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Tax status


Rob G

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Hi,

We will be moving permanently from the UK to France in June this year. I will be employed on a full-time basis, and my wife will not be working. I have not yet made any attempt to understand what our tax status will be. Can anyone explain this in simple terms?

Obviously I will have to pay French income tax - can anyone tell me where i can find some useful information on the best way to do this?

Beyond this, will we be treated exactly as a French citizen - i.e. taxed on everything in France and nothing in the UK? What would happen if we hypothetically had savings in a UK bank account? Or (again hypotheticallY) if we had a UK income in addition to our French income?

Thanks in advance for help.

Rob G
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You will be a French tax payer from the day following your arrival, and all worldwide income will be subject to French income tax. You will also be subject to inheritance tax and possibly wealth tax.

French social charges (as well as income tax) are payable at 11% on unearned income, bank interest, Cash Isa's or Tessa accounts.

You should arrange for all income in the UK to be paid tax free by contacting the inland revenue in the UK. You will need to visit the French tax office closest to you in February of the year following the year of arrival to obtain a French tax return to cover all income received from the day after arrival to 31st December that year. The tax office will help you to complete the forms.

Buy yourself a copy of "Taxation in France" by PKF available from the Living France bookshop for £25 and seek professional advice to minimise your exposure to inheritance rules and taxation.

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Something that came as a surprise to me is that in France when you are married you are generally (exception made for certain types of marriage contracts) taxed together. Therefore you will only fill out one form. As your wife is not working this will work in your favour.
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