Hello from Brussels, have a think about Belgium. In Brussels life is way more cheaper than Paris and most businesses speak English due to European institutions so foreigners are more than welcomed. Healthcare is way better than in and we don’t have strikes like in . To go to visit is just an hour ride by car and Holland 30 minutes ride. I’m Belgian by the way but lived in Canada, NZ, Cook Islands etc.. you can find a place to stay easily and enjoy a better life than in the USA

 

My question would be: How would such a setup be taxed in - including all mandatory social charges (health insurance,...).

OK, assuming ALL your income is sourced from the US, you would still file a tax declaration, but basically the French Fisc gives you a tax credit "at French tax rates" (i.e. without regard to what you pay - or not - to the US IRS). Basically, they credit you for the proportion of any tax assessed (by , obviously) that represents the US sourced income. So, 100% US sourced income, 100% tax credit. (And yes, you do want to hang onto the tax assessment document as it is a valuable financial document for oh, so many reasons - even if you pay no tax.)

Assuming you have French bank s (which you definitely will require to live here), bank interest earned is taxed at a rate of 30% - made up of income tax at 12.8% and "cotisations" at 17.2%. This amount is withheld from your savings when earned. The "cotisations" do not entitle you to any sort of benefits, though if you're retired and enrolled in the French health care system, you can consider that part of your contribution to the system. (Otherwise, if you are living off your US SS, your basic health care is free of cost. Your mutuelle is paid for entirely by yourselves.)

 

Thank you so much for your always very clear and understandable information - it is quite inspiring.

Quickly to taxes:
Coming from the US I totally get and value the aspect of "cotisations" since it creates a safety net for all citizens and residents.

On another tax note: Is there a French software program (like in the US: TurboTax) or website that could help with filing taxes in ?

Many thanks again...

 

Your first tax return will be on paper and when we did ours we took all our information to the tax office and the agent completed the forms with us. As Bev has noted several times the agents are generally very helpful unlike their counterparts elsewhere.

 

Thank you so much for this additional info - great to know. I am amazed to know that the French agents at the tax office have the time, patience and good will to help to complete the forms. In the US nobody even likes to go anywhere close to the tax office...

How long did it take you to complete the return together with the agent? In the case that one's French is not that good - how are the chances that the French tax office agent speaks English or is it better to hire a translator for the tax office visit? Our tax return would be pretty simple I would hope since we only receive social security and have some savings /interest in the US but nevertheless I think we would need help filling out the tax return for the first time...

 

Some tax offices will have someone available who speaks English, others won't. It depends on where you are located and which office covers your particular area.

 

Not only that, but not all agents will be fully conversant with the very important US- tax treaty. Without this knowledge you may be taxed for something that you shouldn't be.

 

I'd suggest getting an ant to file your first French tax return.

 

Thanks for the suggestion - are there any 'ant portals' in which one could filter by 'English speaking' or would a local Google search bring up adequate results also?

 

Just thought of something else Japan-related. Because Japan doesn't permit t bank s, tax filings, home ownership, etc., my finances and my Japanese husband's were always largely segregated, apart from one t we opened when we lived in the US a long time ago. I had always paid the US taxes on whatever income that threw off, as my husband didn't file any US returns after we moved to Japan. I was caught off guard when my French ant informed us that we would be taxed in (as well as in the US) on my husband's half of the income from that t , as the Japan- tax treaty doesn't provide the same benefit as the US- treaty. It wasn't the end of the world, but it was something we hadn't planned for, so thought it might be helpful for you to know.

 

Thanks again for the valuable input. We also have our US s totally separated with the exception of one common .

I assume then your husband was a permanent resident in the US? The US/Japan tax treaty then really results in a true double taxation for shared assets even if the asset is located in the US - that is really something to be aware of as well as the perspective of 'household taxation'.

 

Thanks for sharing that. The French notion of taxing "by household" changes the way lots of Americans have to think about their finances. (In many ways, it simplifies things enormously - once you get used to how the tax system here works.)