Rule: People who have their fiscal domicile in France are liable to income tax in France for their entire income, whether they are French or foreign source. Failing home tax in France, only be taxed in France on French source income.

The criterion of fiscal residence is therefore of particular importance since it is based on this criterion that will determine the place of taxation tion of income (in the absence of international tax treaty).

Thus, according to French law (Article 4B of the General Tax Code), are considered tax resident in France and individuals, some their nationality, have in France:

1. home
2. their principal place of residence
3. their main occupation
4. the center of their economic interests, ie that France in their main income-producing investments.
5. decision of the competent authorities (nationalité. etc. ..).

The concept of home

The home means the place where the taxpayer or his family lives norm alement, ie their place of permanent residence. So even if one spouse must reside temporarily elsewhere, the home remains the place where the family continues to live, or children are in school and its members or tr ften.

The concept of principal place of residence

The main residence is deemed that to which the taxpayer is physically present and personally as a principal. The test is considered completed when the person staying in France more than 183 days during that year.

The notion of main occupation

A person is deemed to be domiciled in any country according to the place which it actually carries tively and regular professional activity.

The concept of center of vital interests / economic

This is the place where major investments are made in person, also friends of the place or person has his place of business, or the center of his business or the place where it derives most of its revenues. However, difficulties of interpretation remain as to the determination of its center Economic interests.

If you do not answer any of these criteria, you will be considered non-resident under French tax law. By cons, if one of its criteria apply to your case and you are also regarded as tax resident abroad in your country of residence and the existence of a tax treaty prevents double taxation.

In all cases we Vou s recommended to refer you to a tax advisor and / or a lawyer specializing in international taxation to determine precisely which taxes will be applicable.

[15-10-2010]