Social Tax

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Richard D
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Post by Richard D »

Yes there are a lot of benefits to being French resident. I was resident for 6 years and the amount of tax social charges (including Healthcare and Pension) on rental income seem broadly similar now between residents and non-residents, so its maybe a good time to think about changing residency while you still can ! I know which country I'd prefer to be living in if I were retired. IMHO the healthcare in France is way better than that in the UK.
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Moliere
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Post by Moliere »

Richard D wrote:Yes there are a lot of benefits to being French resident. I was resident for 6 years and the amount of tax social charges (including Healthcare and Pension) on rental income seem broadly similar now between residents and non-residents, so its maybe a good time to think about changing residency while you still can ! I know which country I'd prefer to be living in if I were retired. IMHO the healthcare in France is way better than that in the UK.
Indeed; the only drawback is getting your 5 years' residency in the bag (for permanent status) before the balloon goes up. We should make it. :lol:

Mols
Jumping is just dressage with speed-bumps.
lindyloo
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Post by lindyloo »

So if i were looking to rent out my holiday home in france a 12,000 income from it would incure 39% tax
regards Lindyloo
katiebythesea
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Post by katiebythesea »

Hi
I have had this link sent to me about this petition to sign against the social tax -

https://www.change.org/p/non-au-paiemen ... dium=email

Is this the same one being discussed here or a different one?

There are more taxes to pay in France and if this is an additional one it seems like too much!
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bornintheuk
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Post by bornintheuk »

lindyloo wrote:So if i were looking to rent out my holiday home in france a 12,000 income from it would incure 39% tax
regards Lindyloo
Your CSG payments would only be applied to your revenue after deductions of 71% if registered. Therefore only on 3480.
What would Plato do ?
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French Cricket
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Post by French Cricket »

Or to be absolutely accurate - if classified (by the tourist office or whoever does it in your area). Only accommodation that has been classified is now eligible for the abattement of 71% - otherwise it's 50%.
lindyloo
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Post by lindyloo »

Ok thats clearer , so it might just be worth the effort ,does it change the rules if your not resident
regards Lindyloo
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bornintheuk
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Post by bornintheuk »

lindyloo wrote:Ok thats clearer , so it might just be worth the effort ,does it change the rules if your not resident
regards Lindyloo
I dont think so , no
What would Plato do ?
vacancesthezan
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Post by vacancesthezan »

Moliere wrote:Yes, here it's come. Social charge - an extra 15.5% levy on top of income tax. I'll talk to my accountant, but it looks like the b***ers have nailed us, despite the UK Govt paying France for our healthcare.

Talk about riding roughshod over the rules!

Mols
Is this the 15.5% which is likely to rise to 45% if the government get their way? Lots of "noise" on the French equivalent of LMH at the moment but cant get the full details. We have asked our French accountant but not had a response as yet!

VT
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Moliere
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Post by Moliere »

vacancesthezan wrote: Is this the 15.5% which is likely to rise to 45% if the government get their way? Lots of "noise" on the French equivalent of LMH at the moment but cant get the full details. We have asked our French accountant but not had a response as yet! VT
I sincerely hope not! Maybe that 45% is in fact what we are being asked to pay now - 15.5% social charge plus 30% tax (on income over €26,792). I can't imagine even Hollande thinking he can raise this to 75.5%, if that's so it'll do wonders for Assurance Vie sales.

Mols
Jumping is just dressage with speed-bumps.
vacancesthezan
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Post by vacancesthezan »

Moliere wrote:
vacancesthezan wrote: Is this the 15.5% which is likely to rise to 45% if the government get their way? Lots of "noise" on the French equivalent of LMH at the moment but cant get the full details. We have asked our French accountant but not had a response as yet! VT
I sincerely hope not! Maybe that 45% is in fact what we are being asked to pay now - 15.5% social charge plus 30% tax (on income over €26,792). I can't imagine even Hollande thinking he can raise this to 75.5%, if that's so it'll do wonders for Assurance Vie sales.

Mols
Definitely just the cotisations. Below is the quote from the email we have received asking us to sign the petition against it!

En cette période pré-électorale, les médias se font l'écho de divers «cadeaux» qui prennent la forme de réductions d'impôts, de subventions ou de commandes publiques.

A contre-courant, une mesure défavorable figure dans le projet de loi de financement de la sécurité sociale qui vient d'être adopté par le Gouvernement le 5 octobre dernier en visant directement les loueurs de meublés de tourisme.

Selon l'article 10 de ce projet de loi, il est proposé au Parlement d'adopter une disposition législative qui a pour effet de soumettre une partie des loueurs de meublés de tourisme au paiement de cotisations pleines et entières comme s'il s'agissait de commerçants.

Autrement dit, au lieu d'acquitter les seules contributions sociales au taux de 15,5 %, les loueurs visés devront acquitter des cotisations sociales au taux de 45 %.


What is not clear is whether this will apply to all "meubles de tourisme" or just those based in France.

Mr VT has reached retirement age so we were thinking of reducing the work load and going "non prof" but not really any point if we are going to pay as much each way particularly with the uncertainty of Brexit as well.

VT
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Moliere
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Post by Moliere »

Ooh, I feel your pain. These days since I retired, my problem is charges on investment income (I know, nice problem to have) not holiday rentals.
I would definitely press your accountant, if he's not forthcoming, I can pass you the one I used to use in Beziers - he's not cheap, but he's very effective. PM me if you want details.

Mols
Jumping is just dressage with speed-bumps.
la vache!
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Post by la vache! »

Regarding the changes proposed in the Social Security law in Katie's link (obligation for rental owners to join the RSI, reduction in threshold to be considered professional from 23,000€ to 15,000€, there is some good news.
Rental owners will not be obliged to pay RSI contributions, the threshold will also remain at 23k euros to be considered non professional, and the current 71% abattement for meublés de tourisme will increase to 87%.
http://www.lafranceagricole.fr/actualit ... 14236.html
nijntje
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Post by nijntje »

French Cricket wrote:Or to be absolutely accurate - if classified (by the tourist office or whoever does it in your area). Only accommodation that has been classified is now eligible for the abattement of 71% - otherwise it's 50%.
so how is it that I am not classified and I always get the 71% abbatement? Maybe because I am a professional renter as an autoentrepreneur and it is my only income? Anyway, I pay my social taxes (around 14%) on my turnover and dont pay any income tax due to being a family of 2,5 parts and 71% abbatement. Even when I make 50K I dont pay income tax :)
Hells Bells
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Post by Hells Bells »

My apartment is not classified. I completed the form along with the one to become registered as Meublé de Tourisme and returned them to the Mairie as requested. I received the Meublé de Tourisme certificate but heard nothing about the Classement.
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