Jos Deuling,  Sunday, 6 August 2017

 

If you want to have a basic understanding of The French tax system, you may use this overview with resource links. The list is interesting for private individuals who are moving from the UK to France and for those already living in France.

I have included two types of links: resources with a brief explanation and resources with a detailed description. I check this overview regularly for broken links.

Overview of French Taxes For people who want to work in France or want to start a business, the tax system is not very friendly. Retirees will appreciate the system:


An extensive Wikipedia article on French taxes:


Moving to France Procedure for UK Residents Nice page on the Gov.uk website with subjects like ‘Tax on foreign income’ and ‘Tax on your UK income if you live abroad’:


Procedure for US Residents

FAQ page of the Embassy of France in Washington D.C.:


Tax residence in France Brief explanation


Detailed description


French Income Tax How to pay your French Income Tax Brief explanation
Understand the procedure for paying your French income tax:

Detailed description


Income Tax Return Brief explanation


Detailed description


Calculation of income tax - impot sur le revenu Types of tax returns

1. Impot sur les traitements, salaires, pensions et rentes viageres - Salaries, wages, renumerations, pensions, annuities.

2. Plus Value- Capital Gains Tax

Detailed Description:


3. Bénéfices Industriels et Commerciaux (BIC) - Industrial and Commercial Profits Tax.

There are two types of letting income: revenus fonciers for unfurnished lettings and bénéfices industriels et commerciaux(BIC) for furnished lettings:


4. Revenus fonciers

There are two types of letting income: revenus fonciers for unfurnished lettings and bénéfices industriels et commerciaux(BIC) for furnished lettings.


5. Bénéfices non Commerciaux (BNC)- Non-commercial Professional Profits Tax

Professional operations are taxed under the Bénéfices non Commerciaux (BNC) régime:


6. Impot sur les revenus des valeurs et capitaux mobiliers - Investment income.

I found the following remark on Internet:
‘Revenue de capitaux mobiliers" is nothing to do with property (that is immobilier ie fixed assets) - it is to do with investment income and annuities.’

7. Bénéfices Acricole (BA) - Agricultural Profits Tax.



Exemptions and reductions





Pensions Detailed description


Methods of income tax calculations

Social security taxes and contributions Detailed description.
The social security in France is funded through social security contributions:


Local/real estate taxes Brief explanation
Local taxes are levied by the state for local authorities (regions, departments, municipalities, local public institutions):








Taxe locale d’equipement
L'équipement is is everything concerning infrastructures ( roads, sewerage systems, water conveyance..). It is a tax that a city takes when you built, rebuild or extend a house . (Source: )

Paragraph ‘12.1. Infrastructure Tax’ in:


Taxe d’enlevement des ordures menageres - tax for waste and sewage collection
In the US : trash tax an sewage tax or sewer tax.
in the UK : waste disposal and collection fees, or just waste collection fees.

Non-residents and local taxes Non-residents property owners in France are liable for the taxe d’habitation and taxe fonciere.

Capital gains tax (CGT) Capital gains tax in France is called impôt sur les plus values and is a tax payable on the sale of land or buildings, on shares, and certain other personal property, subject to any exemptions, allowances and deductions that are available.

Brief explanation
Before you sell, it is a good idea to have a precise idea of how any capital gain will be taxed:


Detailed description


Wills and inheritance tax + French succession taxes Excellent .pdf file

French inheritance tax is know as the droits de succession, a strange name for a tax if ever there was one:


Wealth tax (ISF) Brief explanation


Detailed description
The French wealth tax is called Impôt de solidarité sur la fortune (ISF):

Tax and investment advice - Dixon Wilson is one of the leading firms of Chartered Accountants with offices in Central London and Paris.

- In our experience, many UK nationals find that they are saving tax by moving to France, but you need expert expatriate tax advice to achieve the full tax benefits, especially with all the French tax rises over recent years.

- Kentingtons’ service is providing tax and investment advice, in combination, to private individuals who are moving from the UK to France and to those already living in France.

Insurance (assurances) Brief explanation
Extract from the book ‘Buying a Home in France’:


Detailed description
It is not difficult to find a home insurer in France, and french home insurance rates are generally quite reasonable. However, as always you need to read the small print and use reputable insurers: