Tax Social Charges For French Residents


Can anyone assist us. My partner and I are considering moving to France and becoming French residents. This is facilitated by the fact that we already have a French holiday home which we could use as our French residence.
What we are trying to fathom out is the tax and financial implications of such a move. We are both 59 so under State Pension age. As such, we believe that we would not be eligible for S1. Consequently, we would need to prove economic self-sufficiency to become accepted into the French health care system. In order for this to happen we believe that we have to pay French social charges on our income. Is this correct?
Our income is twofold - UK pension income, and income from our UK based company. Does anyone know what the rate of social charges is?
The income tax position seems more straighforward with the income being applied on a household basis according to combined income levels. Again, is this correct?
Is there anything else we need to consider. we know about wealth tax, tax d’habitation and tax foncieres.
Your anticipated assistance greatly appreciated.

As well as social charges, which are high at around 17%, you will also have to factor in paying for healthcare which is 8% of your income above 10,000€

Les prélèvements sociaux sur les revenus locatifs se montent à 17,2 % des loyers imposables, soit : 9,20 % de contribution sociale généralisée (CSG). 0,50 % de contribution au remboursement de la dette sociale (CRDS). 7,5 % de prélèvement de solidarité.

If you have a UK state pension you pay no charges on that, and only 7.5% of the rest of your income above a threshold.

Just on the residency side of things, obviously you’d need to be here, living/resident before 31/12/2020 and have proof of that to “get in” (presuming you’re British) after that date and you’ll have missed the boat and being a home owner in France won’t change that (third country nationals needing visas etc.). So better get your skates on if that’s the case :wink:
Can’t help on the financial side as I’ve always worked here and paid my way like any other French person but there are many here who have first hand experience so over to them!

Thank you Jane.

From what you say the healthcare charge is 8% of income above E10,000. Is this capped?
Is the social charge of 17.2% is levied only against rental income?

Many thanks. I realise we are up against the clock. Do you know what would be considered 'proof of living in France?

You seem to have 2 registrations on here which I imagine is why your later posts have been flagged. No doubt @cat will be along to tidy things up for you.
I suggest you do some searching on this site for information about what you need for residency in France. It has been covered many times and there is a wealth of information. Just click on the search button on the top right of the page.
Izzy x

Social charges will apply to all income apart from exempt categories like state pensions.

If you look at threads about the online portal - or indeed look at the online portal itself - you will see what is needed for initial registration. And it is very minimal.

But I feel that unless you intend to become a full french resident there will be problems in the future. So be sure you want to do this. Having a holiday home and becoming a french resident are very different things. For example French inheritance rules are very strict, and inheritance tax high.

There is a lot of Ego driven misinformation about on this.
Best to go bsck to the original legal documents.
The Withdrawal Agreement gives you certain rights until 31/12/2020 (the Uk left the EU in January 2020) which includes the application of EU law on the right to reside in another member state as though you were still an EU citizen. It is the EU law that states your rights, it applies to all EU member states.
I will try to find the reference but there are about 4 or 5 circumstances which entitle someone to live in another member state. One is a job, another is self-sufficiency like a pension. One is being a student. One is being a dependent of someone who has the right and I forget the last one!
The proof of residence is often mis-stated and many people believe they need a utility bill. In fact the French regulations give a list of what can count as evidence of intention to be a resident and utility bill is only one. Any rental agreement or an attestation from your host that you are were here before 31/1/2020 should suffice. The “fact” of your being here must be clear, your intention is open to interpretaton but they will take your word for it it seems. I’m registering my S1. Other people sign on as “auto-entrepreneurs” and start a small business (needn’t be much, craft, offereing a service, etc. will do). You can apply to register your car or move your driving licence - neither necessary straight away but it shows intention. President Macron says we are welcome and the rumour is that the athorities are being helpful.

That has now changed. You used to be able to register as an AE with a next-to-nothing business and then get access to French Health Service. It now has to be a sustainable business turning over something like 9k. Others know the detail better than I…

We have a sustainable, reasonably sized business in the UK, which will continue to trade. I presume the requirement though is to set up a business in France.

thank you for that correction, Jane

You don’t indicate how you pay yourselves from your UK business - salaries or dividends? There is an important difference in terms of social contributions, where dividends see a flat tax of 17.2% +12. 8% social charges (total 30%) applied to dividends drawn down, and salaries just go into your overall taxable revenue (being taxed and NI applied at source under PAYE), some (all?) of which may be excluded from French taxation under the double taxation treaty between France and the UK.

Just reading this, it seems that drawing dividends from a business as a non-Dom attracts a 10% withholding at source which you can claim back as tax credit from French tax administration.