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What are the taxes in France?

Updated: Nov 19, 2022

Moving abroad is a brave step and it involves many issues that are worth getting acquainted with beforehand. One of the topics that concerns every person moving to another country is the tax system currently in force in a given country. Let's take a look at what it looks like in France.




Income tax


The main tax paid by all adults residing in France is the Impôt sur le Revenu income tax, regardless of their country of origin. The source of income can be, for example: salary, dividends, pension, income from real estate, investments. However, it is worth remembering to stay up to date with tax regulations, because they change quite quickly, e.g. one of the latest changes is a duty to report income from renting a property on AirBnB.


Tax rates in France


France has a progressive income tax system, i.e. it increases with the increase in earnings. The tax rates in France (applicable until 2021) are as follows:

​To 10 225 €

0%

From 10 226 € to 26 070 €

11%

From 26 071 € to 74 545 €

30 %

From 74 546 € to 160 336 €

41%

Over 160 336 €

45%


As you can see, there is a high tax-free allowance in France. For this reason, many seasonal workers do not have to account for this type of work, because often the rate does not exceed the above-mentioned threshold.


Tax reliefs in France


The French tax system also provides for various reliefs that affect the amount of the annual settlement. These are reliefs regarding, for example:

  • children's education

  • employment care for children or the elderly

  • living expenses for family members (e.g. people with disabilities)

  • donations to charity

  • expenses for the purchase of ecological heating installations

Tax Residenc


As for the so-called tax residents, taxes in France must be paid by persons who meet the following requirements:

  • their place of residence or main residence (more than 6 months of the year) is in France;

  • their main professional activity is carried out in France;

  • their center of economic interest is in France – this means that the person makes major investments, has its registered office or manages real estate in that country.

Tax refund in France


Every household or individual who is of legal age and has worked in France under certain conditions must file a tax return, a Déclaration des Revenus, which covers all income (including benefits such as unemployment benefits).


What are the other types of taxes in France?

  • tax on goods and services (VAT);

  • housing tax (owner and tenant);

  • property tax (property owners);

  • wealth tax


When should tax declqarations be filed?


The French tax year is as follows:

2nd quarter (end of May or beginning of June, depending on the department in which you live) - submitting a tax declaration

3rd quarter (end of July or beginning of August) – receipt of an income tax notice (and the deadline for payment of real estate tax in September)

4th quarter – in October you must pay the real estate tax (taxe foncière) and in November the housing tax (taxe de residence)


Feel free to contact us for personalized advice. We approach each situation individually and offer assistance, e.g. regarding the annual tax declaration.

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