Tax Status after a trial period in France

[Blossom]

We intend to rent a house in France for a six month trial. If after six months we decide to stay permanently, do we become French tax residents on day one of the seventh month?

[Will]

Why six months? The French have many definitions of 'residence' which can apply to you from the day you arrive to live there (tax residence), three months (when non-Europeans have to obtain titre de sejour) to five years (to qualify as a resident under certain European rules).

 

[Ron Avery]

Good questiuon. If you are on holiday in France for 6 months and went back,  you would have no tax liability in France.  If you decided to stay, you could arque that you were tax resident from day 2 of your stay in France.  However, if you decided to stay in France you are unlikely to stay in France without going back  to the UK to arrange your move, sort out your tax and other affairs etc, so in that case your residence would start from the date that you left the UK permanenently.

You also, to avoid double taxation, have to notify the UK tax man that you have left the UK on a certain date and also if applicable you would need to arrange for am E 106 if you are retiring to France below age 65 that to my mind would all be after the trial period finished..

[Sunday Driver]

If you do decide to live in France on a permanent basis after the 'six months', then your first tax declaration will be due in May 2009 at which time you simply declare your 2008 income from day two after your arrival here. Any short trips back to the UK in the interim to arrange your 'permanent' move would be incidental.

Then, as Ron says, you can notify HMRC and get a refund of all the UK tax paid since the date of your arrival....[;-)]