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.
If you are planning on moving to france then go for it.It’s a good thought.