UK tax or French tax system?

sgilmour

I am a British sole trader currently based in the UK and operating as a freelance translator. Within the next 3 or 4 months I plan to move permanently out to the Bordeaux region (where I have recently bought a flat) and would really appreciate some tax advice.

Am I correct in assuming that since I will be a full-time resident in France, I will be required to pay French taxes and charges sociales (the thought of which, quite frankly, scares the living daylights out of me!!), or can I get around this issue by registering an LLC, Ltd or similar Company in the UK and operate from France as a UK employee drawing a monthly UK salary?

Am I also right in thinking that I would be looking at handing over a total of nearly 50% of my income to the French taxman and state (tax + charges)?

Any advice on this matter would be very much appreciated.

Thank you in advance,

Scott

Cook_County

The EU has no harmonisation of tax. If you want the system changed you have the democratic right to vote - either at the ballot box or with your feet.

If you want a French lifestyle and benefits (which in healthcare for example are better then the UK) then you need to pay French tax. If you want lower tax and this is the only thing motivating you then the new EU accession states in the East all have low flat taxes. You may even do well in your business...

telly-addict

sgilmour wrote:

I am a British sole trader currently based in the UK and operating as a freelance translator. Within the next 3 or 4 months I plan to move permanently out to the Bordeaux region (where I have recently bought a flat) and would really appreciate some tax advice.

Am I correct in assuming that since I will be a full-time resident in France, I will be required to pay French taxes and charges sociales (the thought of which, quite frankly, scares the living daylights out of me!!), or can I get around this issue by registering an LLC, Ltd or similar Company in the UK and operate from France as a UK employee drawing a monthly UK salary?

Am I also right in thinking that I would be looking at handing over a total of nearly 50% of my income to the French taxman and state (tax + charges)?

Any advice on this matter would be very much appreciated.
Thank you in advance,

Scott

Many of the large (big 4) and middle sized accountancy firms have international networks of associated firms that can give you just the advice you need. Try someone like BDO Stoy Hayward, Clark Whitehill, Pannell Kerr Forster as they are big enough to know what they are doing but not as expensive as Deloitte, PWC etc.

I would ask for a free consultation meeting so you can set out the information you need and then they can give you a quote as to the cost of the report. They will need to liaise with one of their French offices to make sure what they tell you is accurate.

The rules determining residence for tax purposes vary all around the world, but it is likely that if you are in France permanently you will be liable for French tax primarily. You will still be liable for UK tax on any UK income arising, but you will still have a personal allowance available to set against it.

If you have to pay French and UK tax on the same income, the tax rules usually give you credit for one or the other to reduce the burden.

Watch out for French inheritance rules. They have the 'forced heirship' rules which means (very simplistically) that property is passed down to family in a certain pattern, rather than just to who you want. Also, a property tax is levied.

If you are a translator then your better bet may be to go to the Bordeaux office of the network firms I mentioned above. Try BDO ( I used to work for them!)
http://www.bdoglobal.com/

You will get the information straight from the horse's mouth, in French and it will cut out the middle man. A visit to a UK accountant would still be worthwhile to give you advice regarding non-residency from the UK.

There are some good books out there to assist with all financial and other matters (e.g. healthcare, wills, insurance) relevant to moving to a different country - quite often the Big 4 firms have them - they may be able to send you one if you try their marketing departments.

Hope this has provided some practical advice!