Tax Obligations and Benefits

Understanding French taxes prevents problems and maximizes benefits:

Automatic if: - Spend 183+ days in France - Main home in France - Family lives in France - Work primarily in France

Implications: - Worldwide income taxed - Tax treaty benefits - Access to tax credits - Social charge obligations

How It Works - Progressive rates (0-45%) - Household taxation (quotient familial) - Year following income - Now withheld at source

First Year - No withholding if just arrived - Pay following year - Set aside 20-30% to be safe - Possible installments

Key Deadlines - May: Declaration deadline - September: First installment - December: Balance due

Housing Tax (Taxe d'Habitation) - Being phased out - Still applies to second homes - Based on January 1 occupancy - Includes TV license

Property Tax (Taxe Foncière) - For property owners only - Based on theoretical rental value - Due in October - Can be substantial

Wealth Tax (IFI) - On real estate over €1.3 million - Worldwide property counted - Complex calculations - Professional advice recommended

Foreign Tax Credits - Avoid double taxation - Treaty benefits - Proper forms crucial - Country-specific rules

Deductions Available - Childcare costs - Home help - Charitable donations - Pension contributions - Energy improvements