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Income Tax in France

Income Tax in France

Old Nov 2nd 2019, 6:43 am
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Default 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
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Old Nov 2nd 2019, 9:09 am
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Default 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.

Last edited by Tweedpipe; Nov 2nd 2019 at 9:21 am.
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Old Nov 2nd 2019, 6:01 pm
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Default Re: Income Tax in France

Hi Tweedpipe...thanks...
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Old Nov 2nd 2019, 6:32 pm
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Default 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
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Old Nov 3rd 2019, 9:52 am
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Default 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
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Old Nov 3rd 2019, 11:32 am
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Default Re: Income Tax in France

Originally Posted by Listen Very Carefully View Post
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
I don't believe that "profession libérale" covers artistic work. In addition to the Tax issue, the OP should also register for heathcare coverage. If he is in receipt of a UK State Pension, he should apply for the S1 form for coverage 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




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Old Nov 4th 2019, 11:52 am
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Default 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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Old Nov 4th 2019, 7:19 pm
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Default 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.
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Old Nov 4th 2019, 8:49 pm
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Default 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.
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Old Nov 4th 2019, 10:28 pm
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Default Re: Income Tax in France

Originally Posted by JohnCa View Post
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?
If you engage in any professional activity you need to register it. I guess that receiving royalties for a book you have completed, is not a professional activity because you are not professionally active. Writing a new book, is.

Originally Posted by JohnCa View Post
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?
It's not quite as simple as that because certain types of income remain taxable in the UK, eg UK government pensions, rental income from UK properties etc. All the details are set out in the France-UK tax treaty. There is a dual taxation agreement to ensure that you don't pay tax twice on the same income.
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Old Nov 5th 2019, 1:37 am
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Default 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.
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Old Nov 5th 2019, 8:35 am
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Default Re: Income Tax in France

Originally Posted by JohnCa View Post
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.
All world-wide earnings must be declared to the French Tax Office and, if you're resident here next Spring, go along to your Tax Office and get the paper forms, making an appointment with an advisor to help you fill them in.
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.....
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Old Nov 5th 2019, 11:23 am
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Default 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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Old Nov 5th 2019, 5:23 pm
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Default Re: Income Tax in France

Originally Posted by dmu View Post
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.
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.
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Old Nov 5th 2019, 6:46 pm
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Default Re: Income Tax in France

Originally Posted by EuroTrash View Post
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.
Several years ago I asked a friend who is an expert comptable regarding this for another BE member.
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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