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Hi Everyone,
Can anyone give me a rough idea what amount if any Income Tax we would pay here in France on the equivalent of 24000euros on Rental Income we receive from a UK Property? I beleive Rental Income from the UK isn't taxed in France although it will need to be shown on Worldwide Income on French Tax Return. Thank you
 

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Bonjour,

My question is when living in france as a EU citizen do you have to pay taxes at the end of the year? In the US they are deducted from your paycheck and if you are over taxed you get a refund, if under taxed you then owe. Is it similar in France? Or do you always pay taxes (and never get a refund) at tax time along with the 23+% that comes out of your paycheck. Or is it possible to not owe anything at tax time and just owe what comes out of your paycheck.
Merci,
Robert
 

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France does not (yet) have income tax withholding for salary and other items. The 23+% that is deducted from your paycheck is actually for "payroll taxes" (i.e. cotisations or social insurances), not for income taxes.

In France, you file a tax declaration in May of the year following the tax/calendar year. Unlike the US tax return, you don't calculate anything - just put your income and deduction information in the proper "box" on the forms and let the Fisc do all the calculations. You normally receive your tax assessment late in August or in September, and then you have something like ten months to pay any balance due in monthly or quarterly installments.

The following year, you pay installments based on what your actual tax bill was for the prior year. File your tax declaration in May, get the assessment in September (and settle up on any amounts owed from or to you) and the cycle continues.

But they are promising to implement some sort of income tax withholding at the source - probably in 2017. Stay tuned....
Cheers,
Bev
 

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Thanks Bev. Are income taxes in France high? And do you know of any good online calculators that might help one figure out what we might owe on the tax year and France?

Merci
Robert
 

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There are income tax calculators - all in French (of course) - but you have to understand a bit about how the income tax works here. Certain kinds of income are taxed differently from regular old salary income. And the array of deductions, exclusions and allowable credits are a bit different from what you may be used to. Another big factor is just where your income is coming from - foreign source income has to be reported, but it may be exempt from income taxes or merely subject to a tax credit, either at a fixed rate or based on the taxes you actually paid in the source country.

France is considered a "high tax" country, however that's not necessarily because of the income tax. The government gets more than half their revenue from the VAT (at 20%) and there are high taxes on fuel for your car.

Take a look at the booklet on Taxation in France that I recommended up thread a bit. The section on the "parts" used in France to adjust taxes for family size is particularly interesting.
Cheers,
Bev
 

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Thanks again. I will look at that. My income will be coming from Disney in France so I'm hoping it will be pretty straight forward. You are always so very helpful.

Merci
Robert
 

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Hello everyone,
I've been doing some reading and it sounds like you are able to take your total income and split it into parts that are then applied to a tax band. For instance we have a family of five, my wife and I and three children. So it sounds like we would be split into four parts. Let's say someone of that family size only made ?40,000 in a tax year, after deducting what you've already paid out of your check every month for social services once you apply the 2015 tax bands all four parts come in under the 0% tax band. And obviously if you multiply 0% by four again you have 0% tax owed. So my question that I don't see is, is there a minimum tax on and earned income? Or do people in that situation simply not have to pay tax?
Merci,
Robert
 

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Actually, the French tax system is pretty good for folks in the lower income brackets. I haven't "checked your math" but yes, if your "tax per part" turns out to be 0, then 4 times 0 is 0 and you're off the hook! You still have to declare, and you will need the declaration for various administrative tasks in France - but mainly to prove that you're up to date on your taxes.
Cheers,
Bev
 

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Merci for the info everyone. Is the VAT tax deductible at the end of the year for a EU member living in France working for a French company?
Merci. Probably not my last question but you all have been great!
Robert
 

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VAT is not deductible from your income tax at all. If you are a business, you can deduct your VAT paid (for business expenses) from the VAT you charge your customers (that's how VAT works). But it's the end user that pays VAT with no deductions. Meaning, if you're a consumer, there's no deduction for you.

You may be tying yourself up in knots trying to equate French taxes to the US kind. The system works very differently here. Deductions, in particular, are not at all similar between the two systems.
Cheers,
Bev
 

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Marie Anne
You will declare and pay income tax in the UK for your rental property in the uk.You need to declare it in France and you will then get an allowance off your french to compensate you for your uk tax paid but it is impossible to say what it would be or how much if anything you will pay as it will depend on your overall income etc
 
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