The income tax rate in France is moderate, but then social security is added. The cost of maintaining the social system in France is astronomical and so are the contributions from tax payers. First we need to determine who is liable for French taxes. Secondly, France has double taxation agreements with many countries, which means that if you pay taxes in one country, you use that as a tax credit in the other country.

You are tax liable in France if one of the following applies:

• You spend 183 days or more in France in one calendar year.
• Your permanent home or principal residence is in France
• The source of your professional income is in France, unless it concerns a secondary source of income and is part of foreign business activities.
• Your main source of investment, income or business is in France

 To do your own tax filing is not an easy task, unless your filing is very basic. Best is to hire a accountant to assist you. Income tax in France is usually paid in installments.

The system of double tax agreements is not all that complicated but in real life you have to be knowledgeable with all the tax regulations and bureaucracy. This is why many foreigners choose for a offshore account to protects their assets. The USA is the only country that will tax you on income, no matter where the source of your income is located. As "overseas" tax filer. there is a substantial deduction and there is a "double tax" agreement between France and the US.

When you leave the country you need a tax clearance statement. All taxes due, until the day you are leaving, must be paid. The tax inspector will estimate your tax liability based on income and deductibles and if the estimate turns out to be to high, you may ask for a refund. It is important to obtain this clearance statement, without it you will have trouble getting your belongings out of the country.

David Hampshire wrote an excellent book about tax issues and much more, you can purchase it on our site.

Current temperature in Paris, France

Disclaimer: By using the contents of this site you accept our user agreement. All contents are intended as study material and a general guidance. It does not substitute professional legal advise. We advise readers to contact the authorities before making any legal or tax involving decisions.

 Home

 Spain :

• Legal, Visa, taxes, importing, legal help,wills, taxes in real estate, double taxation ,
• Health and Insurance, property insurance, health insurance, pets,
• Real Estate in Spain, location, buying process, finance ,
• Financial services, banks,
• Living in Spain, moving to Spain, clubs
• Education, Learn Spanish in Spain

France

• Legal, Visa, taxes, importing , wills, taxes in real estate, double taxation ,
• Area Information, The Provence and Côte d'Azur
• Health and Insurance, property insurance, health insurance,
• Real Estate in France, location, buying process, financing , clubs, running a B&B,
• Financial services, banks,
• Download page: Visa application, building permits etc.
• Education, Learn French in France