The French income tax system is complex, and foreigners in France are subject to a relatively heavy tax burden. In certain circumstances, foreigners may elect to become French citizens to gain tax relief.
Tax residents in France are required to pay tax on income earned worldwide (impot sur le revenue). They declare income earned during a calendar year before March 1 of the following year. Tax declarations are made to the tax inspector (Inspecteur des Impots) and the appropriate tax is paid to the public treasury, the Tresor Public, or to the local Centre des Impots. (more…)
Generally, a French tax agent’s fees are calculated by a percentage of the sale price for a property, rather than the gain. Fees start at 0.5% of the sales price and oftentimes increase another 0.4%, so typically fees are 0.9% plus VAT.
When a property is sold, capital gains tax applies at a fixed rate of 16% for those who are residents of another EU member state, 27% for those who reside in France, and 33.33% for those residing outside of the EU, unless a tax treaty stipulates otherwise. (more…)
Latest Laws for French Tax Residents.
Tax credit is available for the first five years of property ownership to French tax residents who paid interest on mortgages for primary French residences in 2007, whereby the compromise was signed after August 22, 2007. Credit is currently 20% of the loan amount and is limited to 750 pounds per year for a single, disabled person, also widows and divorcees, or 1500 pounds for married couples and PACS partners, wherein one of the partners is disabled. Those who have no tax liability receive a refund from French tax authorities. (more…)
Anyone considering either a move to France or spending a significant portion of the year in France can predetermine tax implications of such a move by understanding domestic rules, as well as pecuniary and employment factors that establish French residency and tax liability.
Individuals who meet specific criteria that establish them as tax residents of France will be subject to all mandatory resident taxation. All individuals living or working in France and those who own property in France are encouraged to consult tax professionals, as taxation in France can be complicated. (more…)
