Issue No. 18

Plan ahead to
avoid a
possibly
taxing time
in France
For those contemplating the purchase of a
second home in France, or a complete
move, the advantages from a tax
perspective may represent fantastic value.
Jennie Poate, Head of Operations, France
for Beacon Global Wealth Management
explains…
There always seem to be horror stories
doing the rounds about tax in France. But if
you're planning to move here as a retiree or
early retiree and already have some (or all)
of your income stream planned, then you
could well be surprised.
For example: if you're married, you are
taxed as a household and will have two taxfree
allowances added together before
income tax becomes payable. This is
certainly handy if, like most people, one of
you has a higher income than the other. All
pensions receive an abatement or
allowance of 10% before tax is payable –
every little helps.
As an individual in the UK you would pay
40% tax above the £43,300 threshold.
Even as an individual in France you wono't
reach this height until above €70,000. So
even higher earners can pay less tax.
The rates for income tax are:
Income
Tax Rate
Up to €9,807 0%
Between €9,807 - €27,086 14%
Between €27,086 - €72,617 30%
Between €72,617 - €153,783 41%
Above €153,783 45%
As an example, suppose two adults have a
joint income of €40,000. Tax liability is
worked out on the basis that each has
€20,000. The first €9807 of each person is
zero rated, tax is charged at 14% on the
remainder.
There are also exemptions, discounts and
reductions available – it can seem like a
highly complex formula when you’re trying to
fill in the paperwork and work out what’s
what. Getting qualified tax advice can save
you money, time and heartache (not to
mention a headache).
Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI). All
approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licensed and
regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number
FSC00805B. The information in this article is intended as an introduction only and is not designed to offer
solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses
incurred by acting on this information.