Which French Income Still Bears the Social Levies Once You Live in Israel

Once your fiscal residence moves to Israel, the French social levies narrow sharply. They keep reaching French property income and property gains. They stop reaching your French savings and securities altogether: assurance-vie, PEA withdrawals, dividends, Livret A interest, epargne salariale. Almost every French-language guide you will find describes the resident position, not yours.

This page is the map, not the rate card. It answers one question: once you are fiscally domiciled outside France, which French-source income the prelevements sociaux actually reach, and why the exemption that a friend in Lisbon or Zurich enjoys stops short of you. The rates on the income that *is* caught and the property-sale arithmetic belong to the rental-property article in this module, and the exemption paperwork appears here only so you can recognise guidance that was written for somebody else.

Which French income still bears the social levies once Israel is your fiscal residence?

Three categories, and nothing else on the list. The fiche published by service-public.gouv.fr, DILA (Premier ministre), carries two separate sets of tables on the same page, one for French tax residents and one for non-residents, and the non-resident branch, verified 30 June 2026, marks unfurnished letting, furnished letting and gains on property and on movable goods as subject, and every savings and securities line as not subject ³.

Two footnotes to that table, both of which catch people. First, the same page states that with a fiscal domicile outside France you may not *hold* a livret de developpement durable, a livret jeune or a livret d'epargne populaire at all ³, which is a different problem from a levy and worth checking against what is genuinely still open in your name. Second, the gains line splits three ways rather than two: immovable property is caught, movable goods are caught, and listed securities are not. No non-resident rate is published on that page for the movable-goods branch, so treat "subject" there as the whole of what is known.

Why doesn't Bituach Leumi buy the exemption a Lisbon or Zurich address would?

Because the exemption is written around a specific list of social security systems, and Israel's is not on it. Since 1 January 2019, people affiliated to a compulsory social security scheme in an EEA state other than France, or in Switzerland, are exempt from the CSG and the CRDS, and impots.gouv.fr states that British residents kept that exemption after Brexit ¹. Those revenues stay subject to a prelevement de solidarite, which that page put at 7.5% when it was last modified on 19 July 2023 ¹. Bituach Leumi (National Insurance) is neither an EEA scheme nor a Swiss one, so an oleh insured in Israel pays the full levy on the income that is caught.

This is the point where standard French guidance inverts for you, and where a lifelong Israeli reading over your shoulder would have nothing at stake. The whole architecture of the exemption is a coordination rule for people moving between EU social security systems. Your move took you out of that architecture rather than to a worse place inside it.

Two wrinkles are worth naming rather than smoothing over. The two publishers state the test differently: the impots.gouv.fr non-resident FAQ and service-public.gouv.fr's non-resident branch both frame it as an *affiliation* test ¹³, while a third page on impots.gouv.fr, the one on property sales, modified 27 January 2026, frames it as a *residence* test, saying that residents of states outside the EU, the EEA and Switzerland owe the levies ⁴. An oleh fails both tests, so the outcome is the same either way, and there is no reason to assume a single unified rule. Separately, the UK carve-out appears on impots.gouv.fr ¹ but not in service-public.gouv.fr's non-resident list ³. Immaterial for Israel, but it tells you how far these pages can drift from each other.

Did the European court settle whether France may draw that line at the EEA?

It did, against the taxpayer, in 2018. In Case C-45/17, judgment of 18 January 2018, the Court of Justice held that Articles 63 and 65 TFEU do not preclude a member state charging levies on the asset income of its own national who resides in a third country outside the EEA and Switzerland and is affiliated to a social security scheme there, while an EU national covered by another member state's scheme is exempt by reason of the single-applicable-legislation principle in Article 11 of Regulation (EC) No 883/2004 ⁵.

The profile matters. The applicant was a French national who had lived in China since 2003, worked there, and was affiliated to a *private* social security scheme in China ⁵. The judgment also records that the earlier refund arrangements were confined to people affiliated to a scheme of another EU, EEA or Swiss state, expressly excluding people affiliated in a third country ⁵.

One limit, and it should not be stretched. The operative part is framed for a national of the member state concerned who resides in a third country. An oleh who holds French property but is not a French national sits outside the ruling's literal terms, though the French administrative exclusion catches them anyway. Read the case as closing the free-movement-of-capital argument for a French national who moved to Israel, and no further.

Does the 1965 France-Israel social security convention offer a way in?

No, and the reason is structural rather than a matter of interpretation. CLEISS, the French administration's own liaison body for international social security, publishes the France-Israel social security convention of 17 December 1965, with an administrative arrangement of 25 May 1967, in force from 1 October 1966, covering salaried workers who are nationals of a contracting state ⁶. Its decisive line, for this question, is that the convention provides no coordination in sickness insurance and none in invalidity insurance ⁶. Unemployment insurance is outside its scope too ⁶. What it does cover is old-age and survivors' benefits, work accidents and occupational diseases, and aggregation of insurance periods for maternity, death and family benefits ⁶.

So there is no sickness-insurance coordination hook to hang a CSG argument on, and that hook is exactly what the EEA exemption uses. No French administrative text extends the exemption beyond the EEA, Switzerland and the UK on the strength of a bilateral convention with a third country, and no decision either way was found. That CLEISS page carries no publication or revision date; it was checked on 22 August 2026.

Will Israel credit the CSG and the CRDS against Israeli tax?

This is genuinely open, and worth distrusting anyone who states it flatly in either direction. The DGFiP publishes a consolidated *reading version* of the France-Israel tax convention, signed at Jerusalem on 31 July 1995, approved by loi n° 96-503 of 11 June 1996 and in force from 18 July 1996, as modified by the Multilateral Convention in force for both states from 1 January 2019 ⁸. That file says on its own first page that it does not substitute for the authentic texts.

Article 2(3) opens by saying the current taxes to which the Convention applies are *notamment* the ones listed, so the list is expressly non-exhaustive ⁸. On the French side it names l'impot sur le revenu, l'impot sur les societes, la taxe sur les salaires and l'impot de solidarite sur la fortune, together with withholdings and advances on them, collectively "l'impot francais" ⁸. The CSG, the CRDS and the prelevement de solidarite are not named. Article 2(4) then extends the Convention to taxes of an identical or analogous nature established after signature ⁸, and Article 23(2) gives Israel a credit for l'impot francais against Israeli tax on the same income, capped at the fraction of Israeli tax attributable to it ⁸.

Two dated facts sit next to each other without resolving anything: the Convention was signed on 31 July 1995 ⁸, and the CRDS was created by Ordonnance n° 96-50 of 24 January 1996 ³. That engages Article 2(4) rather than answering it, and no published French or Israeli position settles it.

There is a more immediate reason the credit question may be academic for you right now. The Israel Tax Authority's explanatory document on Amendment 168 to the Income Tax Ordinance, published on 16 September 2008 with retroactive effect from 1 January 2007, describes an exemption from Israeli tax on foreign-sourced assets and income for ten years from the date you became an Israeli resident, listing rent alongside salary, business, interest, dividends, royalties and capital gains on assets sourced abroad ¹⁰. If you are inside those ten years, there is no Israeli tax on the French income for a foreign tax credit to offset, so a French levy is an unrelieved cost rather than something you eventually claw back. In year eleven the credit question becomes live, which is the reason to know it is unsettled rather than to assume an answer. Keep one distinction straight while you are still inside the window: exempt from tax is not exempt from reporting. gov.il states that olim who arrived as of 1 January 2026 must report income earned abroad, and that the newer graduated exemption covers income earned through personal effort, not passive income such as rent, interest or dividends ⁹.

What does the switch look like for one household?

Take a couple who left Paris for Israel and kept five French things: a Bordeaux flat let unfurnished at, say, 950 euros (EUR) a month, an assurance-vie contract, a PEA, an old PEL with its CEL, and a French retraite. Nothing about those holdings changed. Their residence did, and the social-levy answer flips on four of the five.

For a sense of the size of that flip without treating it as a rate card: on the resident branch of the same fiche, placement income runs at 17.2% for 2025 income and 18.6% for 2026 income in the general case, with assurance-vie, PEL and CEL staying at 17.2%, all as of 30 June 2026 ³. Those are resident figures, they are re-set by the annual loi de financement de la securite sociale, and they are quoted here only to show what the non-resident answer replaces. Whether the 950 EUR of rent is let furnished or unfurnished decides which of two different non-resident rates applies to it, and both of those belong to the rental-property article, which carries them with their own as-of dates and a worked euro example.

What the table shows is worth stating plainly, because it is counter-intuitive and because it is the opposite of what you will read on a French resident's forum: aliyah made the property line worse and made the portfolio lines disappear. On the shekel (NIS) side, if you are inside your ten-year window none of it is taxed in Israel anyway ¹⁰, which means these French charges are the whole bill rather than a credit against something.

What about the pension, and what about the sale?

Both are owned elsewhere in this module, and both are easy to get wrong by analogy from this page. The pension first. Social contributions taken on salaries, pensions and rentes are not creatures of the tax code, which is why they sit outside the fiche this page maps, and the pension article in this module sets out where a claim about them goes ¹. What completes the map here is the CLEISS position: once your fiscal residence is no longer in France you pay neither CSG, CRDS nor Casa on a French pension, and a health-insurance contribution is withheld in their place only if you remain a la charge d'un regime francais ⁷. That contribution is set through the annual social security financing law and the page carrying it is undated, so ask the caisse that pays you for the current figure rather than trusting a number found online. Note too that the 1965 convention gives no entitlement to reimbursement of care received in Israel ⁷.

On the sale, one boundary sentence and no more: a non-resident's French property gain carries a 19% prelevement and, *separately*, the prelevements sociaux ⁴. Those are two charges, not one, and reading the levy figure alone understates the bill by a wide margin. The rental-property article sets out the sale route properly, with the holding-period reductions and the figures.

Does any of this change the PFIC position for a US-citizen oleh?

Not at all, and the two questions should never be run together. For a US citizen or green-card holder, the funds sitting inside a PEA or an assurance-vie are passive foreign investment companies: reported on Form 8621 and taxed by default under the punitive section 1291 regime, with the French wrapper providing no US shelter because the IRS looks straight through it to the underlying funds. France ceasing to charge social levies on those wrappers once you are a non-resident is a French answer to a French question, and it changes nothing on the US side. This site covers the regime and the clean-up routes in separate articles, and this page does not restate them. UK, Canadian, South African and Australian olim generally do not face PFIC at all, because their home-country obligations end through residency rules rather than continuing on citizenship.

Where do you check this, and what does the exemption machinery look like?

Check the non-resident branch of service-public.gouv.fr's fiche F2329 ³, and make sure you are reading that branch and not the resident one on the same page. The two sets of tables give opposite answers for savings and securities, and the resident answers are what most third-party guidance quotes.

As for the machinery, it is worth recognising precisely so you stop looking for it. The CSG and CRDS exemption is claimed by ticking box 8SH or 8SI, under the heading "8 - Divers", on the declaration 2042 C, with box 8RF for unfurnished letting where only one spouse of a married or PACSed couple qualifies ¹². Affiliation must be effective at 31 December of the income year ¹. If it was not claimed on the return, the route is a reclamation contentieuse to the Service des impots des particuliers non-residents ¹, and claiming on the return means the acomptes from the September following it are computed without the levies, with the solidarity levy collected at the final assessment ¹².

None of that is yours. An oleh insured by Bituach Leumi does not qualify, so ticking 8SH is not a shortcut, it is an incorrect return. Knowing what the boxes are for is useful mainly so you can tell when guidance written for a French expatriate in Belgium or Ireland has been handed to you by mistake.

Frequently asked questions

Once your fiscal residence moves to Israel, the French social levies narrow sharply. They keep reaching French property income and property gains. They stop reaching your French savings and securities altogether: assurance-vie, PEA withdrawals, dividends, Livret A interest, epargne salariale. Almost every French-language guide you will find describes the resident position, not yours.