What makes you a french tax resident?
Irrespective of your nationality, whether or not you are a French tax resident relates to Article 4B of the Code Général des Impôts (CGI). This article states that residents of France are those who:
- Have their principal residence in France
- Carry out professional activity in France
- Consider the centre of their economic interests to be in France
In order for France to be considered to be your main residence, you must have your ‘foyer’ (home) there. Your home is seen as your permanent place of residence where you frequently return to. This relates also to where your family resides, since if your spouse and/or children live permanently in France and you return to them habitually, even if you are temporarily working abroad, the French tax authorities will view your household as being in France, and thus that you are tax domiciled there. In the case where it is unclear whether your principal place of residence is in France; this rule also applies for those who spend at least 6 months (183 days) on French soil. Furthermore, if you spend less than 6 months in France but you spend more time in France overall than any other country, you are also considered a French tax resident.
You will also be subject to French tax laws if you are self-employed or a salaried employee in France, unless the nature of your professional activity appears to be ancillary. If you own businesses in multiple countries, then you will only be domiciled in France for tax purposes if it is where you spend the majority of your time.
The French authorities determine the location of your main economic interests by evaluating where you have made your most significant investments, where you derive the majority of your income from, or where you manage your assets. Other factors apply here; but the aforementioned are the principal reasons for being considered a French tax resident due to economic interests.
Please note: it is possible to be considered a tax resident of more than one country, in which case the question of a double taxation treaty arises, through which you can avoid being taxed twice.
Here at Maupard we are able to help you navigate the complexities of the French tax system, please do not hesitate to contact us if you have any questions.
Contact us via our website: https://www.maupard.com/ or by phone: +33 (0)1 53 93 94 20