A Guide to Taxes in France

When it comes to taxes, all the countries in the world have their own politics. You will never see a country similar to another from this point of view, and this is actually normal. In this article, we will talk about the taxes in France so that you understand very well this aspect, before moving to this country.

Once you are a resident in France, you are actually liable to pay taxes in this state on your income worldwide. The social security system here is one of the best in the world, but it is paid for by high social charges as well as French taxes. The country has not more and not less than three main types of personal taxes. The first one is the French income tax, the second one represents the social security contributions, whereas the third one is the tax on goods and services. Furthermore, you will also need to pay occupier’s tax, and in case you plan to sell a property or a land, then you must consider capital gains as well. However, by knowing exactly what each of these taxes involve, it will be a lot easier for you to live in France and know how things work here.

If this state is your main place of residence or home, or in case your spouse and kids live in France and you are the one who works abroad, then you should consider a French tax resident. You are liable to pay taxes here if you are resident in this state for more than 180 days, if your main occupation is in France, or if your most substantial assets are in France. Another important detail you must know is that the state has tax treaties with several countries that enables certain residents in order to avoid dual taxation. As mentioned earlier, official residents pay the necessary taxes on worldwide income. This includes earnings from employment and investments and also from dividends, pensions, and bank interest.

In 2019, this country introduced a PAYE income tax system, which is quite interesting. It actually means that tax is now deducted from the employee’s wage. Even though PAYE is very common in other countries, the new French system will work quite differently this year. The amount of money you must pay depends on your income. Then, if there is any outstanding tax, it must be settled by the end of the year. If you need an expert for calculating your taxes, then it is highly recommended to contact a tax specialist. Non-residents must pay tax on their French-sourced income, and the property tax for them in this state is 19 % for EU citizens and 33.33 % for the others. Also, keep in mind that if you must complete a tax return then you will most probably be sent a completed form to check, amend if it is necessary, and then return. In case you don’t get one then you should go to your local tax office and take it from there. However, all these formalities are not as complicated as they seem and you will certainly manage to successfully solve all these situations.

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