Description:

Whilst there are a number of treaties in place between France and other countries to protect expatriates from double taxation, it is possible that you could be eligible for taxation here, even if you consider yourself a non-resident.  If you are eligible to pay tax in more than one country, one of these treaties may be the factor that decides where you pay income tax.

 

As a rule, if you spend more than 183 days in France in a calendar year, or your permanent home is in France, or if your main business activity or financial interests are here, you are likely to be subject to French income tax.

 

There are 5 different tax bands (2009) in place in France:

Earnings (Euro)	0 to 5852	5853 to 11673	11674 to 25926	25927 to 69505	69505 +
Tax rate	0%	5.5%	14%	30%	40%

 

Income Thresholds before paying Tax in France - 2008  

Household Size	Income
Single Adult	€11,404
Single Adult + Child	€14,340
Two Adults	€17,184
Two Adults + Child	€20,027
Two Adults + Two Children	€22,871

 

 

Regulations prevent any taxpayer from being charged more than 50% of their gross income for combined income tax, tax on assets, and local taxes.

 

The tax year in France runs from January to December.

Taxes specific to buying and owning a property are covered under the article GUIDE2Property Purchase Process, but there are some other taxes you need to be aware of.  TVA (Taxe sur la Valleur Ajoutee) is the equivalent of VAT in other EU countries such as the United Kingdom.  The current French rate is 19.6%, although there is a reduced rate of 5.5% payable on certain goods.

 

All businesses in France are required to pay Taxe Professionelle, and this is based on the annual rental value of tangible assets.
This tax will be replaced by a new one in 2011.

 
On the positive side, tax credits may be available for things such as childcare, children's education, hospitalisation fees for a dependant, donations to French charities or political parties, union fees or purchase of a car that runs on an alternative fuel.

Disclaimer:

Tax is an ever changing and complex matter.

Although every effort is made to offer the correct information,this summary should merely be seen as a general overview on income taxes.

Guide2Languedoc cannot be held responsible for the results of actions taken on the basis of information contained in this summary.

Readers are encouraged to seek professional advice before they take any decision.

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