Ask the experts…Am I a

Ask the experts…Am I a tax residentin France?these questions clearly; a few with equalinterests in two countries fall in the ‘vague’category.If you are a resident of France, you are alsodomiciled in France, since the double taxtreaty between Britain and France agreeson this. More importantly, you are now dutyboundto complete a French tax return,declaring your worldwide income. It does notmatter where it is paid, where it is maintained,whether it is considered “exempt” in Franceor not, or whether you pay tax at source in theUK or not. You must declare everything.Even if you have no income at all, you muststill complete a tax return in France.It is unlikely you will be sent a tax returnin the first instance. The law says it is yourresponsibility to obtain one. You can organisea tax return at your local town hall, tax officeor online at www.impots.gouv.frKentingtons provides tax, investment andfinancial advice to private individuals who aremoving from the UK to France and to thosealready living in France (though our service isopen to all nationalities).Contact the team at Kentingtons for advice,or a free initial consultation at:kentingtons.comThe question of French tax residencyrules affects everyone who has ahome in France. We ask Robert Kentof Kentingtons, the professional taxadvisors for British expats in France, toexplain the rules…I will start by saying French residency rulesare a matter of legislation, not a matter ofchoice. I am often asked, “Where is it best topay taxes – France or the UK?” It’s a simpleanswer – there is no choice. It just depends onwhere you fall within the rules.Many people bury their heads in the sandwhen it comes to defining their residence inFrance. It’s so easy just to stick with whatyou know and avoid what is foreign. Manypeople who attempt to determine their statustry to define their residency in France usingthe same rules as those used in the UnitedKingdom, e.g., UK law. But that simplydoesn’t work.The main laws defining residency in France donot even mention the number of days spentin the country. So, it’s time to throw out theUK rule book – we’re in France! Many peoplethink that the rules on residency are vague.And yes, this can sometimes seem to bethe case. However, very few people fall intothe vague category. For most people, theirresidency position is very clear and clarifiedby French tax residency rules using a seriesof tests which include your habitual abode,where your professional activity is based, andyour centre of economic ‘vital’ interest. Thevast majority of expats in France can answer130 | The Good Life France The Good Life France | 131