split family residency

[colin414]

Can my wife (who lives 9 months of the year in the USA) remain

non-resident in France if I declare residency here (as a British

citizen)?   I want to pay tax and contributions on my income

here (and enjoy the fruits of a decent healthcare system), but not to pay

tax on her income.   We have a French marriage contract as

well as an American one.

[LesLauriers]

Only if you divorce her.

[daniel]

from my experience : You don't need to divorce, just pretend you are splitting (your wife went back to america, bla bla). You will declare your income and pay taxes accordingly. But remember that taxes depend on the ratio "income/number of people" so your "nombre de parts" will be reduced to 1", and this will increases your taxes ... !

[LesLauriers]

The down side of the "splitting" scam is that if you die anything you leave to your "ex" will be subject to 60% tax! Not to mention that it is fraud of course!

There may be a dual taxation agreement which covers your situation - try the American Embassy in Paris for proper advice.

[PossumGirl]

There is a tax treaty between the U.S. and France.  It avoids double imposition. If she is paying taxes to the U.S. government on her U.S. income, you do not have to pay taxes on it to the French government.

R

[PossumGirl]

[quote user="PossumGirl"]There is a tax treaty between the U.S. and France.  It avoids double imposition. If she is paying taxes to the U.S. government on her U.S. income, you do not have to pay taxes on it to the French government.

R

[/quote]

I should add that, you should both, in theory, declare all your income in both countries, but you won't pay double taxes if you show that you've already paid in the appropriate country.

She might want to consult with a U.S. accountant about this.  There are forms, which she needs to fill out and submit to the appropriate authorities.

R

[colin414]

Thanks.   Unfortunately the CMU/CPAM contribution is not a tax under the treaty, hence the problem.