Taxation in France

French income taxes ( impôts sur le revenu ) are payable in the following situations:

·         You are in France to live here permanently

·         You have a residence permit

·         You spend more than 183 days in the country during a calendar year

·         You hold most of your wealth in France

·         Your main professional activity is in France

Income taxes are calculated yearly from January 1 to December 31. You will be required to declare all your earnings from arrival if you are then in permanent residence.

Your tax is calculated using the information you supply in 'la déclaration des revenus'.  Alternatively, you may receive the new form 'la déclaration des revenus pré-remplie' -  a declaration pre-filled in by the tax office on your behalf based on information supplied by your employer. After your first year, you should get the form sent directly to your home by the tax office, centre des impôts. 

See the French government website for more information - www.impots.gouv.fr

The basic idea is that all possible deductions are made from the sum total of your income including wages, pensions, interest income, and rents - your Revenu à déclarer, and the remainder - your revenu imposable - is the basis for your tax payment due.  Payment can be made in advance or monthly, or in three installments spread through the year.

The tax bands for 2006 taxable income are:

·         EUR 0 to 5,614                          0 percent

·         EUR 5,615 to 11,198                  5,5 percent

·         EUR 11,199 to 24,872                14 percent

·         EUR 24,873 to 66,679                30 percent

·         More than EUR 66,679               40 percent

And a maximum tax burden of 60 % has been set.

Property taxes:

Whether you are resident in France or own a holiday home here, whether or not you declare an income, you will have to pay the following taxes:

·         Taxe d'habitation/redevance audiovisuelle: The tax for living here, payable whether you rent or own, based on where you live as at January 1st each year. Statements are sent out around September for December payment.

·         Taxe foncière: The tax for owning the property - sent out around September. 

Taxes, as everywhere, depend on your personal circumstances, so consult a tax specialist for advice.