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Tax for Offshore residents

Posted by peter last - Created: 13 years ago
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Hi, Anyone moved to CDA from Jersey/Guernsey/IOM?

Just buying small apartment as holiday home in Nice and someone told me that us Offshore residents are badly hit by the French Taxman because we live in a country not recognised as part of the EU.

I live in IOM but am no rich tax exile and haven`t got a clue if this info is correct but has anyone come across this before and if so, do I panic?

Alex, if you are reading this, don`t laugh! you know I`m a paranoid Manxie!

Peter

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1 reply

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Posted by No.6 - 13 years ago

Hi Peter, it's difficult to advise you as it's not entirely clear whether you intend moving to the CDA and become a French resident for tax purposes... or not?

If you're not, as far as I know you will potentially be liable to pay:

- the local taxes relating to your property (Taxe Foncière and Taxe d'Habitation). These will be based on rateable values arbitrarily pegged three times higher than the norm for residents of countries that do not have a double-taxation agreement with France. For more general info on these taxes, see this thread.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

- income tax if you rent it out (Impôt sur revenus fonciers), applicable at an arbitrary rate of 25% to residents of countries that do not have a doube-taxation agreement with France. Certain expenses are deductible.

- capital gains tax if and when you sell it at a profit (Plus-value sur cession de capitaux mobiliers). This is higher if you are a non-EU resident, 33.33% instead of 16%, I believe.

There you go, nothing to panic about! 

Hope this helps.