zrx1100 Posted October 18, 2005 Share Posted October 18, 2005 We are hoping to move to France next month and having read a lot of the posts on here about tax/social charges on savings interest and endowment policies I am starting to get a bit worried. What I mean is, we like to think that this move will work out for us, but you never know, after a couple of months we/the kids might not like it, something might happen in the uk to prompt our return etc, you don't know. What I am concerned about is while we are initially here (staying with family while house hunting) we will get a bit of income from our house sale money and will be cashing in some endowments; will I have to pay tax/charges on these even though this might not be a permenant move. Basically, is there a period where your stay here changes from say a holiday/visit to permanent residency, if so when do I have to declare these to the tax office in france? Sorry for the long post, hope it makes sense. Link to comment Share on other sites More sharing options...
Nick Trollope Posted October 18, 2005 Share Posted October 18, 2005 [quote]We are hoping to move to France next month and having read a lot of the posts on here about tax/social charges on savings interest and endowment policies I am starting to get a bit worried. What I mea...[/quote]If you are tax resident in France, then you are liable to pay tax on all your income (including savings interest, but obviuosly not the capital). However, it is not reasonable for the French tax authorities to say that you are tax resident if you return after 2 months.So I wouldn't worry about it. After you have been here for 183 days and decide to stay (or you decide to stay at any earlier point) then you will become tax resident.It appears that the definition of tax residency is starting the day after you decide to stay here permanently (do a search on this forum for the exact wording). If you never decide, then the tax authorities will decide for you (probably after 183 days).If your capital is worth alot (can't remember how much, but on the thick side of 1/4 million), then you may also be liable to wealth tax (on the capital).Ask an accountant (in France!!). Link to comment Share on other sites More sharing options...
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