Tax residency for non-married couple
Sep 18th 2018, 1:55 pm
#1
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Thread Starter
Joined: Sep 2018
Posts: 33
Tax residency for unmarried couple
We wanted to buy a house and relocate to France in 2-3 years time when my partner retires. Brexit has suddenly got on our way. Consequently, we are now considering options for keeping our right to enter and reside in France in the future.
The plan is get a 6 -12 months rent and as I'm self -employed and can work remotely I can apply for tax residency.
My partner, unfortunately, is working full-time having to be on site in London 3-4 days a week. Therefore he can be in France every week for 3-4 days and can't apply for tax residency
As such our concern is that he won't have rights to reside in France.
How can we prove our relationships to French authorities? Is it ok for example to have bills on the same address for a few years? Are there any other options other than getting married?
Thank you
The plan is get a 6 -12 months rent and as I'm self -employed and can work remotely I can apply for tax residency.
My partner, unfortunately, is working full-time having to be on site in London 3-4 days a week. Therefore he can be in France every week for 3-4 days and can't apply for tax residency
As such our concern is that he won't have rights to reside in France.
How can we prove our relationships to French authorities? Is it ok for example to have bills on the same address for a few years? Are there any other options other than getting married?
Thank you
Last edited by Magukat; Sep 18th 2018 at 2:19 pm.
Sep 18th 2018, 2:20 pm
#2
Lost in BE Cyberspace
Joined: Jan 2012
Location: Dépt 61
Posts: 5,254
Re: Tax residency for non-married couple
Tax residency isn't really a thing you apply for. Where you're tax resident is determined by national tax legislation or if necessary by the tax treaties between the countries concerned, and depends on your circumstances - chiefly where you spend most of your time/your working time. France's residency criteria are - if France is the centre of your family life, ie your spouse/kids live here; or if it's where you work; or if it's the centre of your economic interests. The UK's criteria are slightly different so if they clash, the France-UK tax treaty will be applied.
If you live and work (remotely or otherwise) in France, you will be tax resident in France. Your activity will be subject to French legislation and you'll set up some kind of French business structure through which you'll pay French social security contributions, which will get you into the French social security system. So there will be no question over your residency status.
Unfortunately, French fiscal law only recognises married or pacs'd partners. If you are not married and don't have a civil partnership then as far as France is concerned you are unrelated.
In France, sharing finances and/or buying a house with a non relative is in any case not great idea if you plan to leave anything to the survivor. Anything inherited from a non-relative, including a long term concubine, is liable for 60% inheritance tax. A regular poster on this site has a horror story about a neighbour who inherited from her long term but unmarried partner, if I recall correctly neither of them realised the implications and she was devastated when she found out.
I don't know what to suggest really. Would living in France and commuting back to the UK weekly not be an option? Some people do it though I must admit I wouldn't want to.
You never know - maybe they'll cancel Brexit
If you live and work (remotely or otherwise) in France, you will be tax resident in France. Your activity will be subject to French legislation and you'll set up some kind of French business structure through which you'll pay French social security contributions, which will get you into the French social security system. So there will be no question over your residency status.
Unfortunately, French fiscal law only recognises married or pacs'd partners. If you are not married and don't have a civil partnership then as far as France is concerned you are unrelated.
In France, sharing finances and/or buying a house with a non relative is in any case not great idea if you plan to leave anything to the survivor. Anything inherited from a non-relative, including a long term concubine, is liable for 60% inheritance tax. A regular poster on this site has a horror story about a neighbour who inherited from her long term but unmarried partner, if I recall correctly neither of them realised the implications and she was devastated when she found out.
I don't know what to suggest really. Would living in France and commuting back to the UK weekly not be an option? Some people do it though I must admit I wouldn't want to.
You never know - maybe they'll cancel Brexit
Sep 18th 2018, 2:45 pm
#3
Lost in BE Cyberspace
Joined: Apr 2008
Location: Hérault (34)
Posts: 8,888
Re: Tax residency for non-married couple
Tax residency isn't really a thing you apply for. Where you're tax resident is determined by national tax legislation or if necessary by the tax treaties between the countries concerned, and depends on your circumstances - chiefly where you spend most of your time/your working time. France's residency criteria are - if France is the centre of your family life, ie your spouse/kids live here; or if it's where you work; or if it's the centre of your economic interests. The UK's criteria are slightly different so if they clash, the France-UK tax treaty will be applied.
If you live and work (remotely or otherwise) in France, you will be tax resident in France. Your activity will be subject to French legislation and you'll set up some kind of French business structure through which you'll pay French social security contributions, which will get you into the French social security system. So there will be no question over your residency status.
Unfortunately, French fiscal law only recognises married or pacs'd partners. If you are not married and don't have a civil partnership then as far as France is concerned you are unrelated.
In France, sharing finances and/or buying a house with a non relative is in any case not great idea if you plan to leave anything to the survivor. Anything inherited from a non-relative, including a long term concubine, is liable for 60% inheritance tax. A regular poster on this site has a horror story about a neighbour who inherited from her long term but unmarried partner, if I recall correctly neither of them realised the implications and she was devastated when she found out.
I don't know what to suggest really. Would living in France and commuting back to the UK weekly not be an option? Some people do it though I must admit I wouldn't want to.
You never know - maybe they'll cancel Brexit
If you live and work (remotely or otherwise) in France, you will be tax resident in France. Your activity will be subject to French legislation and you'll set up some kind of French business structure through which you'll pay French social security contributions, which will get you into the French social security system. So there will be no question over your residency status.
Unfortunately, French fiscal law only recognises married or pacs'd partners. If you are not married and don't have a civil partnership then as far as France is concerned you are unrelated.
In France, sharing finances and/or buying a house with a non relative is in any case not great idea if you plan to leave anything to the survivor. Anything inherited from a non-relative, including a long term concubine, is liable for 60% inheritance tax. A regular poster on this site has a horror story about a neighbour who inherited from her long term but unmarried partner, if I recall correctly neither of them realised the implications and she was devastated when she found out.
I don't know what to suggest really. Would living in France and commuting back to the UK weekly not be an option? Some people do it though I must admit I wouldn't want to.
You never know - maybe they'll cancel Brexit
Take a look in the Read-Me: Moving to France FAQs above, in the "Partner Status" thread - France isn't at all "partner-friendly"....
Sep 18th 2018, 2:52 pm
#4
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Joined: Apr 2009
Location: Scotland & Touraine [37]
Posts: 3,018
Re: Tax residency for non-married couple
Don't rush in to buy a house.
Renting in France is quite normal and many people rent throughout their working life.
That is why most rental properties are unfurnished.
Once you are established in France, you can see if what you are proposing works for you without burning your bridges if you decide to return to the UK.
In addition, you can better assess the property market where you want to live.
HTH
Renting in France is quite normal and many people rent throughout their working life.
That is why most rental properties are unfurnished.
Once you are established in France, you can see if what you are proposing works for you without burning your bridges if you decide to return to the UK.
In addition, you can better assess the property market where you want to live.
HTH
Sep 19th 2018, 7:25 am
#5
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Thread Starter
Joined: Sep 2018
Posts: 33
Re: Tax residency for non-married couple
Thank you very much for the detailed replies. Looks like we should reconsider our working arrangements or look into PACs ...
Sep 19th 2018, 8:23 am
#6
Lost in BE Cyberspace
Joined: Jan 2012
Location: Dépt 61
Posts: 5,254
Re: Tax residency for non-married couple
I'm sure it will be perfectly possible to move to France after Brexit, and probably far simpler to jump through whatever hoops are set up, than to re-jig your whole lives now simply in order to avoid those hoops.
PACS on the other hand is certainly a good idea if you plan to inherit from each other, because there is no way round French inheritance tax for non relatives.
PACS on the other hand is certainly a good idea if you plan to inherit from each other, because there is no way round French inheritance tax for non relatives.
Sep 19th 2018, 8:46 am
#7
Born again atheist
Joined: Jul 2005
Location: Europe (to be specified).
Posts: 30,259
Re: Tax residency for non-married couple
I'm sure it will be perfectly possible to move to France after Brexit, and probably far simpler to jump through whatever hoops are set up, than to re-jig your whole lives now simply in order to avoid those hoops.
PACS on the other hand is certainly a good idea if you plan to inherit from each other, because there is no way round French inheritance tax for non relatives.
PACS on the other hand is certainly a good idea if you plan to inherit from each other, because there is no way round French inheritance tax for non relatives.
Getting married in a civil ceremony in the UK would be far easier to do.
