France, tax issue

[erd]

Hello everyone :-)

I am from a Non-EU country, planning to live in whether Italy or France beginning next year.

I own a house and car here. Will keep the house, sell the car, planning to rent a flat in France but the are 2 main questions arising important, will be pleased if you can help.

Planning to buy a 2nd hand Lamborghini Gallardo or brand-new Nissan GT-R, both around EUR 85,000.

For buying a car in France, I think I have to be a permanent resident. Am I right? (not sure about about that)

When I qualify for a parmanent resident, then I have to pay taxes, which I don't want. The reason is simple: I have some websites which I earn advertising income. That has nothing to do with France. It's not even freelance.

On tax advice websites, it says when you become a resident, you have to pay taxes from all your incomes (international). How can this be? If I earn $200,000 a year, will I give almost 40% of this income to French government?

Thanks in advance

[Bevdeforges]

See my reply to you in the Italian section...

France is even worse than Italy in that regard. Have you looked into getting residence visas (for either country) yet?
Cheers,
Bev

[erd]

Hello Bev..

No, at this point I'm just investigating..
I'm certainly not a millionaire, but my situation is a bit different than -let's say- students..

Most people told me that it won't be a big issue if you have money.. The thing a country will not want is that you go there without money, you take their jobs, etc..

Now, none of those apply to my situation.. I have money, don't need a job in the country i will reside (I won't take a French guy's job, for example), i have retirement here and also have all my insurances, health, etc.

The problem here is that i live in a country which you pay or don't pay a tax, no problem at all (for now) for some certain jobs. Internet earnimngs is one of that.

Now, if you make $100,000 or 200,000 a year and move to a country like Italy or France, you suddenly begin passing an amount close to $40,000 (for $100k example) to the government, which makes almost HALF a MILLION DOLLARS in just 10 years..

Tough decision..

[Bevdeforges]

Originally Posted by erd

The problem here is that i live in a country which you pay or don't pay a tax, no problem at all (for now) for some certain jobs. Internet earnimngs is one of that.

Now, if you make $100,000 or 200,000 a year and move to a country like Italy or France, you suddenly begin passing an amount close to $40,000 (for $100k example) to the government, which makes almost HALF a MILLION DOLLARS in just 10 years..

Tough decision..

The argument on this side is that, if you are resident in France (or Italy, for that matter) then you are benefiting from all the public services provided by the government - and they feel you ought to be kicking in somehow.

To some extent, your friends are right - if you have money, no problem. But that's if you have a trust fund, or a couple million dollars (or better, euros) stashed away somewhere so that you're living on the interest. (And even in that case, you'd be paying your French taxes on the interest PLUS the ISF - a wealth tax you pay each year on your net worth over a certain amount...)

While you're resident in France, you benefit from the health service, the various regulatory agencies (safe food, decent roads, not too many nuclear accidents even with all those nuclear power plants, etc. etc.) and the overall quality of life here.

Can't you buy your luxury car where you are? If you really have no income taxes there, I'd think importing a car might be well worth whatever tariffs or taxes it would take to get it shipped to you.
Cheers,
Bev

[erd]

Cars are really expensive.. Mitsu Evo X 75,000 Euros, Nissan GT-R 220,000 USD :-)

[Yaz]

Tax is all about residency. If you are living in France for more than 183 days a year then you are liable to pay tax in France on your earnings. At least that income that you bring into France. Part of the situation will depend on your country of current tax residence and whether they have a bilateral tax agreement with France.