Working: based out of paris, but living in the UK.

[feef]

Hi.

I may have the opportunity to take a job with a US company, based out of their Paris office.

My hope, and intention, is to rent an apartment in Paris and spend maybe 1 week in 4 or 5 out there; the rest of the time working from my home office in the UK.

Can anyone give me some advice or pointers for things that I should look for, or will need to be paid?  I'm not sure, at this stage, how my salary would work, whether I would get paid in USD or GBP  as a "contractor" via my own company in the UK, as a UK employee (which is unlikely as they don't, yet, have a UK entity), or in Euros as an employee of the French office.  If the latter, then would I have to register for and pay French income tax and whatnot, despite me spending most of my time in the UK?

Also, in addition to the rental charges on an appartment, what other charges would I expect to have to pay?

tia

Andrew

[andyh4]

Charges to expect:

rent

service charge for communal areas - could range from a bit of cleaning to repair of the lift and roof!

Utilities - including metred water, sewage, electricty, gas etc..

Heating - if flats are not individually heated

Taxe d'habitation - annual

Rubbish removal

 

Tax position is impossible to judge until you clarify your status with the company but possible scenarios are:

French company employee - french income tax BUT also UK income tax for the portion of the time you spend working (not living) in the UK.  You only get taxed once but the income would be split proportionately between the 2 countries and it could even work out well since you might get 2 tax free allowances one in UK and one in F.

As a UK self employed person, UK taxed and you may be able to keep it just at that, by claiming that work outside of the UK is part and parcel of your UK work activities - but you would need professional advice on that.  Otherwise a tax split between the 2 countries.  You might well be able to deduct fares between the UK and France from your salary but the UK tax authorities might take a view that this is a permenenat situation - in which case after a year this would stop and if your UK company paid the fares it would be deemed payment in kind.

Working for a UK subsidiary - probably 100% UK tax.

Once you have a clearer idea of the employment relationship I would seek professional advice form an international tax advice/accountancy company about how to manage your tax afffairs - and make sure they are versed in UK and French tax matters.  That would cost you more than going to your local accountant, but paying say KMPG to getthe right advice is better than paying Blogs and co half the price for wrong advice.

 

[Mikep]

For just ten weeks a year (and probably only 4 nights per week when you're there), it might be a lot simpler to operate as a UK-based consultant and use a simple hotel in Paris (depending on which part, obviously). You wouldn't be liable for French tax or social charges, as you're there for less than six months in any calendar year, and your employer would make very substantial savings on your costs of employment which they should be prepared to share with you. You may be able to negotiate that they pay your expenses in Paris, or include an allowance in the contract fee. Either way, you can claim necessary expenses against your UK tax bill, which might be more difficult with a rented apartment. Same for flights.

There are disadvantages - you wouldn't be entitled to healthcare or "social" benefits such as unemployment pay or pension.

Good luck - I did it for three years, although spending fewer nights there than you're planning.

[P-D de Rouffignac]

I endorse Mikep's solution as the simplest and most cost-effective, and considering the small amount of time you would be spending in Paris and the fact you have your own UK setup already in place. I did this in a similar way some years ago, particularly when on assignments for the European Commission in Brussels. Provided you are contactable wherever you are - Eurostar and mobile phones revolutionised my life at the time - there is no need for a fixed base in Paris. In addition to looking at hotels, you might check the booming market in short-stay self-catering studios, which give you a bit more of a feel for the French-way-of-life even for the few days you may be there each time.

Regarding payments, little difference in the source of your 'fees' and your UK bank can open a Euro account for you - I had one even before Britain joined the EC and the Commission paid everyone in Ecus (European currecny unit, fore-runner of the Euro).

Best of luck, sounds like a fun way to earn a living - P-D de R.

[feef]

All valid points..

The only reason I was considering renting an apartment was so I could use it at other times as well, or for family and friends to borrow it. It sounds like, in that case, I might be as well treat that as a "personal" rental which I can happen to use when working out there.

This is all hypothetical for now, of course, I don't have the job yet :)

[Sprogster]

feef,

At the moment residential property prices in Paris are booming, unlike other areas of France, with average prices up 20% last year alone. As a result the cost of rentals are escalating, excacerbated by a serious shortage of availability and you can end up paying a fortune for a shoebox!.

Therefore, make sure you factor this into your costings.