If you received income in 2024 in a currency other than euros, you need to convert it into euros to declare it on your French tax return. Here’s what you need to know about conversion rates, how to use them, and the method that the French tax authorities accept.
Understanding the Conversion Rate Requirement
While tax declarations for 2024 income aren’t due until mid-May to early June 2025 (exact dates still to be announced), it’s good to start preparing now. For tax purposes, you need to convert any foreign income into euros based on the exchange rate that applied on the day you received the income.
But what if you received multiple payments throughout the year, or if tracking the exact day of receipt isn’t practical? Don’t worry—the French tax authorities accept using an average exchange rate, making things easier for you.
Using Banque de France Rates for Accuracy
The official exchange rate for tax purposes should come from the Banque de France, the French central bank. Their rates are considered the most authoritative, but their website isn’t always the easiest to navigate. You can find daily exchange rates on the Banque de France’s site by clicking the relevant button to view rates for recent days and work backward.
Convenient Method: Using the December Month-End Average Rate
If you prefer not to search for daily rates, you can use the average exchange rate for the year. French tax officials allow taxpayers to calculate this by averaging the Banque de France’s month-end exchange rates for December of the year you’re filing for (e.g., December 2024) and the previous December (e.g., December 2023).
For example, if you received income in British pounds in 2024, here’s how to calculate the average exchange rate:
- December 31, 2024: £1 = €1.17764
- December 31, 2023: £1 = €1.15083
The average of these two rates is €1.18, which means you can convert your sterling amounts using this rate. So, for example: £100 = €118
Exchange Rates for Other Currencies
Here are some other commonly used exchange rates for 2024 income:
- 1 US Dollar = €0.93
- 1 Australian Dollar = €0.61
- 1 Canadian Dollar = €0.68
- 1 New Zealand Dollar = €0.56
You can apply these rates similarly to convert other foreign currencies.
Check for Updates in 2025
As tax deadlines approach, make sure to double-check the current rates and any updates to the tax law.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, financial, or tax advice. While we strive to ensure accuracy, tax regulations and exchange rate policies are subject to change, and interpretations may vary. Taxpayers are encouraged to consult a qualified tax professional or the French tax authorities for guidance specific to their situation. We accept no liability for any errors, omissions, or reliance on the information provided.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.