[NYandParis]

Hi everybody!

I just found out that my Company could send me to the Paris branch for some 4-6-8 months (you know how these things go, you know the start date and never the end date).
Of course my wife and I are excited but I'd like to hear from you about a few issues:

- I'll probably stay on the US payroll so I'll just be paying US Federal Taxes (and not even NY local taxes since we won't be physically present there). Would I have any liability in France even though my income originates in the US?

- Residency: I just became a US citizen last week and I hold Italian citizenship as well. I understand it won't be a problem for me. Is there anything I should do once in France?
My wife is a US citizen only for now. She applied for Italian citizenship but most likely that won't be granted till next summer, at least.
What should she do. Does she need to apply for a visa or she can obtain one there as spouse of a EU citizen? We would like to keep a low-profile on this because I do not want to have French Govt coming after me for any tax liability.

Lastly, any good suggestion for a neighborhood to live in Paris? My wife and I are a young couple and love the art scene as well as the restaurant scene.

Thanks everybody!

 

[Bevdeforges]

Hi and welcome to the forum!

- I'll probably stay on the US payroll so I'll just be paying US Federal Taxes (and not even NY local taxes since we won't be physically present there). Would I have any liability in France even though my income originates in the US?

The origin of your income has no bearing on the tax situation. You become tax resident in France once you move there "with the intention" of remaining for the long haul (which technically means more than 183 days). If your employer is keeping you on the US payroll, they should handle the tax legalities - which may include exempting you from the French cotisations (social insurances). You should check with your employer to see what they are doing on your behalf.

- Residency: I just became a US citizen last week and I hold Italian citizenship as well. I understand it won't be a problem for me. Is there anything I should do once in France?
My wife is a US citizen only for now. She applied for Italian citizenship but most likely that won't be granted till next summer, at least.

Other than registering with the US Consulate (optional, but probably not a bad idea - they'll send you "warnings" and stuff if the situation in France or in Europe gets touchy), there isn't really much you need to do. Your wife shouldn't even need the visa - as she is entitled to a 90 day "tourist" stay. You may want to ask the Préfecture about getting her a carte de séjour (or ask your employer to handle this for you).

What should she do. Does she need to apply for a visa or she can obtain one there as spouse of a EU citizen? We would like to keep a low-profile on this because I do not want to have French Govt coming after me for any tax liability.

If you wind up staying longer than 6 months, you will have a tax liability. Again, that's your employer's concern. (If they don't do things the right way, it's the employer that will be in big trouble.) You should check with the préfecture on getting her a carte de séjour - but she won't need a visa for that, if I understand that process correctly. The cds is handy for identification and can help her avoid "situations."
Cheers,
Bev

 

[NYandParis]

Hi and welcome to the forum!

I hope to stick around for a while

The origin of your income has no bearing on the tax situation. You become tax resident in France once you move there "with the intention" of remaining for the long haul (which technically means more than 183 days). If your employer is keeping you on the US payroll, they should handle the tax legalities - which may include exempting you from the French cotisations (social insurances). You should check with your employer to see what they are doing on your behalf.

The point is that I'll be in France for a temporary assignment (kinda like traveling for business). It could be 6 months, but even less or more. I'll be paid in the US, on my US bank account, with taxes (and FICA contributions) deducted in the US. I'll have private health insurance from the US also. Wouldn't that take away the "intention of remaining for the long haul", even though it could be more than 183 days?

Other than registering with the US Consulate (optional, but probably not a bad idea - they'll send you "warnings" and stuff if the situation in France or in Europe gets touchy), there isn't really much you need to do. Your wife shouldn't even need the visa - as she is entitled to a 90 day "tourist" stay. You may want to ask the Préfecture about getting her a carte de séjour (or ask your employer to handle this for you).

Of course I'll register with the US Consulate (and Italian consulate). I won't need a visa since I'm a EU citizen, but my wife is not (yet) and she would need one to stay more than 90 days, even though she will probably fly back to the US (or we fly out of France for weekends or vacations) every 90 days. Would that cause any problem at immigration at CDG (similarly to the US when they see somebody taking advantage of the VWP)?

If you wind up staying longer than 6 months, you will have a tax liability. Again, that's your employer's concern. (If they don't do things the right way, it's the employer that will be in big trouble.) You should check with the préfecture on getting her a carte de séjour - but she won't need a visa for that, if I understand that process correctly. The cds is handy for identification and can help her avoid "situations."

That is really a key issue. I don't mind paying French taxes out of any euro given to me as part of the package by the French office, but I wouldn't like to have my US income (now taxed at 33% for the top portion only and with some deductions) be taxed for the almost entire part at 40%...

 

[Bevdeforges]

You're stuck in an awkward situation until you know whether you'll be staying for longer than 183 days or not.

You have to be outside the US for at least one full year (there are a couple of ways to do this) before the US tax treaty provisions kick in - basically the overseas earned income exclusion. Still, you won't be double taxed on the income earned while working in France, even if you wind up having to file a tax declaration. (But, especially in your tax bracket, your employer should be providing tax assistance if your stay winds up lasting longer than 183 days.)

As the spouse of an EU national, your wife probably doesn't really even need a visa - though she should apply for a titre de séjour, which would give her the right to work, should she so desire. It's really doubtful she would run into any problems at CDG, no matter how frequent her comings and goings - but the carte de séjour would cover anything that might come up.
Cheers,
Bev