10 June 2022 8:33

Dual citizen (US/French) always lived in France and extraterritorial taxes

Do French citizens need to pay taxes when living abroad?

If your residence for tax purposes remains in France, you are liable to tax in France on all your income, including the remuneration for your work abroad. You are therefore required to file your income tax return with the tax assessment service that covers your usual residence.

Can you be resident in France but not tax resident?

People in France who are not tax residents are only taxed on income from French sources. Remuneration paid in return for work carried out on French soil is therefore taxable in France. Unless otherwise provided for by a tax treaty, salaries paid to non-residents are subject to tax deducted at source.

Do you live in France for tax purposes?

You will be resident in France if you live in France for at least six months of the year. This rule does not require that you live in a permanent home you have in France, but that you are merely on French soil for six months of the year.

Is US income taxable in France?

Paying Taxes in France on US Income



Worldwide income will be taxed in France if you are considered a French resident.

Do us retirees pay taxes in France?

If you’re a U.S. citizen with a U.S. retirement account (no matter where you live) that money is only taxable in the U.S.



2021 (2020 Tax Year) French Tax Rates for Americans who Are Non-Residents.

Earnings in Euro (EUR) Rate Applicable to Income Level (%)
€14,988 – €43,477 12%
Above €43,477 20%

Do you have to pay taxes with dual citizenship?

Yes, if you are a citizen or resident alien of the United States, you have a U.S. tax obligation, even if you’re a dual citizen of the U.S. and Canada. The U.S. is one of two countries in the world that taxes based on citizenship, not place of residency.

Can you be a tax resident in two countries?

It is possible to be resident for tax purposes in more than one country at the same time. This is known as dual residence.

Who is considered a tax resident of France?

The criterion of 6 months (183 days) minimum presence in France is often misused. Under French law, you are tax domiciled in France if your household is in France. According to the French tax authorities, an individual’s home is his or her habitual and permanent place of residence.

How can I avoid paying taxes in France?

27 TAX REDUCTIONS IN FRANCE THAT COULD REDUCE YOUR INCOME TAX BILL

  1. Donations and grants to a charitable organisation.
  2. The cost of employing help in the home.
  3. The purchase of shares in small and medium enterprises.
  4. Subscription to mutual fund units for innovation (Fonds Commun de Placement dans l’Innovation – FCPI)

Is US Social Security taxable in France?

If U.S. Social Security covers your work, you and your employer (if you are an employee) must pay U.S. Social Security taxes. If the French system covers your work, you and your employer (if you are an employee) must comply with the French contribution requirements.

How much can you earn in France without paying tax?

For 2022 (2021 income) if you are nominally liable to pay tax of less than €1,746 (single person) or €2,889 (couple), a reduction in income tax is granted to you on a formula basis that lowers the actual amount you would be required to pay.

Are taxes higher in the US or France?

United States has a top tax rate of 39.6% as of 2016. In France, the top tax rate is 50.2% as of 2016.

Can a US citizen live in France?

Most Americans who want to move to France will require a work visa. If you are employed, your work contract will need to be approved by the French Labor Ministry and the French Office of Immigration and Integration.

Is it easy for Americans to retire in France?

France is a very good place to retire. France finished in the top 10 of our 2020 Annual Global Retirement Index. The reasons for France being such a good place to retire include a low cost of living and the excellent healthcare on offer.

How much does the average French citizen pay in taxes?

Income tax

Income per Unit Rate
Below €9,700 0%
From €9,711 to €26,818 14%
From €26,818 to €71,898 30%
From €71,898 to €152,260 41%

Who were exempted from taxes in France?

The tax system in pre-revolutionary France largely exempted the nobles and the clergy from taxes. The tax burden therefore devolved to the peasants, wage-earners, and the professional and business classes, also known as the Third Estate.

Is healthcare free in France?

You must have health insurance cover to live in France. State healthcare in France is not free. Healthcare costs are covered by both the state and through patient contributions. These are known as co-payments.