If you are planning to settle in France or simply own a property on French territory, it is crucial that you are aware of the main income tax rules in France.
You are considered a tax resident of France if you spend more than 183 days a year on French territory or if the majority of your personal and professional interests are located there.
Since the French tax system is cumbersome, you are advised to seek assistance if your personal situation may lead to confusion.
If you are fiscally domiciled in France, you are required to declare your entire income, including that of foreign origin. In this case, international tax treaties are necessary to avoid double taxation (it is worth noting that France is one of the countries that have signed the most tax treaties in the world).
Warning: in the absence of a tax treaty, French law takes unconditional precedence, resulting in taxation in France of any income that has already been subject to taxation in another country.
Are considered as income of French origin, all income generated by an activity undertaken on French territory:
Further:
Progressive tax system applicable to the income of 2020:
Progressive tax schedule applied to 2020 revenues |
|
Income brackets |
Tax rate applied to the corresponding bracket |
Up to €10084 |
0% |
from €10085 to €25710 |
11% |
from €25710 to €73516 |
30% |
from €73516 to €158122 |
41% |
€158123 and more |
45% |
The fact that you are not a French tax resident does not mean that you do not have to declare anything in France: indeed, as mentioned above, you must declare all income of French origin.
Therefore, you must declare the following income:
Warning: Non-resident taxpayers are not subject to the progressive income tax, but are taxed at a minimum rate of 20%.
In any case, it is worth noting that filing an income tax return in France is mandatory if you earn income in France, whether you are a French resident or not.
If you fail to do so, you may be faced with a flat tax, penalties or surcharges and default interest.
You can of course count on us when it comes to tax challenges in France!!!
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