Reader query: We’ve got a home in France. If we swap our Withdrawal Settlement cartes de séjour for visas de lengthy séjour, will that imply we will keep away from making a French earnings declaration?
A carte de séjour is for an individual with the correct to ongoing residency in France and means you might have made your major residence right here earlier than making use of, whereas a visa de long-séjour is utilized for by non-EU nationals shifting to France and/or who need to come for lengthy stays, usually as much as six months at a time. Within the latter case this can be a visa de lengthy séjour temporaire (VLST).
You’re involved about whether or not having a Withdrawal Settlement (WA) residency card means you might be eligible to declare earnings to France for tax.
Firstly, it’s best to keep in mind that even when you have a proper to stay in France (on this case by way of a carte de séjour) it doesn’t robotically imply that additionally, you will must file a tax return within the nation.
The need to fill out a tax return is predicated on whether or not you’re a tax resident in France, which is topic to particular guidelines.
Crucial factor to level out right here is that submitting a French tax return just isn’t a alternative – should you fall underneath the necessities to file one, you should achieve this.
To be classed a resident of France for tax functions (résident fiscal de France) there are 4 major checks that are checked out:
Is your major residence in France?
If a ‘major residence’ can’t be recognized, then the foundations contemplate whether or not you reside habitually in France and spend extra time there than wherever else
Whether or not your centre of ‘financial pursuits’ is in France (for instance, should you earn more money in France than elsewhere)
Do you run a enterprise in France?
As you might have a carte de séjour particularly for British residents dwelling in France earlier than Brexit – that was designed to assist them retain residency rights they beforehand held attributable to being EU residents – it’s doable the tax authorities might contemplate your main residence to be in France.
Nevertheless, this isn’t essentially the case and now we have no particular proof that tax workplaces are chasing up holders of those playing cards.
If then again you’re a resident in France for tax functions, this implies all of your worldwide earnings must be declared to France, even when it comes from the UK.
This doesn’t imply you may be double taxed in your earnings. The UK-France double tax treaty accommodates guidelines clarifying how this works (The Connexion additionally has an annual information to earnings tax in France).
Observe that having to finish a tax return in France doesn’t essentially imply you may be taxed, simply that you should declare your earnings to the state.
Learn extra: Do UK or French inheritances should be declared on French tax return?
Why some WA card holders will not be French tax residents
When you have a five-year Brexit Withdrawal Settlement Card (the cardboard given to these not dwelling in France for 5 years earlier than Brexit got here into drive), this grants you the correct to stay in France in the course of the cardboard’s validity.
As a basic rule it’s pointless to ‘resign’ a card you might have been awarded, although we word that in accordance with the Brexit WA, holders of this residency allow who need to finally improve to the everlasting residency card (which truly lasts for ten years however might be simply renewed) mustn’t depart France for greater than six months of the 12 months other than if there are ‘essential causes’ for doing so. These embody absences of as much as 12 months for being pregnant and childbirth, critical sickness, research or vocational coaching or a posting overseas.
Having mentioned that, from data acquired from the French Inside Ministry, paperwork for renewal for a everlasting card in France are minimal. It will not, nonetheless, be applicable to take action when you have moved again to the UK.
‘Everlasting keep’ playing cards are issued for 10 years and holders keep their French residency rights so long as they aren’t away from France for greater than 5 years. Because of this, it’s fairly doable for some holders to at present be UK tax residents, for instance if they’ve moved again to the UK since receiving the cardboard.
You could possibly at all times hold your present allow till it expires after which not renew it – after this, if you’re dwelling within the UK at this stage it is possible for you to to use for visas to go to your second residence for intervals of greater than three months at a time.
As talked about above, there are visas that second-home house owners can apply for that enable holders to spend as much as six months at a time in France (very sometimes as much as one 12 months).
After this, they need to depart and a future visa interval can’t begin earlier than six months after expiry of the earlier one. In any other case, it’s doable for Britons to go to France for as much as 90 days in any 180-day interval, visa-free.
Learn extra: Explainer: Widespread visa choices for visiting and shifting to France
Property tax type concerns
You also needs to concentrate on the brand new necessary on-line property type – biens immobiliers – that every one house owners of French houses are required to fill in by July 31.The declaration asks you whether or not your property is a major or secondary residence. In the event you state the French residence to be your major residence, then this could usually be a sign of you additionally being a French tax resident. If, then again, you state it to be a second residence as a result of your major residence is within the UK, the alternative would often apply.
Associated articles
Why has the necessary property tax type deadline been prolonged?