Working remotely in Paris/around about

**xara** · 21 May 2008, 12:50

Surely someone...

**oracleslave** · 21 May 2008, 12:52

Originally posted by xara View Post

Surely someone...

I have no idea and would be guessing, perhaps try a French accountant?

**BlasterBates** · 21 May 2008, 13:22

Originally posted by xara View Post

Hi all,

Slightly intricate question that hopefully someone can shed light on.

I'm a UK national, contracting for the last few years, mostly in the UK, with my own limited (which is currently dormant). I have the option to do a project for a German company, working remotely, going on the agency payroll. Initially part-time (a couple of days a week) rising to full-time. Currently I'm living in Paris, although I've not been working since I've been here. Given the flexibility of the project, I may remain in Paris, or I may go somewhere else in France/Italy/Croatia, anywhere there is reliable broadband.

Question is obviously about the tax status. Especially if I remain in Paris, I know the tax rules here are pretty stringent such that even if you are doing a contract for a company abroad, if you're doing most of the work in France then French taxes apply (although I'm not sure if this is the case when on a payroll). Presumably there is some sort of double tax agreement between France and Germany but how would this apply in the case of a UK national?

I am envisaging that I will have to pay circa 40%. This is not a problem for me given the flexibility of the job and the fact that the taxes are actually spent on something tangible that works, unlike in the UK where they are lower but disappear down Gordo's arsehole. This, plus the euro's ascendancy, may actually give me a shove to disband the UK limited.

If anyone has done something similar or has an understanding of these things, I'd be grateful for their advice. Thanks.

You're right generally you are taxed where the work is done. If it is a short term contract, then you exploit the 6 month rule. It is generally illegal to operate a business in a country i.e. employ people working there and not register with the authorities.

**NotAllThere** · 21 May 2008, 13:25

Your tax treatment depends on your tax residency - nationality is irrelevant. Different countries have different rules, and you'll need an accountant conversent with both. It is possible to be tax resident in more than one country.

It's not usually legally possible to be tax resident nowhere.

**BlasterBates** · 21 May 2008, 13:41

You probably need to register a "branch office" in France. This branch office would have its own profit taxed in France and wouldn't be paxed in the UK. It is normal practice these days for companies to be registered in more than one tax domain.

**DimPrawn** · 21 May 2008, 13:55

Originally posted by NotAllThere View Post

Your tax treatment depends on your tax residency - nationality is irrelevant. Different countries have different rules, and you'll need an accountant conversent with both. It is possible to be tax resident in more than one country.

It's not usually legally possible to be tax resident nowhere.

Wrong. It is perfectly legal and well practiced.

http://business.timesonline.co.uk/to...icle713162.ece

Is it still feasible for one to become a fiscal nomad for a year before living permanently overseas in order to realise capital assets free of capital gains tax prior to investing them in an offshore trust, or later to avoid IHT? Anon, Somerset

Mike Warburton: The guidance on matters like this are contained in the publication from HM Revenue and Customs (HMRC), IR20. It is possible to become a fiscal nomad without having a residence in any particular country. You may travel to various countries and, in any event, countries have different rules that they apply to determine residence.
If you are moving abroad permanently, but do not want to be trapped for CGT in the country you are moving to, it can be attractive to become a fiscal nomad for a period after the 5th April following your departure from the UK, but before the start of the tax year in the new country. Unfortunately, HMRC are likely to need some persuading in circumstances such as this that you have genuinely ceased to be UK residents if you are not able to show that there is a particular country that you have moved to. It may be advisable to spend a sufficient period in a suitable third country with a favourable tax regime, such as a tax haven in which you become resident for a limited period before moving to your permanent country of residence. Ultimately, it is a matter of fact and evidence and the onus will be on you to prove to HMRC that you have ceased to be UK resident. If you return to the UK within five tax years of the year of departure, the capital gains will be payable in the UK on your return.
Whilst this may help your CGT position, it does not necessarily improve your inheritance tax position. Inheritance tax is determined by your domicile, rather than your residence, and if you have started life with a domicile in the UK, it is very difficult to change it. You would need to show that you have ceased to have any ties with the UK and that you have left the UK for at least three years before you could argue that you have changed your domicile Even if you are able to change your domicile, any assets located in the UK will remain subject to UK inheritance tax (which is normally charged on your worldwide assets).

See also:

http://www.internationaltaxadviser.c...nt/view/34/54/

Working remotely in Paris/around about