Boris-canadabound

Hi, we are thinking about moving to France. My partner would be working on a contract basis for a non-French (non UK either) company, mostly on overseas projects. I realise the French taxation system is complicated. Wondering if better to be self-employed or set up a company.
Any tips / useful advice appreciated.

cyrian

Hi Welcome to the french forum
Have a look at this post http://britishexpats.com/forum/showt...ighlight=italy
This has been covered several times already - if you read this post and then try a further search on the different keywords that arise.
The costs in running a small business can be large including Taxes and Social Costs and figures of 50% have been quoted.
There are also turnover limits which will dictate your options.
Others with experience of this topic will come along soon to advise.

Also try searching for "moving to France" and see what appears.

Please note that the unemployment rate in France is not good if you are expecting to find employment.

Good luck

Boris-canadabound

Thanks for the info. Just to clarify, my partner would have a job in place before we moved (i.e. the contract work) - I was just wondering how best to deal with the tax side of things.

For myself, I would not expect to find employment easily, but have a few ideas to try.

cyrian

Yes I understood your question but you have to consider tax + social security costs + additional health insurance top-up which can add up to 50% on income.
If you search for the threads you will get more information and others with experience of these matters will advise.

dmu

Hi, you'd do best to consult a French Expert-Comptable who can advise on which business structure is most suitable. As mentioned, it's not only the tax side of things (= company tax and income tax), but Social Contributions, professional insurance, and other dues which are based on the declared salary, which are crippling and have to be paid out before any salary begins to come in...
Your partner would have basic healthcare coverage, and would be advised to take out a Mutuelle (top-up insurance), but if you aren't legally bound, you wouldn't for long, unless you find employment. Some one will come along to say how long the reciprocal social security agreement between France and the UK lasts.
If your partner can work anywhere, then you might consider choosing a country other than France. With high unemployment, it's not the time to look for work for yourself here, however good your French is.

Boris-canadabound

Many thanks for your replies. We will have to do some more research and give it some careful thought. We don't really want to return to the UK and it seems that anywhere in Europe would be difficult regarding finding work. I left my heart in the Limousin and I thought if we already had an income arranged we'd be ok, but the replies have left me wary of France now. It would hate to move there and be so heavily taxed that it would be a struggle to get by.

Im_and_Er

If no work is performed in France then you would not have to set up a business here and it could be performed through the UK as self employed instead.

You would pay your tax in UK and because of the dual Tax Treaty be credited with that against any French liability.

cyrian

How about healthcare?

dennerlymum

having your own business and employing yourself you could apply for the E101???
You could also just pay NI in the uk and tax here in France if you choose with this option

cyrian

And for the perhaps non-working partner?

dmu

That would be my worry. Is the E101 another name for the reciprocal S.S. agreement between France and the UK? How long is it valid for if you're resident in France? And are "partners" covered by it if they aren't married or pacséd? No one's answered this question....

Im_and_Er

One small step at a time

Boris-canadabound

Thank you - that is interesting.

One more question: it sounds as though France doesn't really recognise 'common law' relationships (for want of a better description as I realise that French law is based on a civil rather than c/l system).

Im_and_Er

You can enter into what's call Pacte Civil de Solidarité or 'pacs' in France.

http://www.frenchentree.com/french-l...e.asp?id=33847

Concubinage is also still recognised and is the official term for cohabitation of heterosexual and (since 1998) homosexual couples.

They do like to make things complicated don't they

As a general point, where the precise nature of a relationship is integral to a conversation or topic it's important to state exactly what it is rather than just say 'partner' as the term itself has no real definition either in social or legal terms.

dmu

Agree with the use of the English term "partner". The French equivalent is "copain" or "copine", which in fact ranges from "pal" to "concubine".
If the OP and partner are considering buying property in France, then they'd be advised to get "legally bound" by marriage or PACS in order to avoid Inheritence problems, but I'm getting off-topic....