Legal Advice
If you are resident, it is well to remember that fixed assets must be disposed of upon death under French
Law, so it is important to set up your will. You cannot disinherit your children.
If you are non-resident you may be able to buy your property through a holding company. The shares of
this company are thereafter considered as moveable assets and are governed by the succession laws of the home
country.
In most cases the Notaire will be able to give advice on these issues and Prêt a Partir is able to translate
and assist.
Financial
Advice on transferring money to France
General Mortgage Advice
Liability to pay tax in France
Under the tax code you must pay if you are resident. The following criteria are a good guide and you are
liable if any of the following apply.
Your permanent and principal residence is in France
You spend more than 183 days a year in France
You carry out paid work in France except where it is secondary to business activities in England
Your economic interests and investments are located in France
Income tax thumbnail sketch
Personal Income Tax is referred to as impôt sur le revenue des personnes
physiques IRPP. This income tax is below average in Europe and is adjusted
in the favour of larger families. Unfortunately when this tax is added to
social security obligations it amounts to a significant figure. The combination
of direct and indirect tax then comes closer to 50% though there are a number
of exemptions.
It is not run on a pay-as-you-earn system, though this is being considered. Each resident is responsible
for declaring and paying his own tax popularly paid a year in arrears and in three instalments.
Although tax evasion is rife in France penalties can be a little stiff if you are discovered.
Needless to say, the tax system is complex and unless your affairs are simple it is best to find an expert
comptable (accountant) to complete your tax return.
A list of registered tax consultants is available from the Conseil Supérieure
de l’ordre des Experts-Comptables. www.experts-comptables.fr.
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