Living but not earning in France - Tax forms query

[Woodchurchzoo]

Can anybody tell me if you are resident in France but not working here do you need to fill in a tax return here anyway to declare that you are not earning anything?

Can you also tell me what the web site address is so that I can download a form?

Many thanks

[Will]

Yes, everybody resident in France has to fill in a tax return. Even if no tax is payable it will probably be to your advantage to get into the system - two benefits are that you should avoid being caught for capital gains tax should you sell your French house, and that it can make life a lot easier joining the health system when E106 forms expire as there will be proof of income on record.

It is possible to get forms via the internet, but I think it better to go to your hôtel des impots who will be able to give you the correct forms. I believe that if you lived here on 1 January 2005 you should have already made your declaration, otherwise you have to get, and fill in, a form early next year, when the 2005 tax forms will be available.

[LesLauriers]

Yes, if you live in France you are taxable on your worldwide income. Whilst a goverment pension is taxed in UK it must be declared in France.

Particularly important to have submitted a return, if you wish to avoid capital gains on your French home when you sell it, or avoid a fine for failing to submit a return.

Whilst it is possible to live here without any "income", it is unlikely that anyone would not receive interest on the capital they were living off of, and this should be declared.

[alencon]

How about if one partner is still resident in UK working and paying Uk tax (spending way less than 180 days a year in France) but is supporting family resident in France. Does either or both still need to complete French tax return?

[LesLauriers]

Difficult, the French define tax residency as the place where the family gathers, birthdays, christmas etc I guess, and the tax system is based upon the family not the individuals within the family as in UK.

Best get some good advice from PKF Guernsey or similar.

[Debra]

Since one person is definitely resident in France, wouldn't you still have to fill out a tax declaration for the whole family and its income?  Income which is earned by the UK resident and taxed in the UK wouldn't be taxable again in France because of the dual taxation agreement, but I would think you'd still have to declare it and let them decide that.

[Chrisb]

That's exactly our situation - I live here with the children and my husband works in the UK and returns for long weekends every week. He fills out an annual tax declaration in France and we do not have to pay any more tax, we both have Carte Vitales using E106, Mutuelles and TDS's (non actif: ni pensionne, ni etudiant ie.not working, nor pensioner nor student!)

Chris

[alencon]

We've been here for a over a year, registered for health insurance and paying cotisations to URSSF etc but we haven't filed a French tax return nor have we been asked to do so yet. It would be easier if I'd had a Rev fiscal figure when I affiliated instead of submitting Uk tax return in sterling etc.

I wonder if I should ask for a French tax form-too late for this year but for next February or will they eventually send me one now that I have a social sec number and I'm in the system!

 

[derf]

We've been here for a over a year, registered for health insurance and paying cotisations to URSSF etc but we haven't filed a French tax return nor have we been asked to do so yet.

I would not wait until next year, go to your local Hotel des Impots and sort it out as soon as possible.

It is your responsibility to ask for and fill in a Tax form, after filling in your first tax return you will then automaticaly be sent one each year.

[Teamedup]

  It was up to you to get a tax form for 2004's declaration from the Hotel des Impots or your local Mairie in March time 2005 and to get it in on time. And not up to the tax office to contact you. As in the UK there are penalities if our tax forms are not in on time. They may be kind, but you do need to go and see them.

Once the first declaration has gone in then they usually come automatically, but if by chance they don't, then it is up to us to get hold of one.

[alencon]

Fair enough, my lacsidasical response deserved the

So who fills out the the French returns: resident, non resident or both? Does husband declare his UK taxed income and me declare nil income. Or, as suggested earlier, just me fill out the French return and include his income as my 'worldwide'?

I used to think I was quite bright, now I'm having serious doubts....where's a wall for me to bang my head upon?

[andyh4]

UK tax - individual

F tax - family

 

There that did not hurt so much did it?

[Teamedup]

Unless it is really complicated and you really think you need an accountant, then go along and see them. Take all the necessary paper work pertaining to income and tax in the UK and anything pertaining to anything here and let them help you fill the form in.

It isn't a matter of being bright, just following the rules whether they make any sense or not, because often they don't.

[alencon]

Like your style Andy, simple works for my fragile brain at the moment and now I understand

Thanks for the advice TU,the cheque's in the post

[Ron Avery]

Les When you said "Whilst it is possible to live here without any "income", it is unlikely that anyone would not receive interest on the capital they were living off of, and this should be declared."

Can you confirm my understanding that you do not have to pay tax on capital transferred over, only the interest received.

[LesLauriers]

Can you confirm my understanding that you do not have to pay tax on capital transferred over, only the interest received. [Big Grin]

You do not pay any taxes on capital arriving in France, the only possible exception would be if it did not come from an account in your name as gift tax could potentially apply.