How to Register as a New French Resident
You have recently decided to definitely settle in France and you want to become a resident. Know that a French resident is not necessarily someone whose nationality is French. A French resident is someone whose purpose is to work in France and/or stay permanently on French territory. Officially, three main conditions are required by the French administration:
– You carry on a professional activity in France, either self-employed or as an employee
– Your main home shall not be away from France
– Your centre of “economic and financial interests” must be in France. This includes such interests as business, investments, shares, etc.
You are considered a non-resident when you, usually, do not earn income in France. Sometimes, you can earn money in France and be a non-resident. In this case, your liability to taxation will depend on the terms of any double taxation treaty between France and your home country. Regarding France and the UK, any income related to property is subject to French social contributions. But generally, under the terms of most double taxation treaties, rental income is liable to taxation in the country where it is earned.
Since 2011, new legislation enables you the opportunity of registering your residency status through your income tax return, as you have to pay them in France as a new resident. Currently, this is the only way of becoming ‘tax domiciled.’ With this new legislation (for those who moved to France in 2011) you should be able to fill your income tax declaration since May 2012.
Like any other country in the European Union, while you are ‘tax domiciled’ in a country, you need to declare your worldly revenue, even when you have paid taxes where you earned your revenue. However, a tax agreement exists between the France and UK which gives you the right to receive tax allowances. The good news for you is that you may not be subject to the whole income tax, even if you are obliged to declare all your revenue in France. Although any income earned in France is taxed in France, wages coming from foreign countries are taxed–in addition to public authority pensions. As regards any income related to property, it is subject to French social contributions since the modified double tax treaty with the UK is in operation, despite the property being located in the UK.
File the return
If it is the first time you have to file a return, remember that you are responsible for obtaining the declaration forms yourself. You can get them either from your local tax office or online. For UK residents, you will have to complete a minimum of two forms.
If you have been resident in France for a few years but have not completed an income tax return yet, keep in mind that you are obliged to file a return. Take this into consideration as you still have nothing to prove, because you are a ‘non-official’ resident in France.
*These are not the same social charges being part of the French healthcare system.