I'm finding myself getting a bit tied up working out my tax liability and was hoping for some help. When/if we move to France my income would be from rental property in the UK. I will pay tax in the UK @ 20% and will receive the usual tax free allowances (currently about 7.5k for a single person). There are two of us so our combined tax free allowance would be 15k.
So far so good. With the double tax treaty I should not pay tax twice. My question is; what other taxes will I have to pay on the net I receive? I understand I will have to pay taxe d'habitation, which will be based upon the property I live in, but would I have to pay other taxes?
A rough example based upon our circumstances - a joint income of 30,000 pounds would attract about 3,000 in tax. Net income after tax would be 27k for the two of us. Would the only tax left to pay be taxe d'habitation? If you can help it would be very much appreciated
Thanks, Martin.
No, unfortunately France is 100 times more complicated and the best advice I can give you is to ask in the lettings group here on SFN. I presumed rental property income was treated as any income, if you have a business in the UK for example but live in France and are resident for tax purposes, then you'll pay tax in France rather than the UK even if there's no trade done in france. But I'm not an expert on this so please seek advice in the lettings group ;-)
Bonne chance !
Hi Andrew,
Thanks for your response. I was under the impression tax from UK rental property was deducted in the UK, subject to the usual tax tax free allowances.
The trouble is figuring out what we'd have left to live on is a nightmare. Compare that with the UK, given most peoples' circumstances, one could quite easily work out ones net income since you'll only pay income tax, NI and council tax.
If you move to France then I understand it that you'll be taxed here and not in the uK regardless of where you earn your income. I also think you'll have more than 3000 a year to pay here - social security cotisations, income tax, taxe d'habitation (and taxe foncière if you own the property). As a guide, it isn't the income tax that costs a lot here, it's the social security charges. the auto entrepreneur status has some of the lowest taxes/contributions by a long long way and there you'll be paying roughly 20% of total income in taxes/cotisations. You should get some replies from others in the same/similar situation who can give you specific advice, or seek professional advice. This one comes up quite often. Sorry I can't be more specific but I live and work in France and have nothing in the UK!