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    A Move to France Doesn't Have to Be Taxing
    by Howard Farmer


    Savvy investors who have realised the potential of buying property in France would do well to get up to speed on the taxation laws of the country.

    Already, the UK and France have a double agreement which means tax is paid in one country or the other - but not in both.

    Non-residents who own French property may be subject to income tax on anything earned within the country, such as renting out a home.

    In terms of taxation, the definition of a resident is anyone who has stayed in the country for more than 183 days within a calendar year, although these days are not necessarily consecutive.

    French residents will be charged if they earn the majority of their money within the country, if most of their work takes place there or if it is where their substantial assets are.

    The tax burden can be reduced under a system which allows a household's combined taxable income to be divided by the number of people living there, including a spouse or dependent children.

    Two local property taxes, known as taxe fonciere and taxe d'habitation, are collected centrally then redistributed to pay for services including refuse collection, street cleaning, schools and other community facilities.

    French Holiday Lets

    A word of warning for foreign property owners - French Tax on letting income! If you rent your property, even for a few months, you must declare your income in France every year! If you do not declare your income, the tax administration in France will tax you on the level of 25% of the estimated renting incomes, without any deduction! You will also pay penalties and interests for the delay.

    Howard Farmer
    Articles about Living in France
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    France Property

    We have French property from 15,000 euros - stone houses, land and farms. Residential, vacation and investments property for sale across all of France. Investments: leaseback, buy to let and reversion property.

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