{"id":13689,"date":"2017-10-30T09:00:49","date_gmt":"2017-10-30T08:00:49","guid":{"rendered":"http:\/\/blog.lodgis.com\/en\/?p=13689"},"modified":"2024-07-16T09:49:56","modified_gmt":"2024-07-16T09:49:56","slug":"pay-income-tax-france","status":"publish","type":"post","link":"https:\/\/blog.lodgis.com\/en\/pay-income-tax-france\/","title":{"rendered":"Expats: How to pay income tax in France"},"content":{"rendered":"

Income tax in France works differently to many different countries and although all the different numbers and paper work may seem daunting, Lodgis is here to help! Read our guide on paying income tax in France<\/strong> to understand the system and work out what you need to be doing come May<\/strong>!
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Who has to pay income tax?<\/h2>\n

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– Permanent residents\u00a0<\/strong>: If your primary residency is in France (regardless of how much time you spend in the country<\/strong>), you are considered a French tax resident. This is also true if you have significant assets in France.<\/p>\n

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– Temporary residents\u00a0<\/strong>: You qualify as a resident if you work in France and if you spend more than 183 days a year in France<\/strong> (these do not have to be consecutive).<\/p>\n

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– Owners of a second home that is rented out\u00a0<\/strong>: If you are a landlord, of an apartment in Paris for example, you have to declare any revenue generated even if your primary residence is not in France. For non-residents the income tax rate is 20\u00a0%. If you sell property in France, the tax rate is 19\u00a0% pour EU citizens and 33\u00a0% for other nationalities.<\/p>\n

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How does income tax work?<\/h2>\n

 
\nUnlike many other countries like the UK and the US, income tax in France IS NOT DEDUCED FROM YOUR MONTHLY SALARY <\/strong> and has to be paid at the end of the year.
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Income tax rates in France depend on your annual net income and are split into brackets:<\/h3>\n

[eltd_highlight background_color=”#E5D593″ color=”#333333″]- Revenue less than 9,710\u20ac net : 0%[\/eltd_highlight]
\n[eltd_highlight background_color=”#E5D593″ color=”#333333″]- Revenue between 9,710\u20ac and 26,818\u20ac net : 14%[\/eltd_highlight]
\n[eltd_highlight background_color=”#E5D593″ color=”#333333″]- Revenue between 26,818\u20ac and 71,898\u20ac net : 30%[\/eltd_highlight]
\n[eltd_highlight background_color=”#E5D593″ color=”#333333″]- Revenue between 71,898\u20ac and 152,260\u20ac net : 41%[\/eltd_highlight]
\n[eltd_highlight background_color=”#E5D593″ color=”#333333″]- Revenue of more than 152,260\u20ac : 45%[\/eltd_highlight]
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\nIf you look at the bottom of your payslip, you\u2019ll see the running total (cumul) of your taxable income to declare at the end of the fiscal year<\/strong>.
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\nFor example, if the net taxable income at the bottom of your payslip is 50,450\u20ac here is how much income tax you’ll pay :<\/p>\n

(26,818- 9,710) x 14% + (50 450 \u2013 26 818) x 30% = 9,484,72 \u20ac
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\nYou pay income taxes in France on your total income and you need to declare your international earnings<\/strong>. For example, if you\u2019re living in France and do freelance work in Australia, you\u2019ll have to declare it.
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Your tax rate can change according to your marital status and how many children you have. <\/h3>\n

You declare your taxable earnings as a household<\/strong>, so have to calculate how many \u201cparts\u201d are in your household and then divide your total income accordingly. If you are married or pacsed, you and your partner count as 2 parts, the first two children count as 0.5 parts and if you have three or more children, they count as a part.<\/p>\n

 
\nFor example: <\/span><\/strong>if your annual net taxable income is 80 000\u20ac, but your wife doesn’t work and you have two children, you’ll be in the same tax bracket as if you were earning 26 666\u20ac (=80 000\u20ac \/ (2 parts+ 2 half parts)), with a tax rate of 14%.
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\nIf you’re unmarried and earn 80,000\u20ac net taxable income, you’ll have to pay a tax rate of 41%. This means that you pay a lot less tax if you’re married or pacsed with children than if you were single.
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When are my taxes due?<\/h2>\n

This depends on whether you file your d\u00e9claration des revenus (tax return) online or by mail<\/strong>. Any tax returns by mail need to be submitted by the 17th May<\/strong>. If you\u2019re doing it online, the time limit is determined by where you live. For departments 1-19 the cut-off is 23rd May, for departments 20-49 the cut-off is the 30th May<\/strong>, for departments 50 and upwards it is the 6th June<\/strong>. The limit for non-residents is the 23rd May<\/strong>.
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\n[eltd_highlight background_color=”#E5D593″ color=”#333333″]Note: If your taxes are late you\u2019ll have to pay a 10% penalty (majoration)![\/eltd_highlight]
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Double tax relief and tax treaties<\/h2>\n

 
\nOver 120 countries have a double tax treaty with France, including the UK and the US<\/strong>. This is to avoid residents of the US and French residents paying taxes twice. If your home country does not have a double tax treaty with France, you can deduct any foreign taxes from your tax return as an expense.
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You have to file a tax return with the IRS every year if you’re an American citizen<\/strong> even if you live overseas.
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According to your situation, you may also have to file an informational return on any assets held in a French bank with a Foreign Bank Account Report (FBAR). However, the US tax system has certain measures in place to help out its overseas citizens, such as:
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