[Wayne E Edge]

Has anybody taken out any investments in France and receiving a decent return? When we move over shortly we will have a sum to invest. We have been warned against investing outside France due to taxation.

Cheers

 

[suein56]

Depends what you call a decent return ...

 

[Leforgeron]

I do not believe that foreign investment is generally (or perhaps at all) penalized in France. But of course there may be taxes in the country where you invest. As far as investment opportunities you may want to look at real estate. Requires some savvy and due diligence but a decent investment seems to be able to net around 5% pre-tax plus whatever appreciation there may be when you sell. Under OECD style tax treaties real estate income is generally taxed in the country where the real estate is.

It would be interested to hear other peoples thoughts on the investment issue.

 

[Bevdeforges]

I haven't said anything here because the OP appears to be British, and different rules apply, however for US citizens, investing outside the US can open up all sorts of cans of worms due to the tax rules in the US (primarily, but not exclusively, FATCA) and the US system of "citizenship based taxation."

Most tax advisers contend that even a vanilla assurance vie account (or an investment account through your bank) constitutes a foreign "trust" and so is subject to considerable advanced reporting as part of your income tax reporting obligation. Brits are not subject to this stuff.
Cheers,
Bev

 

[DejW]

-a few comments from a v difficult to use tablette keyboard.

1. if you can I think it's better to keep the money in the uk and invest it there..especially shares, unit trusts, investment trusts and etfs etc.......but brexit and £/€ rates are a big risk. beware isas if you are resident in france.

2. i've not been impressed with Fr bank and invesment consultants.....way behind on uk ifa good practice. example....2 advisors have talked to me about "zero risk" investments.....HA! they don't exist.

3. if you use a fr stockbroker then you have to pay more commission to deal in non euronext stocks. the choice of etfs on euronext is limited. uk investment trusts become more expensive.

4. fr property can be a good idea,but you need to know the ropes. fr property investment is primarily for rental income and not quick buy /sell as uk sometimes. Ask our poster Smeg for details!

5. a LOT depends on your knowledge of investing, your attitude to the many risks, and your long term life strategy....how long to stay in france, possible return to uk, investing for future income or to leave inheritance for children....,and many more aspects.


DejW

 

[EuroTrash]

We have been warned against investing outside France due to taxation.

That's a very vague warning. But one thing that springs to mind is that any national tax-free investment scheme is only tax free for residents of that country. For instance if you hold ISAs and move to France, the return on your ISAs is taxable in France.

 

[Wayne E Edge]

We plan to sale in the UK and buy a property for us to live in. Maybe do a little B&B or Gites for a small income. We will have no mortgage and could have around £150k - £200k left over. It wouldbe nice if we could get a small income from this to help with bills.

I maybe able to still run my ltd company in the UK as well.

Thanks

 

[EuroTrash]

I maybe able to still run my ltd company in the UK as well.

If you run your UK ltd co remotely from France, you would need to set up a French business structure to process your own salary and pay French social security contributions. If you never do any work in France but instead you return to your office in the UK and do everything there, you wouldn't.

 

[Wayne E Edge]

If you run your UK ltd co remotely from France, you would need to set up a French business structure to process your own salary and pay French social security contributions. If you never do any work in France but instead you return to your office in the UK and do everything there, you wouldn't.

That's interesting. I was aware about having to set business up. I guess as soon as you put any income into a French bank account then that is income?

Thanks

 

[EuroTrash]

That's interesting. I was aware about having to set business up. I guess as soon as you put any income into a French bank account then that is income?

Not sure what your question is here? All money that comes in is income, whatever account it comes into. Money that you received in the past, but that you are now transferring from a UK account to a French account, is not new income.

On your French tax form, as a French resident you declare worldwide income, which includes all French-sourced income and all foreign income. French-sourced income includes new income resulting from business activities carried out while on French soil, irrespective of where your customers are, what currency you are paid in or what bank account it arrives into. Foreign income includes earned new income resulting from business activities carried out while not on French soil, again irrespective of where your customers are, what currency it's earned in or which bank account the money goes into. That's the basic rule although course there are various complexities that can arise.

 

[Bevdeforges]

To clarify a bit, it is correct that as a French resident you declare all your worldwide income. Also, when you leave the UK to take up residence elsewhere, you have to "check out" of the UK by submitting paperwork to the UK tax authority declaring your non-residence. The UK residence rules can be a bit complicated, but you would definitely want to check into this option before you make the big move. It is possible to be considered tax resident in two countries at the same time - and the tax consequences can get very tricky (and very expensive to resolve).

As far as working for your company back in the UK, in general terms, you are considered to be working whichever country you are physically in while you do the work for which you are being paid. Where or how you're paid doesn't come into it at all.
Cheers,
Bev