If an individual resides
in France for more than 183 days in any calendar
year, they are deemed resident for tax purposes.
If an individual’s profession or financial
interests are based in France, this too may lead
to an individual being classed as a tax resident.
Residents of France pay
income tax on income derived from within France
and worldwide. Non-residents pay tax only on income
derived from within France.
EU and EEA residents
may enter France freely to live and work (with the
exception of residents from certain of the newer
EU countries, who may face restrictions). No Work
Permit is generally required. After three months,
they must declare themselves as resident but do
not have to apply for a Residence Card. Non-EU/EEA
residents require a Residence Card, Work Permit
and a visa.
Cost
of Residence Document (approx)
Work
Permit Required
Work
Permit Authority
There is no charge to EU/EEA or non-EU/EEA
citizens for processing and issuing a Residence
Card.
EU and EEA nationals do not require
a Work Permit, though there are currently exceptions
for recent EU member countries. Non-EU/EEA nationals
must obtain a Work Permit (either Temporary Secondment
or a Full Work Permit). This can take up to six
weeks to be issued.
The Department Directorate of Work,
Employment and Training (Direction Departementale
du Travail, de l’emploi et de la formation
professionnelle).
Personal
Income Tax
Corporate
Income Tax
Social
Taxes
Income tax is based on the total
income of a household. Income tax is levied in bands
between 0% and 40% on net income after deductions,
apportioned according to the size of the household.
Income below EUR5852 is exempt from tax. EUR5582
to 11,673 is taxed at 5.5%; 11,673 to 25,926 at
14%; 25,926 to 69,505 at 30% and above 69,505 at
40%.
The Corporation Tax rate for companies
is currently a flat rate of 33.33% on profits. Smaller
companies may qualify for a reduced rate of 15%
on the first EUR38,120 of profit, subject to conditions.
Larger companies (defined as those with a turnover
of EUR7,630,000, and taxable profits of more than
EUR2,289,000 will pay tax at a higher rate (usually
around 34.43%). This is called the ‘Contribution
Sociale Additionnelle’.
Self-employed individuals and companies
must register for Social Security. For the self-employed,
contributions are calculated as a percentage of
taxable income. Contributions for health, family
allowances and pensions are compulsory. Employers
must make contributions for employees, although
the amount varies according to the size and location
of the business.
Capital
Gains Tax
Property
or Wealth Tax
Stamp
Duty
The sale of a resident’s main
home is exempt from CGT. The sale of other properties
is liable to tax on the taxable gain. The tax rate
on the taxable gain is 16% for EU residents (33.33%
for non-EU residents).
Local taxes (known as Taxe d’Habitation
and Taxe Fonciere) are payable by a property occupier
and owner respectively.
Stamp Duty of 5% is payable on the
sale of French property. Nominal Stamp Duty is also
payable on the sale or transfer of shares.
Other
Taxes
The standard rate of VAT in France
is 19.6%. A reduced rate of 5.5% applies to food
products, public transport and publishing. A special
rate of 2.1% applies in specific instances. A Wealth
Tax is imposed on wealth above EUR790,000, ranging
from 0% to 1.80%. An unpopular tax imposed on the
asset base of a business, the taxe professionnelle,
was removed on January 1, 2010, and replaced with
the contribution économique territoriale
(CET).
I am facing a dilemma and would like to invite any reader to advise me.
I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.
In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.
However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?
If anyone has pertinent advice on these points, I’d be grateful to hear them.
Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary
Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.
Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...
I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD. Do I pay tax in France or Australia or both ? Any help or guidance would be much appreciated.France move
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