Yes you declare what earnings you have made any place in the world to all countries you have an income from and you pay tax on earnings in that country but declare it in all countries. You wont pay any extra tax its just the hassle of paying and completing tax returns in the UK and France each year
My understanding is that worldwide income has to be declared to the FRENCH tax man.
Also, just to reiterate @Helenochka 's point. It can be useful to have rental income in the UK which is declared in the UK and uses up your tax-free UK allowance and if two of you own the UK property you both get your tax free allowance.
Sorry correction on my point.
Talking with my accountant you should declare your income from all world wide earnings to all Tax Collectors but you only pay tax in country for what you have earn in that country
I agree yes its just me and my son coming over to France and I have put all my properties into a Trust for my older Children (legal nightmare for them if and when I leave this mortal earth). This will all be sorted with legalities taking care of before I move to France.
Sorry Robert, not sure your tax advisor is communicating well with you. Your worldwide income will determine here in France what tax bracket you fall into. If you have investment income (other than property) OUTSIDE France you will pay tax on that IN France.
Not sure your accountant is giving you good advice.
As a French tax resident then yes you have to declare your world wide income as that dictates the various tax bands you fall into and subsequently pay tax on in France.
As for Uk rental income it is only that which you declare in the UK, not your world wide income.
The tax that is due in the UK is paid to HMRC and a credit given against your wirld wide income declared in France.
Thatâs it in simple terms but as ever there are other things to factor in such as different % levels of tax in UK and France.
I would much rather pay tax than not.
The French are very suspicious of Trusts (less so if property) so read up on the annual reporting requirements here,
yes I have taking note on all the above thank you
At present I am UK Tax resident i am not in France yet. Hope to have my property by end of May and looking at a few others I want to purchase for either holiday rentals or private rentals in France.
For now I have to declare all in the UK and will do a tax return in France until I am a resident.
Hope to have my Visa by June July with a good wind behind me.
What visa are you going for? Be aware that if a business visa for running property rental you will need an avis favorable on your business plan before you put in visa request. Which could make June a bit tight.
Maybe a typo, but you donât need to do a tax return in France until you are resident.
Thank you
I am going for a Visitors Visa for the 1st year then the plan is to turn the rentals into a business so I can apply for the Entrepreneur Visa but its early days yet June is most likely a bit tight and it might be July
I admire your optimism but surely the very nature of a rental is a business. I am sure you have thought it through but business structure in France is very different to the UK and you are currently a non EU resident applying for a visitor visa.
What will happen if you purchase some French rental properties and your business plan is rejected?
I have previously wished you well in your endeavours and continue to do so but I cannot help thinking that you might be putting the cart before the horse.
having just got off the phone with my Visa Application consultants and they have confirmed that i would tick the box for the types of visa I am looking to do.
I am looking to purchase 2 properties that will generate a monthly income of say 980 euros per month so I stay below the threshold for passive income for my 1st year then I would be putting in more than the minimum investment required to start a business plus I would be employing myself.
They dont seem to think its a problem, but if it is I just get another visitors visa and continue to stay under the threshold for passive income.
I dont need anymore than 15,000 euros per year as an income as I will also have my UK business that generates a monthly income for me when I need to take any out of it.
I agree its more complicated than the UK but I dont see it as an issue.
What you write surprises me as it is NOT my understanding of the rules. Can you provide a reference to the authority of this threshold for passive income?
Perhaps terminology being used is different?
But that amount would probably be in Louer MeublĂ© non professional category which is classed as work by visa authorities and generally like to see a higher turnover to achieve income needed ro live here. (A âŹ980 turnover will only generate around âŹ5 or 6000 income)
I am using a team of consultants that will make sure my visa is successful ensuring I have all that is required. that includes, Visa, Insurance, legal, etcâŠ
For my Visa I only need to show I have just under ÂŁ30,000 for my 1st year. That I can do easy. I can also show an income if needed.
While living in France on my Visitors visa I can earn a passive income up to 24,000 euros per year that is what the rentals will be for as they will generate an income lower than this.
I also have my IT consultancy business in the UK that I can still work for as long as non of my clients are not linked or based in France. From this I can show a monthly / yearly income if needed.
As well as this I have a widows pension so I dont really need to take a salary from my business at all. So will keep my money in the company until I want to purchase more properties to invest in.
Then I have my accountant do my UK tax return for me, in this I declare my UK and France income, but only pay tax for the UK income.
I do a France Tax Return for my French Income and declare my income form the UK.
Does mean lots of paperwork and providing evidence but I dont mind that.
Not going to go into it too much on this thread as I have done it to death on another.
No matter what I will generate enough of an income from UK and French investments that means I can semi-retire and enjoy my life in France with my son. I will meet the minimum monthly income of 1,400 euros when we look at my savings, plus my income both from the UK and France
How will that align with the attestation that you will be asked to sign confirming that you will not work while on a visitors visa?
I dont know the legalities of it but both my Visa specialist and my legal expert have people who have had jobs for their own companies in the UK and had a visitors visa.
It has something to do with proving your proving you have the funds to support yourself and any family members while staying in France, BUT they made it very clear I can have no association with a French company as that would be a breech of the conditions you are granted your visa.
You canât work at all in France on a visitorâs visa so is it safe to assume that youâd be going back to the UK to do any actual work?
You seem to have been listening people who are saying what you want to hear. As far as France is concerned a visitor visa is for a visitor.
If you are planning to do his then you should inform yourself of the legalities. And just because two people have done this without penalty does not make it legal. In France it is your responsibility to understand and adhere to the law.
We are really not trying to wind you up, but people have been caught out by this and ended up with horrific fines.
You need to look at the tax implications, the immigration implications and the social security implications. It seems your consultants are picking and choosing what they tell you from these.
French law on social security is extremely clear that contributions must be paid from the first euro if one works when physically on French territory. And that companies employing people in France must register. Like this
https://www.tfe.urssaf.fr/portail/accueil/s-informer-sur-offre-de-service/essentiel-du-tfe.html
Of course as director of your own company you could opt to pay corporate tax in France instead I believe.
And at the end of each year you have to declare all your worldwide income in France, so it is very easy for the authorities to see. Many manage this for the first year, but then come unstuck.
With a visitor visa you can run your LMNP passively up to âŹ15,000 with no problem. Wonât earn you much with agent fees but your choice.
You cannot work remotely for your own company. France has no digital nomad visa.
France is hugely bureaucratically complicated and intwined, and based on French cultural understanding. The differences may be subtle but they have huge influence.
Take care.