[JMHouse]

Hi

We are looking to move to France but want to keep some of our money in our Australian accounts due to higher interest rates = additional income. Does anyone know how much the Australian Government take out for tax on interest earned.

So far we have heard almost 30%, then I read somewhere possibly 10%, then somewhere else says that Australian and France have a treaty and we won't get taxed by Australia and to claim it in France.

Any help would be much appreciated.

Cheers
Jo

 

[Bevdeforges]

I don't know specifically how the French-Australian tax treaty works, but for tax purposes here, you declare your worldwide income, and then you detail your foreign source income on a separate form. Depending on the type of income (interest, dividends, salary, retirement, etc) and the country it comes from, the tax inspector then is supposed to apply the correct tax treatment for French tax purposes.

According to some old French forms I have (the current ones haven't been released yet), Australia seems to take out taxes at the source on interest income at a rate of about 11%. So that would indicate that interest income for Australia is treated in the French system as income on which you've paid taxes elsewhere. They still have to be reported, but you're given credit for taxes already paid.
Cheers,
Bev

 

[KimMii]

The advice we've received is "It depends on what you do with the interest earned"...if, for example, you borrow from a French bank to buy a property...then you pay tax on interest earned v the interest paid (so the difference) With AU banks paying higher interest rates than the French banks charge on borrowings, it makes sense to do it this way!

 

[MataMata]

I don't know the details of any tax treaty with Australia but under the UK/France agreement in general the only automatic tax credits are for that paid on a salary earned there and public service pensions, interest on other monies such as savings etc., from all sources worldwide, is taxable in France.

Once you have proved to the UK tax authorities that you are French resident, and paying tax there, you can apply to have your interest paid net of tax. If you don't then you will be taxed on it twice.

If the 10% Australian withholding tax is irrecoverable then the tax treaty may give credit for that.

I thing you may need to do some reading :ranger:

Revised tax treaty between Australia and France

 

[tinytina]

any info?

Hi there,
Just wondering what happened with your tax paid on your interest in Australia? I am in the same situation for next tax time as I am living in France now and still have Australian bank accounts earning interest. Any advice would be appreciated Tina

Hi

We are looking to move to France but want to keep some of our money in our Australian accounts due to higher interest rates = additional income. Does anyone know how much the Australian Government take out for tax on interest earned.

So far we have heard almost 30%, then I read somewhere possibly 10%, then somewhere else says that Australian and France have a treaty and we won't get taxed by Australia and to claim it in France.

Any help would be much appreciated.

Cheers
Jo

 

[Bevdeforges]

For your French taxes, there is a specific form to itemize your "foreign" (i.e. to France) source income by type. (You also declare it on the main tax form along with your French income.)

Interest income from outside France is listed on page 2 of form 2047 by country - and on page 3 of the form, there is a chart that shows the amount of the tax credit the fisc grants for this income. (For Australia, it's 11.2% - or was on last year's form).
Cheers,
Bev

 

[brettaevans]

Hi Tina,

With bank interest, withholding tax at a rate of 10% is deducted when the interest is credited to your account. The same happens with an shares that you may have in Australia - when the dividend is credited to your account 15% withholding tax is deducted and the remainder credited to your account.

Generally speaking when you lodge your tax return in whatever jurisdiction you may be in they will take into account the tax that you have already paid and if for example you are to pay tax at a rate of 35% then you will only pay an extra 25% tax on the bank interest (or 20% for dividend income). Please note this is only the case where Australia has a double taxation treaty with the jurisdiction that you are dealing with. As always seek professional advice.

Cheers,

Brett

 

[Oz to Spain]

Move to France

Hi

We are looking to move to France but want to keep some of our money in our Australian accounts due to higher interest rates = additional income. Does anyone know how much the Australian Government take out for tax on interest earned.

So far we have heard almost 30%, then I read somewhere possibly 10%, then somewhere else says that Australian and France have a treaty and we won't get taxed by Australia and to claim it in France.

Any help would be much appreciated.

Cheers
Jo

Hi JM
Where about in France are you looking at, we were initially thinking of Spain but after doing a recce early this year we decided that France was the better option, are you thinking of retiring there permanently, we are moving next year, a bit concerned about the cold winters after becoming acclimatised to Brisbane, are you able to say a little about why you are making the decision to move if it is a permanent move.
You might want to send a private message.
Have been entertained by another site' pomsinoz' which has a section dedicated to poms returning to UK which is quite good.
I understand from our financial adviser that monies from super are not subject to withholding tax, you may want to explore that one.
Bon Voyage:ranger:
Russell

 

[brettaevans]

Hi JM
I understand from our financial adviser that monies from super are not subject to withholding tax, you may want to explore that one.
Russell

Hi Russell,

all depends on what stage you are at with your super fund. If you are in accumulation phase then thats not the case but if you are in pension mode then that is correct.

Cheers,

Brett

 

[Oz to Spain]

Hi Russell,

all depends on what stage you are at with your super fund. If you are in accumulation phase then thats not the case but if you are in pension mode then that is correct.

Cheers,

Brett

Thanks Brett, I had just assumed that monies only came out when in Pension mode which is where I'm at
Regards

 

[JMHouse]

Hi Russell

I am currently living in Brisbane just now. My husband and I are from Scotland and England so most of our family is over that side of the world except our parents and siblings who are still in here in Oz. We like to travel and found that it would be easier from that side of the world. We find the cost of living much cheaper in France compared to Australia and we like the lifestyle. The people we have met are so friendly and the hamlet we have purchased a house in is very community orientated. The houses are alot cheaper in France than both the UK and Australia. We loved both Italy and France when we went on our honeymoon but decided on France. We will eventually move there one day but for the meantime it will be a holiday house. The area where we have bought our house is in Dordogne. The weather does get cold in the winters but they generally have pretty good weather. We were there in October and some days were 6 degrees and some were 24 degrees. Where abouts are you looking at in France?? My husband and I are a ways off being entitled to our Super as we are still quite young.

Cheers
Jo

 

[Oz to Spain]

Hi Russell

I am currently living in Brisbane just now. My husband and I are from Scotland and England so most of our family is over that side of the world except our parents and siblings who are still in here in Oz. We like to travel and found that it would be easier from that side of the world. We find the cost of living much cheaper in France compared to Australia and we like the lifestyle. The people we have met are so friendly and the hamlet we have purchased a house in is very community orientated. The houses are alot cheaper in France than both the UK and Australia. We loved both Italy and France when we went on our honeymoon but decided on France. We will eventually move there one day but for the meantime it will be a holiday house. The area where we have bought our house is in Dordogne. The weather does get cold in the winters but they generally have pretty good weather. We were there in October and some days were 6 degrees and some were 24 degrees. Where abouts are you looking at in France?? My husband and I are a ways off being entitled to our Super as we are still quite young.

Hi Jo
sent you a PM , did you receive it?
Regards
Russell
Cheers