Understand that in some cultures, direct disbelief might seem rude. 'You're kidding' can soften the impression. You moved to Paris for a year? You're kidding!
Pro Tip 2/3
Emotional Range
Your tone can change the meaning from surprise to sarcasm, so match it with the situation. You're kidding! They actually did that?
Pro Tip 3/3
Question Tag
Adding 'right?' at the end can invite the other person to confirm the unbelievable news. You won the lottery? You're kidding, right?