France applies social levies to many forms of passive income, and getting the breakdown right matters for overall tax planning. For French tax residents, most investment income is subject to 17.2% in social charges, composed of CSG at 9.2%, CRDS at 0.5%, and a 7.5% solidarity levy known as the prélèvement de solidarité. These charges apply in addition to any income tax due, including the 12.8% flat income tax under the “PFU” (prélèvement forfaitaire unique), often summarized as a 30% package when combined with the 17.2% social levies.

A key feature is partial deductibility: for certain income taxed at the progressive scale (rather than the flat tax), 6.8 percentage points of the CSG paid may be deductible from next year’s taxable income. This deduction generally does not apply if you keep the PFU. Some savings products, such as Livret A, LDDS, and LEP, are exempt from both income tax and social levies, making them useful cash reserves rather than investment vehicles.

Boutique fashion: how examples clarify the rules

Consider an investor who holds shares in a listed company that supplies materials to boutique fashion retailers. Dividends and interest the investor receives are treated as investment income, so the 17.2% social levies apply. If the investor chooses the PFU, these levies are in addition to the 12.8% flat income tax. If the investor opts for the progressive scale, the dividends may benefit from the 40% allowance, and a portion of the CSG (6.8 points) may be deductible the following year, subject to conditions. The underlying business activity (fashion or otherwise) does not change how the levies work for the shareholder’s passive income.

Online shopping and cashback: investment income?

Cashback and loyalty rewards from online shopping are typically treated as price reductions, not investment income. However, interest earned on bank accounts linked to those platforms, or returns from money-market or savings products accessed via a marketplace, are a different matter: interest is investment income and usually attracts the 17.2% social levies. If the bank applied a non-final withholding when you received the interest, the final calculation is reconciled in your annual return, and social levies are computed on the gross taxable gain.

Women’s clothing brands and dividends

If you hold shares in a women’s clothing brand, dividends are subject to social levies in the year they are made available to you. For residents, choose between the PFU (12.8% income tax + 17.2% social) or the progressive scale with potential allowances and partial CSG deductibility. If you invest through a PEA (Plan d’Épargne en Actions), gains are exempt from income tax after five years, but social levies still apply on gains realized upon withdrawal or closure. The timing and rate mechanics inside long-standing PEAs can be more intricate due to historical-rate rules, but for many newer accounts the standard 17.2% applies upon taxable events.

Ready-to-wear retail and rental or savings income

Profits from running a ready-to-wear shop are business income, not investment income, so a different set of social contributions applies via your professional regime. By contrast, passive income you might earn alongside that business—such as rental income from an apartment or interest on term deposits—generally falls under the investment-income social levies. For unfurnished rentals taxed in France, the net taxable profit (after allowable expenses or a micro-foncier allowance, if applicable) is typically subject to 17.2% social levies. For bank interest and bond coupons, the levies apply to the taxable interest. Life insurance (assurance-vie) gains are subject to social levies, usually deducted at the time of withdrawal; the income-tax treatment depends on contract age and chosen tax option.

Fashion trends and tax reforms since 2018

Since 2018, the standard resident rate for social levies on investment income has been 17.2%, structured as CSG 9.2%, CRDS 0.5%, and the solidarity levy 7.5%. Prior to that, components and totals shifted over time, but the current split has remained stable in recent years. Two frequent exceptions are worth noting: regulated savings accounts (e.g., Livret A, LDDS, LEP) remain exempt from social levies, and certain non-resident cases do not bear the full 17.2%.

Non-resident rules require care. Broadly, those who are not affiliated with the French social security system but receive French-source investment or property income may face different levies. For many residents of the EU/EEA or Switzerland who are affiliated to a social security scheme there, CSG and CRDS do not apply; instead, a 7.5% solidarity levy may be due on relevant income. Other non-residents can still face the full 17.2% on French-source investment income, particularly for real-estate income and gains. Always verify how your residency, social security affiliation, and income category interact before filing.

Practical points also matter. Social levies are generally calculated on the taxable base before income tax. Collection can occur via withholding (for example, on interest or at fund custodians) or through your annual tax return. If you opt out of the PFU in favor of the progressive scale, you should check whether the 6.8-point CSG deductibility applies to your specific income and ensure it is properly reflected in the following year’s taxable base. Documentation from banks, brokers, and insurers typically shows the gross amount, any prelevied sums, and what remains to be settled through your return.

Finally, investment wrappers can change timing but not the fundamental exposure to social levies. Equity and bond funds distribute income or accumulate it; in either case, when a taxable event occurs (distribution or redemption), the social levies are assessed on the taxable gain. Tax-advantaged envelopes like PEA defer income tax and sometimes social levies to exit; regulated savings avoid both; life insurance applies social levies on accrued gains at withdrawal with specific rules depending on the contract. Distinguishing between business profits and passive income, confirming residency and social security status, and choosing between PFU and the progressive scale are the main levers that determine how much CSG, CRDS, and solidarity levy you ultimately pay.

In summary, France’s social charges on investment income comprise a stable trio—CSG, CRDS, and a solidarity levy—totalling 17.2% for most residents. Understanding when partial CSG deductibility is possible, which products are exempt, and how non-resident rules diverge helps align portfolio choices with after-tax outcomes without confusing business income from truly passive returns.