Living/Working in France - Help!

[Philip B]

Hi! My name is Philip and my wife and I hope to permanently relocate to France in 2008. We are both British Citizens. When we arrive I plan to carry on my UK business. It is Internet based, and so other than using French electricity and broadband I won’t be bothering anyone in France in keeping it up and running. I won't be hiring anybody.

I wonder though –

Would this classify me as a worker in France – self-employed, maybe, and

If I had to be so classified, would the authorities tax me in any way?

I would add that there is no need as far as I can see to register the business in France, as it is a British private limited company, and corporation tax etc is due to the British Gov.

Like I say, the only difference between running it in the UK and in France is.. well I would be in France.

If this question makes sense, and anyone has any views/ideas, I would be grateful to receive them.
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[Rob]

Hi Philip,
I'm in a similar boat but not the same. My businesses are net based, I live in Spain and have an SL (ltd) company there so pay tax social security etc. I also have a Ltd company in the Uk (net based) no employees, office etc but I have to pay taxes as normal in the UK.

I would imagine that as you will be resident in France you'll have to belong to the system there as well as the UK. Can you not set up a French company and transfer the assets of the UK company to the French one? Perhaps like me it's beneficial for you to have a company bank account in the UK which means the company has to exist.

I seem to get differing answers from different accountants.

Perhaps the uk taxman is the one to ask?
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[Philip B]

Thanks for the reply - most kind.

My Accountant seems to think that I can carry on much as now - no French taxes, just British Taxes. However, one (or in your case Juan?) ought to make some additional enquiries, so that when I go I have my story pretty much straight. I don't like surprises, and unexpected tax bills are the least desirable, in my past experience!!

I hope I can generate some additional response before I start to dip my toe in the waters with the Authorities.

Cheers.

Philip
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[Marcus]

Hi Philip,

I'm sure not being a great help in your search...
I think there're two parts widely separated : First one dealing with what is called FISC in French (what is taken by the State), and second dealing with URSSAF (what is taken by social security).

Both have their own way to tax you.
You may find answear directly by their office... May be there's an entry specific for foreigner in English...
Nevertheless godd luck

Regards.
Markus.
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Semper Fidelem

[Philip B]

Thank you for your reply, Marcus. Appreciated.
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Life is what you make it.

[fozzie]

Hi Phil

I've in exactly the same situation although we already live in France.

I have a Ltd company in the UK and my wife still works for a London based company via the internet.

The UK Centre For Non Residence say we have to pay our NI to France. Unfortunately the employers contribution is about 35% where in the UK it is 12.8%.

Just wondered how you were getting on with your move to France and maybe you might have information to help us and vice versa.

Fozzie

[Philip B]

Regret I have no additional information, just collecting it at the moment!!
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Life is what you make it.

[Jenny]

Hi Fozzie and welcome to our forum. Thank you for the information.

[fozzie]

Hi Phil

A quick update or things I've recently found out.

I assume you take a dividend from your UK company. Well there is a French Tax “CSG” that basically allows France to take 11% of your dividends. This is to make up the large Social Deficits France has. The double tax treaty between the UK and France is unfair.

And then…..you still have to pay French NI and other taxes that I’m not familiar with at the mo. And if you think you will pay NI in the UK, the UK Centre for Non Residence will deem you live in France and work from home, so they will not issue an E106 (excludes you from French NI).

http://www.totalfrance.com/france/forum/viewtopic.php?t=19968

The url below compares France to a communist state and although harsh there is a real message in the text.

http://www.dontmovetofrance.org.uk/

This will be food for thought.

Fozzie
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Fozzie

[Philip B]

Thanks for the update. I am in a fog but will gradually pull clear. When/if I have some definitive info I shall post it.
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Life is what you make it.