlands: tax on an Indian fund
France taxes payouts and sale gains at a flat rate and wants every foreign account listed. The Netherlands taxes an assumed return on your January 1 value. Here are the rules, figures and open points.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on November 5, 2026.
France and the Netherlands both tax an Indian fund in euros, differently. Our Canal-and-Seine Proof Folder holds the records for both. Your adviser there files; we work alongside. See the countries guide and our Indian CPA page.
- France: a flat 31.4% (12.8% income tax plus 18.6% social levies) on 2026 income and 2025 gains. Payouts in 2025 bore 30% or 31.4%, depending on how levies were paid.
- Form 3916 lists every foreign account: EUR 1,500 per missing account, and a 10-year look-back instead of 3 (not if balances stayed at EUR 50,000 or less all year).
- Netherlands: box 3 (the Dutch category for savings and investments) taxes an assumed return on your January 1 euro value at 36%.
The numbers
| Item | Rule | Year |
|---|---|---|
| French flat tax | 12.8% plus 18.6% levies is 31.4% | 2025 gains, 2026 income |
| French treaty credit, payouts | Up to 10% of gross, if a treaty dividend | 2025, 2026 |
| Dutch assumed return | 5.88%, then 6.00%; rate 36% | 2025, 2026 |
| Dutch tax-free amount | EUR 57,684, then EUR 59,357 | 2025, 2026 |
| Dutch deadline and penalty | 2025 return usually due May 1, 2026; penalty up to 100%, or 300% for box 3 income | 2025 |
Invented examples
France, 2026, assuming each amount converts at the rate on its own date: 1,000 units bought for INR 500,000 in March 2022 (EUR 6,024.10 at INR 83) and sold for INR 900,000 in June 2026 (EUR 9,000.00 at INR 100). The gain is EUR 2,975.90: 80% in rupees, 49.4% in euros. Tax and levies are about EUR 934.
Netherlands, 2025: EUR 80,000 of units and EUR 20,000 of savings on January 1 give an assumed return of EUR 4,978 (274 + 4,704), box 3 income of EUR 2,106.69 after the tax-free amount and tax of about EUR 758. If the units fall to EUR 76,000 and savings earn EUR 300, the real return is minus EUR 3,700, set at nil.
On the return
- France: payouts go on Form 2047 and line 2TS; gains usually on Form 2074. The treaty leaves an ordinary small holder's gain to France; French guidance says it covers the CRDS social levy but not the CSG.
- Netherlands: the return guide points to the European Central Bank rate of January 1; the price date for unlisted units is not set.
Our checklist
The Canal-and-Seine Proof Folder:
- List each foreign account opened, used or closed in the year.
- Record purchase and sale dates, January 1 and December 31 euro values, and the exchange rate source.
- Keep payouts, interest and Indian tax statements.
Common questions
Must I list an Indian bank or demat account in France?
Yes, bank and demat (securities holding) accounts clearly belong on Form 3916. A folio held directly is not settled.
Can I be taxed on my real return in the Netherlands?
Yes, if it is below the box 3 income; from tax year 2025 the claim goes in the return itself. A negative result is set at nil, not carried over.
Will the Dutch rules change?
A law taxing actual returns is planned, now aimed at 2029, but it is not law.
Official sources
- Impots.gouv: Investment income and social levies
- Legifrance: Code general des impots, article 1736 (fines)
- Impots.gouv: Form 3916
- Impots.gouv: France-India treaty text
- BOFiP: Treaty guidance on social levies
- Belastingdienst: Box 3 income 2025
- Belastingdienst: What is my actual return
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