Income Tax in France
Hello all
I am retiring to France shortly and would like advice please on joining the french tax system. I will be in France for most of the year, so think I will have to become tax resident? Income is mainly state and private pension, with a little book royalty income also (very little!) Thanks in advance John |
Re: Income Tax in France
Welcome to the forum!
There are many posts of interest on this FAQ forum for general matters. Also try THIS link which should be reasonably up to date. Also don't overlook healthcare, very important! There are some unknowns due to Brexit, which we'll just have to wait & see. Generally, when you arrive here with the intention of staying, you become resident, and thus come under the French tax system. |
Re: Income Tax in France
Hi Tweedpipe...thanks...
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Re: Income Tax in France
I think France has an attractive income tax system compared with Spain and Portugal.
You can make a rough calculation with this: https://www.impots.gouv.fr/portail/simulateurs |
Re: Income Tax in France
Basically you need to research the Anglo French tax treaty Your pensions will be taxed in France and be subject to social contributions You need to make arrangements with HMRC to have the pensions paid tax free For your first tax declaration you will need to file a paper copy and you will find your local french tax office very helpful in showing you how to fill in your tax form
If you are operating as an author then you may need to register as a "profession liberale" and your earnings will be taxed in France |
Re: Income Tax in France
Originally Posted by Listen Very Carefully
(Post 12758280)
Basically you need to research the Anglo French tax treaty Your pensions will be taxed in France and be subject to social contributions You need to make arrangements with HMRC to have the pensions paid tax free For your first tax declaration you will need to file a paper copy and you will find your local french tax office very helpful in showing you how to fill in your tax form
If you are operating as an author then you may need to register as a "profession liberale" and your earnings will be taxed in France If he writes professionally (i.e. earns money) when in France, the URSSAF will be interested in his Contributions into the System. The following official link gives info on healthcare coverage for authors and the like. The "affiliation au régime des artistes-auteurs" seems to be a complicated procedure, even for French people who haven't got the S1 from the UK to complicate matters further. HTH https://www.service-public.fr/profes...sdroits/F22388 |
Re: Income Tax in France
Thanks for that dmu that clarifies things as I put "may" in my response Frankly if the OP is going to carry on writing they will be paying for their healthcare when they do not need to at this stage but of course with the B word anything can happen and probably will especially if the OP arrives post Brexit
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Re: Income Tax in France
Receiving royalties doesn't necessarily mean that the OP is still writing new books, of course.
Best bet with that would be to go to the French tax office once they are resident, explain the exact situation and ask their advice. If you are still writing then yes you would need to register it as a professional activity, but if you're simply continuing to royalties on earlier publications I don't think you do. |
Re: Income Tax in France
Thanks to all for input.
As long as I declare all my income to the french tax authorities, is it still necessary to register my royalties to a separate office/organisation, as a professional activity? I am in receipt of a state pension so the S1 should cover health care? Once I am resident in France, and paying tax here, I guess HMRC have to agree to stop deducting UK tax on all my UK income? I know the rules may change at some future date, depending on Boris, but all we can do is work on the current agreements, which hopefully will not change much if we don't crash out. |
Re: Income Tax in France
Originally Posted by JohnCa
(Post 12758905)
Thanks to all for input.
As long as I declare all my income to the french tax authorities, is it still necessary to register my royalties to a separate office/organisation, as a professional activity? I am in receipt of a state pension so the S1 should cover health care?
Originally Posted by JohnCa
(Post 12758905)
Once I am resident in France, and paying tax here, I guess HMRC have to agree to stop deducting UK tax on all my UK income?
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Re: Income Tax in France
I would definitely get along to the tax office and ask about the royalty payments. I thought that this regime was set up specifically for this kind of situation - irregular income, small amounts but you still get some benefits from the system.
I have a friend who is a journalist and she is affiliated to this - gets her health coverage and retirement, sickness cover etc for relatively little payments. |
Re: Income Tax in France
Originally Posted by JohnCa
(Post 12758905)
Thanks to all for input.
As long as I declare all my income to the french tax authorities, is it still necessary to register my royalties to a separate office/organisation, as a professional activity? I am in receipt of a state pension so the S1 should cover health care? Once I am resident in France, and paying tax here, I guess HMRC have to agree to stop deducting UK tax on all my UK income? I know the rules may change at some future date, depending on Boris, but all we can do is work on the current agreements, which hopefully will not change much if we don't crash out. But healthcare insurance is just as important. What isn't clear is whether you intend to write (and earn money) when living in France. If you do, you must register this activity as mentioned above, and pay social security Contributions into a Caisse. You would have to find out how this would work if you're also in the French S.S. System via your S1. If you intend to work here, you should ask your local CPAM when you register with your S1. If not, you'll have the same healthcare insurance as your average French. (Retirees tend to consult more often and you might be advised to take out a Mutuelle (top-up insurance) to reimburse what the S.S. doesn't reimburse, but that's another topic). All this depends on how Brexit turns out, of couse..... |
Re: Income Tax in France
In order to get HMRC to stop taking tax from your pensions you need to download and fill in the Anglo French tax form from HMRC website and take it to your local tax office in France where it will be stamped to confirm that you are tax resident in France but obviously you can only do this after putting in your first French tax return but you will get tax back from HMRC
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Re: Income Tax in France
Originally Posted by dmu
(Post 12759103)
You would have to find out how this would work if you're also in the French S.S. System via your S1. If you intend to work here, you should ask your local CPAM when you register with your S1. If not, you'll have the same healthcare insurance as your average French.
You are entitled to an S1 from the last EU state in which you worked before retiring. The S1 is issued on the basis that you're not intending to work and contribute in your new country of residence. If you do continue working in France then the UK wasn't the last EU state you worked and contributed in, and isn't responsible for your healthcare. In practice it seems that if you only work on a very small scale you can sometimes be classed as a retiree with a hobby business and it doesn't interfere with your S1 but I don't know how much that is up to the discretion of the person handling your dossier. |
Re: Income Tax in France
Originally Posted by EuroTrash
(Post 12759342)
The short answer is - if you're working in France, you're not entitled to an S1.
You are entitled to an S1 from the last EU state in which you worked before retiring. The S1 is issued on the basis that you're not intending to work and contribute in your new country of residence. If you do continue working in France then the UK wasn't the last EU state you worked and contributed in, and isn't responsible for your healthcare. In practice it seems that if you only work on a very small scale you can sometimes be classed as a retiree with a hobby business and it doesn't interfere with your S1 but I don't know how much that is up to the discretion of the person handling your dossier. His answer was "if you earn money from it then it is not a hobby". I got the impression that the FISC is less tolerant than HMRC. |
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