Money, Taxes and stuff...

[Boscoe]

Hi all, first post so firstly hello!

Our situation is this... We (wife, and 10 month old daughter) have decided to take the plunge and move to France. We currently live in Kuala Lumpur, and before that Moscow so we've been expats for around eight years. I've built up a business in KL over the last few years and now want to 'retire' from it, leaving it in the capable hands of my business partner.

We own a home in France already, having bought it over 5 years ago as a holiday home, so we'll be moving there... I will receive a salary of 2500 Euros a month (for consultancy) from the company in KL and expect dividends of around 20,000 p/a. I also want to deal shares (mainly on the London exchanges via a UK based stock broker) and expect to 'make' around 30,000 Euros pa from that per year (this will involve repatriating a seven figure sum from an offshore account). I also have an income of around 500 euro p/m from a website (all commission and next to no costs based in the UK)

My questions/comments are as follows... please correct me if I'm wrong!

I know I'll pay French tax on my salary from offshore, will I need to become an entrepreneur or can I just declare it on a tax return? I can set this up as I want, either as an employee paying tax in Malaysia or as a consultant invoicing from France, any thoughts?

I’m guessing I just declare any dividend on my tax return?

Will I be taxed for bringing any money ‘onshore’?

I understand the taxes for capital gains are around 30% on gains if I make more that 20,000 Euros from share trading?

The income from the website worries me as my research leaves me to believe that it’s a bad idea to have income from many things as each activity may have a different taxing body? Can I just declare this on my tax return?

Will we (the family) be eligible for health care in France as I’ll be paying tax there?

Many thanks in advance...

[AnOther]

Hi Boscoe and welcome to the forum.

I'm assuming of course that you are either British or from a European country so visas do not enter the equation !

[quote user="Boscoe"]

My questions/comments are as follows... please correct me if I'm wrong!

I know I'll pay French tax on my salary from offshore, will I need to become an entrepreneur or can I just declare it on a tax return? I can set this up as I want, either as an employee paying tax in Malaysia or as a consultant invoicing from France, any thoughts?

If your income is from outside France then you can just declare it on your tax return however if you perform ANY work in France then you will have to be formally set up under some French regime, a French accountant would be the best person to advise on the pros and cons of the options. The good news is that there is a dual tax treaty betrween France and Malaysia which could work to your advantage, but again only a French accountant can properly advise on that.

Regarding AE, there are income limits which may preclude you from the scheme, currently I belieive it is €32,000 on which you would pay social contributions at a level of  23% but check those numbers.

I’m guessing I just declare any dividend on my tax return?

Dividends AFAIK yes

Will I be taxed for bringing any money ‘onshore’?

No, but you will become subject to to French wealth tax and your status as a partner in a foreign business could be a complication.

I understand the taxes for capital gains are around 30% on gains if I make more that 20,000 Euros from share trading?

Couldn't say I'm afraid

The income from the website worries me as my research leaves me to believe that it’s a bad idea to have income from many things as each activity may have a different taxing body? Can I just declare this on my tax return?

Which is why I say you need a French accountant, places like this are a great starting point but when affairs start to get as involved as yours look to be then you cannot rely on advice from amateur forums.

Will we (the family) be eligible for health care in France as I’ll be paying tax there?

Where or whether you pay tax is irrelevent to health care, it's the social charges you would pay as an AE or employee which would entitle you that, otherwise you would have to take out private cover.

Many thanks in advance...

You're welcome and best of luck with your move.

[/quote]Oh, and if you plan to make €20,000/pa from share trading count me in please [:D][:D][:D]

[Boscoe]

AnOther, thanks very much for your response. I am indeed a Brit so visas are no problem...

I am planning on seeking professional advice, but as with any advice that's on the the clock I'm sure you will agree, it's better to get as much info as possible before going in :)

The KL company is a private wealth and asset management company so making money from money is what we do and I'm hoping a 20% return is conservative :)

I've looked at AE and it looks like it could be a possibility for the income from trading to be assessed using this vehicle (in the wife's name) and I can receive the income from KL either under the double taxation agreement or as a consultant under AE. As long as we keep the income under 50,390€ as a couple I think we'll be OK (maybe we'll get another kid as the limit rises to 75,585€ for a couple with two children!) and pay 20.5% tax and social charges.

I think I can also use spread betting as a dealing vehicle and as this is seen as gambling (in the UK certainly, and From what I read in France as well) then this incurs no tax liability whatsoever?

I've looked at wealth tax and that shouldn't be an issue, I wish it was! :)

[AnOther]

Well you do seem to have done your homework and I heartily agree about information gathering.

From what you say it would seem that whatever problems or difficulties you may encounter along the way they are likely to be ones which many of us would be exceeding glad to be wrestling with, tactical breeding excepted of course [blink] [+o(] [:D]

Bonne Chance