FRENCH TAX AND SOCIAL CHARGES ON EXPATRIATE EARNINGS

[Dsf]

I'm sure someone out there will know the answer !!

My wife and I moved to France in August 2004.  We have no home in the UK and the house in France is our only residenceMy wife has no employment (by choice) for the last 3 years but is well under retirement age.

At the time of moving to France I was doing consultancy work in Afghanistan for a UK company.  I am now on a 30-month contract in Jordan.

What are my tax and social charges liabilities in France??

In the UK provided I was outside the UK for more than 183 days per year then I was considered to be "tax non-resident" and ended up paying nothing to the Inland Revenue. (lucky me!!)

Does a similar scheme exist in France?

Until I resolve this the my wife can't join the French social security scheme according to a very friendly lady at the Caisse Sociale.  I also believe I will be liable to taxes if I sell my house as it won't be considered as our main residence by the notaire.

HELP

[Hegs]

I hate to say it but I think you will probably have problems, it is not as simple as the UK with more catch alls.

Have a look at http://riviera.angloinfo.com/information/1/intax.asp for a first look, then you probably need to get some professional advice.

[Will]

Before answering your question we would need to know if you are a citizen of another EU member state, and if so whether you or your wife would be eligible for a European social form, such as an E106. Also how long you have both been living full-time in France, in case residency qualifications need to be established. And whether, when doing your consultancy work, you would be based in France or in Jordan. Tax residency and domicile are treated differently in Britain and France, and it is possible to be French tax resident even if you hardly ever enter the country, as long as your main home, your dependent(s) or principal economic activity is in France. You can be tax resident in two countries at the same time, which isn't necessarily a bad thing.

But I suspect, that as we have had to ask these further questions, your situation is far from simple and contains several contradictory considerations so it would best be served by taking expert advice rather than relying on what forum contributors may say.

One thing that is definite is that until you have made a French tax return then your French home cannot be considered as your principal residence by the French authorities for capital gains purposes. So it is well worth getting into the French system for this alone, even if you make a return showing zero income.

You also need to get something sorted out health-wise in case your wife needs medical attention when you are away. If the lady you spoke to is correct and she is not eligible to join the French health system, you need to consider private medical insurance. There is a common fallacy that it is illegal to have this in France - this is only the case in so far as you can join the state scheme you can't have private cover (not including 'top up' insurance to pay the part of the fees that isn't covered by the state).