Working abroad while residing in France is an increasingly common situation, particularly with the rise of remote working. However, it raises questions about the resulting tax obligations. In this article, we will explain how to manage your taxes and tax obligations if you reside in France but work abroad.
Resident or Non-Resident Tax Status in France
The first step in understanding your tax obligations is to determine your tax status in France.
If your family (minor children, wife/husband, PACS partner) is in France, or if you derive the majority of your income from France, or if the majority of your assets are in France, or if you reside in France for more than 183 days in a calendar year, you are in principle considered a tax resident of France.
You must therefore pay tax on all of your French and foreign income.
If you do not meet these conditions, and are therefore not considered a tax resident of France, you pay tax only on your French-source income. The income you receive abroad will therefore not have to be declared in France.
International Tax Treaties
If you work abroad while residing in France, you may be subject to double taxation, that is, paying tax in two different countries on the same income.
However, France has signed tax treaties with certain countries to avoid such double taxation. These treaties make it possible to determine which country has the right to levy tax on a specific item of income.
They take into account several criteria, such as the place of residence, the place where the professional activity is carried out and the length of time worked.
It is important to find out about the tax treaties between France and the country in which you work in order to know how to declare your income.
Administrative Formalities
In France, you must declare your income every year, even if you do not pay any tax in France.
If you work in a country that has not signed a tax treaty with France, you must also pay tax in France on the income received abroad.
To declare in France the income you received abroad, you will need to complete form 2047 and/or the 2042 C return, depending on the situation.
Remember to contact a tax lawyer to obtain further information based on your specific situation.
Working abroad while residing in France can be a complex situation because of the tax and administrative issues it raises. It is therefore important to be well informed and to comply with legal obligations in order to avoid any risk of penalties.
Each country has its own tax regulations. It is therefore important to be properly assisted by a tax lawyer to learn everything about the returns to be filed, the taxes to be paid and the exemptions that may be available.
