TheGrocer

Hi all..
We are a retired couple planing a move to France. I will be fortunate enough to buy my house without a mortgage but we are concerned on what income tax we will pay. I have read most of the taxation rules / brackets and am still confused.

My wife is 67 years old, I am 61..so I believe we will both be taxed as seniors.
However our joint income will be just under 30,000 euro p.a

Can anyone help me out with what tax we can expect to be levied...

thanks

cyrian

Have a look here: FRincTax

Im_and_Er

A lot of information on that site but in a nutshell and in round numbers for two people tax allowances mean that you only start to pay above about €23k and then it's according to the scales given so for €30k you could expect to pay 5.5% on €7000 or around €400.

If any of your income is from government pensions then they remain taxable in UK but you declare them here all the same and credit is given for the tax you have already paid there.

TheGrocer

thanks for info

bigglesworth

Grocer whilst on the subject make sure you have dealt with inheritance tax here. Not just for the house but for any estate you have in France.

TinaBee

A couple of things to prepare for if you move to France.

1. Healthcare insurance - if you wife is in receipt of a UK state pension then she is entitled to an S1 form for herself and another one for you as her dependent. This form will give you healthcare cover the same as for a French national, i.e. about 70% of the costs are covered. It is your choice whether you pay the additional 30% costs yourselves, or take out a top-up insurance to cover it.

2. If you have any investment or savings income, this will be subject to an additional "social charge" at 15.5% on top of any tax you may pay.

And a quick follow-on to bigglesworth's post - once you become resident in France, French inheritance rules apply to ALL of your worldwide estate excluding property (real-estate) in other countries. Of course to confuse the issue, the rules are changing next year to allow you to legally implement a will under English/Welsh law in France, but French inheritance tax will still apply.

EDIT (just seen from your other post that you are up to speed with inheritance)