Taxes (Encore!)

This was the year I finally found my rhythm filing in two countries.  I did my US business taxes in March, my US personal taxes in April (though I needed some French income estimates to complete them), my French business taxes in May, and my French personal taxes right before June.  Yes, Americans, from the country ostensibly founded on a tax revolt, always get to file taxes, no matter where they live in the world.

Everyone has different strategies and situations and how much you actually pay in taxes is down to how well-constructed those strategies are.  What I have been reminding people in previous articles over the years (here and here) is that the moment you pass 183 days in a calendar year of living in France, you transform from being a regular resident to a fiscal resident, and as such, are required to file taxes, even if you are here on a visitor visa and have earned no French income.  As I often say, the French love documentation and paperwork and the Ministry of Finance doesn’t share records with OFII in this regard and even if they did, they wouldn’t care.  They want their own proof of your fiscal liabilities (or lack thereof) during your stay here.

If you aren’t an accountant who speaks French and also knows French accounting law, I would strongly advise against self-filing.  If you need the recommendation of someone reliable, my accountant has been filing for me since my first fiscal year in Paris and now handles my file that includes French income and tax liability.

I’ve also found new French business accountants, who have been a dream to work with and delivered the kind of customer service that I had hoped for when I signed up with the last firm I used (who I have severed ties with).

I often hear from people who mention in their emails that “no one ever told me about this” and while I fully understand that sentiment, as I had to be told about this issue myself, you can’t have that attitude when emigrating to a new country, or even staying there just a few years.  Do not wait “to be told” about anything.  You are not a customer in a store.  You are a visitor and/or future possible citizen.  Read everything you can and continuously educate yourself.

Further, be assured that as cryptocurrency begins making greater inroads and banks continue to become more rigorous in their compliance, that taxes will follow you, wherever you might be domiciled.  You won’t get to skate out of a tax system simply because you aren’t living in your country of nationality and/or because you’re a legal resident of a country in which you’re a foreigner.  Be proactive.  It will go a long way to preventing unpleasant messages in long white envelopes from either the IRS or the Ministry of Finance.

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