French Tax Planning for Expats

Expat tax advice in France

The international tax service at Forth Capital provides high quality cross-border and French tax advice for individuals moving to France, already living in France or purchasing French property.

Our tax advisers are qualified Chartered Tax Advisers and members of the Chartered Institute of Taxation, who have specific expertise in French tax advice, with over 15 years of experience advising expatriates.

With our specialist knowledge of both the UK and French systems, and how they interact, we can highlight opportunities to reduce your taxes whilst also ensuring you avoid the pitfalls.

Our Areas of Expertise for French Tax Advice

Residence Planning – you cannot choose where you pay your taxes, this will depend on where you are resident and where your income and gains arise.  We can however guide you through the minefield that is the UK’s Statutory Residence Test and advise on French residency rules and how both countries’ rules apply to your particular situation.  We may also need to consider the UK/France Treaty to determine where you are resident and also on the optimum time to leave or return to the UK, and your tax filing obligations in the UK and France.

French Wealth Tax – many UK expats do not like the idea of paying wealth tax and consider it to be an unfair tax.  However, due to the various reliefs and allowances available, many are surprised to find out that their actual liabilities are relatively low, or they may be exempt from wealth tax altogether.  Where significant liabilities do arise, we can advise you of the opportunities to reduce the cost.

Capital Gains Tax Planning – French Capital Gains Tax rules have been constantly changing over the last few years and as a result, the rules are now more complex.  Different regimes apply depending on whether you are selling real estate, investments or other assets.   If you are moving to France, we will look at the optimum time to sell assets to mitigate your UK and French liabilities, including advice on the reliefs and deductions available.  From 6 April 2015, the UK is introducing Capital Gains Tax on the sale of UK residential property by non-UK residents.  Seek advice if you will be affected by these new rules.

Income Tax Planning – we can advise on tax planning for all forms of income, including rental income, salary dividends, investment income, share options and more.

French Succession Law – France’s succession laws dictate how a certain portion of your assets is distributed on your death.  Children are ‘reserved heirs’ and have an automatic entitlement to up to 75% of your assets.  We can advise you on ways to minimise the impact of these laws, including investment and property ownership structures. In addition, when the European Succession Regulation comes into effect on 17^th August 2015, individuals will be able to elect for the laws of their country of nationality to apply to their estate on death.  This will be of major benefit to many expats living in France who are wanting to avoid French succession laws.  We can advise you on the impact of these Regulations to your own particular circumstances and how to make an election.

French Succession Tax – this is an inheritance tax, but it operates in an entirely different way to UK inheritance tax.  The tax is payable by the beneficiary and is dependent on the amount of inheritance that beneficiary receives and their degree of kinship with the deceased.  Taxes are lower for close family members.  Unmarried partners can suffer tax of 60% on any assets passing between them.  It is crucial to take advice on minimising succession tax, particularly if there are children from previous relationships or your intended beneficiaries are more distant relatives.

UK Inheritance Tax – although you may be planning a move to France, you may still be liable to UK inheritance tax.  France is one of the few jurisdictions that has a treaty with the UK covering inheritance taxes.  We can advise you on the benefits of the Treaty in your particular circumstances.

Pension Planning – the UK’s pension rules have been evolving rapidly over the past few years.  We can help you understand how your UK pension will be taxed in France, and the options available to you, including advice on the French tax treatment of QROPS.

Tax Efficient Investments – investments that are tax efficient in the UK may not be tax efficient in France.  We can provide UK and French Tax Advice on the options available as a resident of France and how restructuring can help to reduce both UK and French taxes.

What happens next?

Click here or on the green speech bubble icon to the right of the screen and fill in the online form, a member of our team will then contact you to discuss your situation.