UK Tax and France: What Expats and Property Owners Need to Know

Understanding UK Tax Obligations for Residents in France

For UK citizens living in France, taxation depends on residency status. France and the UK have a double taxation treaty to prevent individuals from being taxed twice on the same income.

Who is Considered a Tax Resident in France?

You are considered a French tax resident if you:

• Spend more than 183 days per year in France
• Have your primary home (foyer fiscal) in France
• Carry out your main professional activity in France
• Have France as the center of your economic interests

If you meet any of these conditions, you must declare worldwide income in France.

How is UK Income Taxed in France?

1. UK Pensions and Social Security

• UK state pensions are taxable in France and must be declared.
• Private and occupational pensions are also taxed in France but benefit from a UK-France treaty exemption to avoid double taxation.
• UK pension lump sums may be subject to French income tax at progressive rates.

2. UK Rental Income

• UK rental income is taxed in the UK but must also be declared in France.
• France provides a tax credit equal to the UK tax paid to prevent double taxation.
• UK property owners may be subject to Capital Gains Tax (CGT) in both the UK and France when selling UK property.

3. UK Employment Income

• If working remotely for a UK employer while living in France, French tax law generally applies.
• UK salaries are taxable in France unless work is physically performed in the UK.
• UK National Insurance contributions may still apply depending on specific work agreements.

French Taxes on UK Property Owners

If you own property in France while residing in the UK, you may be liable for:

• French rental income tax (if letting the property)
• French wealth tax (IFI) for real estate assets above €1.3 million
• Capital gains tax when selling French property

How to Avoid Double Taxation

To prevent being taxed twice on the same income:

• Claim Foreign Tax Credits: France provides credits for taxes paid in the UK.
• Utilize the UK-France Double Tax Treaty: Certain types of income are taxed only in one country.
• Consider Tax-Efficient Structures: French tax incentives, like the tenant guarantee, can help manage rental income effectively.

FAQ : UK Tax and France

Do I need to file a UK tax return if I live in France?

If you earn UK-based income (pensions, rental income), you may still need to file a UK tax return.

Is UK rental income taxed twice?

No, UK rental income is taxed in the UK, and France provides a tax credit for UK tax paid.

How does Cautioneo help UK property owners in France?

Cautioneo’s unpaid rent insurance ensures stable rental income, reducing financial risks and simplifying tax management.