Bank interest
#1
Account Closed
Thread Starter
Joined: Oct 2017
Posts: 0
Bank interest
Once we stick our heads above the parapet and buy a house in France we will be inactif, our income coming form property in the UK where we will be taxed. I understand we will still have to fill out French tax returns. Am I right in assuming that any interest from our French bank account and any savings we have in France will be declared and taxed, but that our inactif status won't be affected be our deriving some tiny income within France.
A small point, but that's what we're getting down to now.
A small point, but that's what we're getting down to now.
#2
Re: Bank interest
It's correct that you will have to fill out French tax returns. Even if you are taxed in uk for rental income there, the income details should still be entered onto the French declaration, together with all other world income.
You are also correct in assuming that interest from French bank account and other savings in France are declared at source to the tax authorities here, and this will be shown each year on the computer generated tax forms sent to you.
Be aware too that all bank account details (irrespective of where held) should be added in your initial tax declaration. Any changes to accounts, i.e. closures etc should be indicated as and when they occur. There are heavy penalties for non-disclosure of related info.
Finally, afaik your inactif status should not be affected by deriving a small income within France.
You are also correct in assuming that interest from French bank account and other savings in France are declared at source to the tax authorities here, and this will be shown each year on the computer generated tax forms sent to you.
Be aware too that all bank account details (irrespective of where held) should be added in your initial tax declaration. Any changes to accounts, i.e. closures etc should be indicated as and when they occur. There are heavy penalties for non-disclosure of related info.
Finally, afaik your inactif status should not be affected by deriving a small income within France.
#3
Lost in BE Cyberspace
Joined: Jan 2012
Location: Dépt 61
Posts: 5,254
Re: Bank interest
If so, it won't affect your inactif status because it's "unearned" income, ie you are not earning it by working. Inactif=econonmically inactive=not working.
However, if that's not the income you're referring to, you'd need to be more specific, ie just how "tiny" is it, and how exactly is it "derived"?
#4
Account Closed
Thread Starter
Joined: Oct 2017
Posts: 0
Re: Bank interest
Thanks for the replies. Yes, Eurotrash, I was referring to just to the interest on my account. And thanks for clarifying what inactif means. I was saying that would be our status though I'd forgotten exactly what it meant and how I came to it.
I wouldn't be averse to doing some work in France, highly unlikely in my profession, but it's not worth complicating our tax position as early retirees and extra money, though welcome, shouldn't be necessary.
That should be it from me for a while. We'll be on the ferry next Wednesday heading for Calais and the start of the next adventure. Of course, once we buy a house the questions will come thick and fast.
I wouldn't be averse to doing some work in France, highly unlikely in my profession, but it's not worth complicating our tax position as early retirees and extra money, though welcome, shouldn't be necessary.
That should be it from me for a while. We'll be on the ferry next Wednesday heading for Calais and the start of the next adventure. Of course, once we buy a house the questions will come thick and fast.