Re: Taxes
 

Pulaski what you aren't getting is that income tax is not the biggest deduction from the household income. Charges sociales are. The total of tax and social charges for most families is about the same as NI and Tax in the UK. However, once you get into a higher salary bracket, the social charges become more onerous. The argument being that you will get a pension more in line with your income and if you are unemployed, you will get longer to find a new job whilst still receiving unemployment benefit.

Re: Taxes
 

1- We don't need marriage for our commitments. Inspite of not having any income for last 7 years, my husband has put everything in a trust for me and the kids. He owns nothing. We will obviously have to change that too but my point is that marriage certificate is a pointless paper.

2- The 5% tax country has lower crime than UK/france, it's infrastructure is the best in the world, schools are quite ok. We just don't want to move around too much. Nice/paris/london is third world compared to the other place but we prefer mountains/lakes and hence the long term decision to relocate.

3- i didn't ask for free advice. I have already paid 3 advisors with no conclusive consensus. I understand class envy, i understand socialism. Some people make say x income every year for 20 years and live off it. We may make 10x but it would last may be 1/2 years and then it ends with no visibility. So while for a regular guy with 15% effective tax gets 0.85 x every year, we have only 1.2x every year for next 20 after paying taxes. If you were being paid 800k and for 2 years only would you pay 40% to govt. The 3 units vs 2, tax bands etc. don't matter because of the high income.

4- We don't need to be in france to earn the money. I understand if i was a french company CEO and hence the earnings depended on the location.

We spoke to another set of advisors and have figured a way around it. To keep things clear and have no future liabilities from an overzealous govt. we will defer our plan by 2/3 years. thank you to everyone who responded.

Re: Taxes
 

That's good the bill for my time is in the post......

Re: Taxes
 

I know people who earn the sort of money your husband will be getting, they mostly earn it every year and they mitigate taxation by having a business structure somewhere from which they draw the money as dividends and salary. I'm not sure why waiting 2/3 years will make much difference with your current plan.

Re: Taxes
 

Probably because then he wont be employed so it wouldn't be an income tax issue just tax off savings interest which would be less.

Re: Taxes
 

Yes CS you are correct.
However, in the UK, if you are in the £1m+ bracket, then you have a lot more tax efficient options.
If you have say £1m to invest then you can wrap it in a Bond. You can then withdraw up to 5% per annum tax-free.
That is £50k a year tax-free. It is considered "Return of Capital"
If you miss a year or more then the 5% accumulates.
You can also use your annual CGT allowance of £11,100 per person offsetting losses against gains.
You also use your £15,240 per person to remove £30,480 per couple from tax.
These are all quite legal and approved by HMRC.
Mr and Mrs average never get near these options but for those who can then it is fairly straightforward for a multi-millionaire couple to be basic rate taxpayers.
If you want an example - Richard Branson.
Off topic I know but I think the topic has gone West (or East) anyway. ;)

Re: Taxes
 

You need to pay what you owe hospitals/ medical care needs to be paid and all the facilities that we enjoy need to be paid for. Look at Greece no one wanted to pay tax either!!

Re: Taxes
 

If your post is addressed to me then I indicated how wealthy people could use the tax rules to minimise or defer paying tax.
What you owe is what the taxman says you owe according to the rules.
I had a similar discussion with a friend recently and he expressed his disgust that wealthy people could do such a thing.
However, I pointed out to him that he had paid for his kitchen refit in cash - "to save the VAT". He thought that this was fair because he was managing his money prudently.
How many people pay tradesmen in cash to avoid VAT and allow the tradesman to avoid paying income tax?
It is not just the preserve of the wealthy.
If your comment is addressed to the OP then it was her that was suggesting getting divorced to avoid being taxed by the communist mafiosi.

Re: Taxes
 

Where is this low tax jurisdiction?
It may be that the salary tax stays in the place of employment.
If for example it was Zurich Switzerland then your husbands tax on salary would be in Zurich. The only things taxed in France would be the rest of your worldly income. He would however have to contribute to health care at about 8% (of total income minus a personal allowance of a few €k) unless going private or having some other arrangement..
You will also be contributing to the system by means of TVA on most goods and services + taxe d'hab and of course taxe fonciere if home owners.

Re: Taxes
 

Hi Chti,
Ilya1 has stated that isn't interested in advice although that seemed to be the point of her first post.
She has used the expressions "communist mafioso"; "class envy"; "socialism" and "overzealous government" throughout her posts and looking at her times of postings, I suspect that she is not in Europe.
I think that she will fit right in to life in France. :sarcasm:

Re: Taxes
 

I'm a little late into this thread which has achieved orbit incredibly quickly!

No one has mentioned the right, available to couples in France, in the year of their marriage (or PACS) or upon arrival in France, to be taxed separately. This may mean Ilya1's husband could instead pay tax in another country (providing he is not resident in France) and send remittances to Ilya1 by way of maintenance.

Re: Taxes
 

I assume it was directed at the OP


Tax burden and social charges are completely different bill's, tax goes to the Impots which is what the thread is about and social charges which are deducted at source unless you work outside of France are for paying part of the medical and pension side of things. Same principle as the UK Tax and National insurance although dedecuted at the same time are used for different purposes

Re: Taxes
 

I fully understand the distinction, but personally I consider all money compulsorily removed from me by the government to be a "tax".

At the end of the day any money that has been taken from me by the government is no longer available for me to spend or invest. For all intents and purposes it is all taxation.

Re: Taxes
 

Yeh but no but...

Here they are very different and I think the healthcare system reflects that as does things like paid maternity leave imho

Re: Taxes
 

Yes, we eventually get back what we pay in (social charges): healthcare, pensions, dole, family allowances, etc...., whereas "Taxes" contribute to the State Coffers and are never seen again, at least directly.