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Discussion Starter · #1 ·
I am Indian and my wife & daughter acquired french nationality a few years back and are residing in France for almost an year now. I still live and work in Dubai and support them financially. My wife does not have any job and is not claiming any chomage. In such a situation what are her tax liabilities in France? Does she have to pay taxes on the amount that I send her or is my whole income taxed or there is no tax at all? I googled a lot, but couldn't find any information related to my scenario. Any help or links would be helpful.
 

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Technically speaking, French income taxes are based on the "household" - which usually means that you are assumed to be living wherever she lives, so your worldwide income would be taxed. Not sure what, if anything, you can do about the fact that you are living elsewhere in the world while supporting your wife and daughter in France.

However, she would still be subject to taxes like the taxe d'habitation and other miscellaneous taxes. (And the question remains what sort of health care coverage they have.)
Cheers,
Bev
 

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Discussion Starter · #3 ·
Thanks Bev for the response.

She does have a carte vitale with the basic coverage and mutuelle which we pay ourselves. After a lot of hassle (after getting a letter from the Bank of France) she was able to open a bank account and we are planning to buy an apartment, so at that time we anyway have to pay the housing taxes. I am more interested in the income taxes, for which i do not wish to be caught on the wrong side of the law due to ignorance. Based on your reply, I assume that she has to file tax returns nevertheless. So, to get more clarity on it, who is generally the preferred authority to consult in France for these matters? A lawyer or a chartered account or any other tax consultants?
 

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Folks don't normally use "tax advisers" in France unless they have a business. Your wife should go directly to the local tax office to establish what her situation is. The issue seems to be that, in France, a married couple are required to maintain a home/residence in common and income taxes are declared and assessed based on the "household." There is no separate filing for someone filing as a married person (unless the couple is legally separated and has a court order saying so).

Foreign source income (like your salary) is reported in a manner that should avoid your being taxed on the income. But this could be a good time for her to make an appointment to talk to the local tax office (i.e. before the season for filing tax declarations gets started) to ask them how to proceed.

It's actually advantageous to file and get an assessment (avis d'imposition), even if there are no taxes due. Comes in extremely handy for any number of administrative functions down the line. And generally speaking, the people at the tax office are usually pretty helpful.
Cheers,
Bev
 

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It's possible that Dubai (like some of those Emirate countries) doesn't have any income tax at all - though that may be starting to change, or so I hear.

But the issue here is that of the French method of taxing based on households, along with the requirement that married couples must maintain a residence in common. If the OP is considered to be resident in France (and thus subject to French taxation), then it is the couple's worldwide income that has to be taken into account. If, due to visa issues and whatever, the OP is not considered to be resident in France for tax purposes, then the money he sends his wife in France "could" be considered a sort of "pension alimentaire" and thus subject to taxation.

There are a whole bunch of technicalities here that "could" come into play, which is why it might be best to discuss this with the local tax office. They aren't always able to give you the "right" answer, but you at least have the benefit of good faith in having raised the question with them before deciding what to do.
Cheers,
Bev
 
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