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How much should I expect to pay in taxes?

Posted by GemG - Created: 14 years ago
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8 replies (Showing replies: 1 to 8)

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Posted by Black Cat-192495 - 14 years ago

ivanfox is right about the difference between "residence" and "domicile". However the 183 days is not the only rule that applies. Any one of several criteria can make one a fiscal "domicile".Taken into consideration is where the centre of your professional life is and where the centre of your family life is (judged by things like regular use of a bank account, regular use of a vehicle, regular consumption of telephone and electricity, children in school, regular use of the health services, etc etc). There are other points which I've forgotten.I've just read somewhere (sorry I can't remember exactly where... I read an awful lot) that there has been too much abuse by undeclared residents who are consuming public services without contributing to the taxes that pay for them. A crackdown is promised. We'll see if it happens.I, for one, pay tax, CSG, social charges etc. in France and I'd like to see that everyone who regularly benefits from French public services does his or her part in contributing to them. Perhaps that would make the tax load a little easier on the rest of us.

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Posted by ric06 - 14 years ago

TV licence is about 117e per year. Taxe d'habitation is equivalent to council tax in UK. Depends on your commune but generally it is less than in UK. I have a villa in Mandelieu and pay only 70e per month which I think is good. There is also taxe de foncière which is 60e per month for me.

You pay income tax if you spend more than 183 days in France - it is irrelevant whether claim "second residence", or even if you are an illegal immigrant and shouldn't be here anyway. They go through electricity and telephone bills to check this if they get suspicious of you. Income tax is a bit more than in UK. They tax you worldwide.

If the tax inspectors get on your case they are total rottweilers and will insist on all documentation from two years before you arrived in France. I have friends who got investigated. I honestly don't think they were cheating the system - they were not particularaly wealthy. But the tax people demanded huge slice of the money they transferred from UK for a house because they didn't have the documentation to prove that it was existing capital at the time they first moved to France, so the tax brigade assumed it was income. In the end they just left the country and went to live in Spain. So make sure you have all your documentation - if you have capital declare it as soon as you arrive as it will make things much easier later on.

 

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Posted by ivanfox - 14 years ago

Slightly off point but...

... as I understand it, being resident is not the issue, for taxation purposes it's where you're 'domicile' that counts.  If you spend 183 or more days a year in France then you are domicile in France and will be liable for French income tax.  Now, the thing to be aware of is that they will consider your total worldwide income, not just income earned in France.

The double taxation agreement means that (where there is an agreement between the countries) you won't be taxed twice for the same income.  So if your were domicile in France but worked a few months in the UK, you wouldn't (shouldn't) pay UK income tax.

Someone is bound to correct me on some point but that's how I remember it anyway.

It's food for thought if you're domicile in France and inherit some money from a relative abroad.  The French gov will want a piece of the pie .

Ivan. 

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Posted by GemG - 14 years ago

I am intending to find a job etc in France and basically 'install myself' as I believe the EU call it.

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Posted by Shanwick - 14 years ago

It all depends upon where you are employed.  If you remain employed outside of France then you will be liable for tax in that country due to the "Double Taxation Treaty."  If that country happens to be "Offshore" you will neither pay tax here nor there.

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Posted by shakesrear - 14 years ago

Hi,the council tax equivalent is the taxe d'habitation. last year, i paid the equivalent of one month's rent, about 1,200 euros. Now i've bought a house, so we'll see.My net income is 60% of my gross income. I don't know about the tv license. They only seem to hassle you if you actually buy a tv here (you have to give your address at the time of purchase)** cynicism - the poor man's intelligence **°¨¨[:]o

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Posted by GemG - 14 years ago

What is the difference between being a resident and a non-resident?  Surely I would be a resident when I get my carte de séjour, which I need for health etc?

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Posted by stgeorge-182529 - 14 years ago

Stay a non-resident and only pay the TV licence ( about £80 a year - a bargain at half the price !! )

 

stgeorge