Expat Forum For People Moving Overseas And Living Abroad banner

Status
Not open for further replies.
1 - 5 of 5 Posts

·
Registered
Joined
·
8 Posts
Discussion Starter · #1 ·
As a newbie on here and a hopeful mover to France soon...I have many questions! I am self employed and all my business is in the uk, done over the internet but i am planning to live for a year in france in rented accommodation. Will I have to pay French Income tax or UK Income tax?
Also I have heard there is another type of tax the french have, a social tax? Can anyone explain what this is and if it exists? Also, is there a french equivelant to our Council Tax/Rates system that I would have to pay ontop of any rent on a property?

If I was just there for a year would I have to make my stay official with the authorities? I have looked for help on the net but it seems a minefield so I thought I'd ask you folks in the know.


Thanks for any help guys!!:)
 

·
Administrator
Joined
·
50,009 Posts
You are presumed to be "tax resident" in France if you are physically present for 183 days or more in a calendar year. That's not the only factor in determining your tax residence, but if you are going to argue that you should be UK resident, you'll need some convincing arguments to counter the 183 days one.

The social tax you're referring to is what are called "cotisations" - basically social insurance charges, i.e. for health insurance, retirement, child allowance, etc. There is a variation on the UK rates system - one tax on the owner of a residential property, and another on the occupant as of January 1st of each year. If you own the house you're living in, you pay both taxes. If you're renting, you pay only the taxe d'habitation portion.
Cheers,
Bev
 

·
Registered
Joined
·
8 Posts
Discussion Starter · #3 ·
You are presumed to be "tax resident" in France if you are physically present for 183 days or more in a calendar year. That's not the only factor in determining your tax residence, but if you are going to argue that you should be UK resident, you'll need some convincing arguments to counter the 183 days one.

The social tax you're referring to is what are called "cotisations" - basically social insurance charges, i.e. for health insurance, retirement, child allowance, etc. There is a variation on the UK rates system - one tax on the owner of a residential property, and another on the occupant as of January 1st of each year. If you own the house you're living in, you pay both taxes. If you're renting, you pay only the taxe d'habitation portion.
Cheers,
Bev
Thanks for such a quick reply Bev! Are the cotisations payable monthly or yearly or is it deducted at source from your wages? Is it a percentage of earnings or a set amount? Im just trying to get an idea of what my out goings would be or how much i would have to earn to have a similar standard of living. the taxe d'habitation, is that based on the size of property? What would be a good example of an amount on a rent of 800 euros?
 

·
Registered
Joined
·
8 Posts
Discussion Starter · #4 ·
Thanks for such a quick reply Bev! Are the cotisations payable monthly or yearly or is it deducted at source from your wages? Is it a percentage of earnings or a set amount? Im just trying to get an idea of what my out goings would be or how much i would have to earn to have a similar standard of living. the taxe d'habitation, is that based on the size of property? What would be a good example of an amount on a rent of 800 euros?
 

·
Administrator
Joined
·
50,009 Posts
Thanks for such a quick reply Bev! Are the cotisations payable monthly or yearly or is it deducted at source from your wages? Is it a percentage of earnings or a set amount? Im just trying to get an idea of what my out goings would be or how much i would have to earn to have a similar standard of living. the taxe d'habitation, is that based on the size of property? What would be a good example of an amount on a rent of 800 euros?
For a salaried person, cotisations are taken out of each pay check. They total usually about 25% of the gross pay amount (and the employer adds a chunk that adds up to about another 35 - 40%). Self-employed folks (other than auto-entrepreneurs) pay around 40% or so - usually quarterly - depending on the type of business entity they have.

The taxe d'habitation is based on a number of things, including the size of the living area of the property (in square meters) and the number of people inhabiting the dwelling and their tax situation (number of children, level of income, etc.). The rates for the taxe d'habitation vary by town.
Cheers,
Bev
 
1 - 5 of 5 Posts
Status
Not open for further replies.
Top