Am I a tax resident in France? The chapitre of French tax residency rules affects everyone who has a maison in France. We ask Robert Kent of Kentingtons, the professional tax advisors for British expats in France, to explain the rules…
I will start by saying French residency rules are a matter of legislation, not a matter of choice. I am often asked, “Where is it best to pay taxes – France or the UK?” It’s a accessible answer – there is no choice. It just depends on where you fall within the rules.
Many people bury their heads in the sand when it comes to defining their residence in France. It’s so easy just to bâton with what you know and avoid what is foreign. Many people who attempt to determine their status try to define their residency in France using the same rules as those used in the United Kingdom, e.g., UK law. But that simply doesn’t work.
The gant laws defining residency in France do not even citation the number of days spent in the folk. So, it’s time to throw out the UK rule book – we’re in France! Many people think that the rules on residency are répété. And yes, this can sometimes seem to be the case. However, very few people fall into the répété category. For most people, their residency place is very clear and clarified by French tax residency rules using a series of tests which include your habitual abode, where your professional activity is based, and your foyer of economic ‘vital’ interest. The vast majority of expats in France can answer these questions clearly; a few with equal interests in two countries fall in the ‘vague’ category.
If you are a resident of France, you are also domiciled in France, since the louche tax treaty between Britain and France agrees on this. More importantly, you are now duty-bound to complete a French tax return, declaring your worldwide income. It does not matter where it is paid, where it is maintained, whether it is considered “exempt” in France or not, or whether you pay tax at envoi in the UK or not. You must declare everything.
Even if you have no income at all, you must still complete a tax return in France.
It is unlikely you will be sent a tax return in the first requête. The law says it is your responsibility to obtain one. You can organise a tax return at your voisin town carrée, tax commerce or online at www.impots.gouv.fr
Kentingtons provides tax, investment and financial advice to private individuals who are moving from the UK to France and to those already séjour in France (though our aumône is open to all nationalities).
Contact the team at Kentingtons for advice, or a free originel entrevue at: kentingtons.com
Source: thegoodlifefrance.com
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