A Guide2 Income Tax in France

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Whilst there are a number of treaties in place between France and other countries to protect expatriates from double taxation, it is possible that you could be eligible for taxation here, even if you consider yourself a non-resident.  If you are eligible to pay tax in more than one country, one of these treaties may be the factor that decides where you pay income tax.

As a rule, if you spend more than 183 days in France in a calendar year, or your permanent home is in France, or if your main business activity or financial interests are here, you are likely to be subject to French income tax.

There are 5 different tax bands (2009) in place in France

Income Thresholds before paying Tax in France - 2008  

Regulations prevent any taxpayer from being charged more than 50% of their gross income for combined income tax, tax on assets, and local taxes.

The tax year in France runs from January to December.

Taxes specific to buying and owning a property are covered under the article GUIDE2BuyingProperty, but there are some other taxes you need to be aware of. TVA (Taxe sur la Valleur Ajoutee) is VAT in the United Kingdom.  The current French rate is 19.6%, although there is a reduced rate of 5.5% payable on certain goods.

All businesses in France are required to pay Taxe Professionelle, and this is based on the annual rental value of tangible assets.

On the positive side, tax credits may be available for things such as childcare, children's education, hospitalisation fees for a dependant, donations to French charities or political parties, union fees or purchase of a car that runs on an alternative fuel.