Dear Blanca,
I’m writing to you with a unique problem: I’m stranded in a strange Paris predicament! After visiting this beautiful city and being charmed by the sights and sounds, I’m now starting to give some thought to the legalities of staying in France. So, with bated breath and rising stress, I beseech you, What tax obligations do I need to be aware of in France?
Yours Truly,
Helen Halloway, Helsinki
Dear Helen,
As someone who has lived in France on and off for over two decades, I understand the difficulties of staying legally in France. In dealing with such predicaments, it’s important to keep track of tax obligations. So, lucky for you, I am happy to share with you that you need to be aware of three primary taxes in France including:
•Income Taxes:
All income gained from wages, salaries, investment gains, etc. are all subject to taxation in France. These taxes correspond with marginal tax rates of 0-45%, which are then correlated with different marginal tax brackets, depending on the amount. For example, income up to €9,822 incurs a levy of 0%, €9,822-€26,818 incurs a levy of 14%, and €26,818-€71,786 is subject to 30% taxation.
•Social Security Taxes:
These are taken out of wages and salaries and are then used to fund social and welfare programs such as those related to unemployment insurance, healthcare, and elderly care.
•Value Added Tax (VAT):
Those living in France are also responsible for paying Value Added Tax (VAT) on any goods and services purchased.
Overall, understanding these tax obligations will enable me to remain compliant with the French tax code and ensure that I’m following the law. Wishing you the best luck in your stay in Paris and a safe and fulfilling journey home!
Yours Truly,
Blanca Valbuena.