Living in France most of year........ implications???
Discussion
Hi, looking for a few pointers.
My wife and I have got our businesses up and running to the point, now, that they are more or less taking care of themselves. We already own our dream / 2nd home in the Alps and we are thinking of moving over; whilst coming back often to the UK for work and family.
An overview would be 3 month stints in France and coming back to the UK for between 4 to 6 weeks and then back for another 3 month stint in France. This, of course, means that the majority of our time will be in France - but ALL business activity will still be in the UK.
Simply spending more time in France each year; how will that impact us? Given that we are not earning one dime in France? Do we even needto get involved with French taxes?
Thank you for any help!
My wife and I have got our businesses up and running to the point, now, that they are more or less taking care of themselves. We already own our dream / 2nd home in the Alps and we are thinking of moving over; whilst coming back often to the UK for work and family.
An overview would be 3 month stints in France and coming back to the UK for between 4 to 6 weeks and then back for another 3 month stint in France. This, of course, means that the majority of our time will be in France - but ALL business activity will still be in the UK.
Simply spending more time in France each year; how will that impact us? Given that we are not earning one dime in France? Do we even needto get involved with French taxes?
Thank you for any help!
I think there are lots of people who do something similar - and I would if family issues in the UK weren't so pressing. As it stands, you are free to reside in France as a UK citizen and if you don't earn any money in France do not have to do any sort of tax return nor pay taxes (other than those related to your property (Taxe d'habitation and foncière plus water). You are entitled to basic reciprocal health care although (IMHO) worth paying for some extra private cover. How all this might change if we vote "Brexit" is anybody's guess - but it won't be any easier!
Hahahaha....
It matters not where your company is based.
Under French domestic rules, you will be deemed to be resident in France for tax purposes if you fulfil any of these tests –
1. France is your main residence or home. This is the place where your close family (spouse and minor children) live, regardless of where you yourself spend most of the
time.
2. France is your principal place of abode, which usually means that you spend more than 183 days in France a year.
3. Your principal activity is in France.
4. France is the country of your most substantial assets.
Besides income tax and social security (complications from UK company and living in France), you also need to be aware that if you are a French resident, all your other income – bank interest, investment income etc – will be liable for French tax. Investment income is charged at the scale rates of income tax, ranging from 14% for income between €9,690 and €26,764 to 45% for income over €151,956. As mentioned, even if it is not taxable in France, your UK earned income will be included in the calculation of your tax band for other income. Social charges of 15.5% will also apply to investment income.
If the wealth of your household exceeds €1,300,000 you will also be liable to the annual wealth tax on assets over €800,000. You would need to review your savings and investment structures as what is tax efficient in the UK is usually not tax efficient in France. With specialist advice and careful planning, you can use French compliant opportunities to reduce tax on your investments and wealth, and could end up paying less tax in France than you did in the UK.
(April 2015)
Bottom line, talk to a good accountant.
It matters not where your company is based.
Under French domestic rules, you will be deemed to be resident in France for tax purposes if you fulfil any of these tests –
1. France is your main residence or home. This is the place where your close family (spouse and minor children) live, regardless of where you yourself spend most of the
time.
2. France is your principal place of abode, which usually means that you spend more than 183 days in France a year.
3. Your principal activity is in France.
4. France is the country of your most substantial assets.
Besides income tax and social security (complications from UK company and living in France), you also need to be aware that if you are a French resident, all your other income – bank interest, investment income etc – will be liable for French tax. Investment income is charged at the scale rates of income tax, ranging from 14% for income between €9,690 and €26,764 to 45% for income over €151,956. As mentioned, even if it is not taxable in France, your UK earned income will be included in the calculation of your tax band for other income. Social charges of 15.5% will also apply to investment income.
If the wealth of your household exceeds €1,300,000 you will also be liable to the annual wealth tax on assets over €800,000. You would need to review your savings and investment structures as what is tax efficient in the UK is usually not tax efficient in France. With specialist advice and careful planning, you can use French compliant opportunities to reduce tax on your investments and wealth, and could end up paying less tax in France than you did in the UK.
(April 2015)
Bottom line, talk to a good accountant.
Beggarall said:
I think there are lots of people who do something similar - and I would if family issues in the UK weren't so pressing. As it stands, you are free to reside in France as a UK citizen and if you don't earn any money in France do not have to do any sort of tax return nor pay taxes (other than those related to your property (Taxe d'habitation and foncière plus water). You are entitled to basic reciprocal health care although (IMHO) worth paying for some extra private cover. How all this might change if we vote "Brexit" is anybody's guess - but it won't be any easier!
I think it's fair to say this advice is absolutely incorrect.Given the OP's intention, he will definately be French resident and therefore liable to the French tax regime on his worldwide income. There is no such thing as non-dom status here.
His liabilities for Social Charges, which are quite onerous, needs to be fully investigated by a good accountant.
Wow; I had feared it would be complicated. We won't make a penny 'in' France with every dime of income being in the UK. We will also be spending 3 months a year in the UK... and so 9 in France. So for the sake of another 3 months, it seems a hell of a 'to do'. I.e: we could split it 6 / 6 instead (but I don't want to do that).
What a shame. I'll seek professional advice and I don't think it will stop us. If nothing is mentioned to any authority and we continue to come and go as we please; would anyone seriously pick up on the dates we are back and forth?
What a shame. I'll seek professional advice and I don't think it will stop us. If nothing is mentioned to any authority and we continue to come and go as we please; would anyone seriously pick up on the dates we are back and forth?
rdjohn said:
Beggarall said:
I think there are lots of people who do something similar - and I would if family issues in the UK weren't so pressing. As it stands, you are free to reside in France as a UK citizen and if you don't earn any money in France do not have to do any sort of tax return nor pay taxes (other than those related to your property (Taxe d'habitation and foncière plus water). You are entitled to basic reciprocal health care although (IMHO) worth paying for some extra private cover. How all this might change if we vote "Brexit" is anybody's guess - but it won't be any easier!
I think it's fair to say this advice is absolutely incorrect.Given the OP's intention, he will definately be French resident and therefore liable to the French tax regime on his worldwide income. There is no such thing as non-dom status here.
His liabilities for Social Charges, which are quite onerous, needs to be fully investigated by a good accountant.
- I didn't realise I had fallen into a hornets nest! Perhaps I hadn't read properly the OP and missed the statement "moving over". However, my take was that if his house in the alps is not his main home (maison secondaire), that he maintains his home and family in the UK and does not earn any money in France then the only circumstance that he might fall foul of domicile (French definition) is by being resident for more than 183 days. As it stands, nobody is counting the seconds you spend in France so if the visits are only each for a couple of months I doubt anyone is going to notice. It sounds like getting proper advice from a tax accountant is sensible. Sorry if I have been misleading - but I travel back and forth to France frequently and I have never given this a thought. Perhaps I am an "illegal" !! Gassing Station | France | Top of Page | What's New | My Stuff