Being a mixed couple : One member living in France, the other member abroad, for what tax implications?

Mixed couples, where one partner is living in France and the other is living abroad, face a number of tax implications. In this article, we’ll explore some of the key considerations that should be taken into account.

First and foremost, it’s important to determine the tax residency of each partner. As we mentioned earlier, tax residency is based on a number of criteria, including where your home is located, how many days you spend in France, where your main activity is located, and where your economic interests lie. Depending on the specific circumstances of the couple, one or both partners may be considered tax residents of France.

Once tax residency has been established, the next step is to consider how this impacts the couple’s tax obligations. If one partner is a tax resident of France and the other is not, then the French resident partner will need to declare their worldwide income to the French tax authorities. This includes income earned by both partners, regardless of where it was earned.

If both partners are considered tax residents of France, then they will need to declare their worldwide income to the French tax authorities. This can be a complex process, as it may involve coordinating with tax authorities in the other country to ensure that income is not double-taxed.

It’s worth noting that tax treaties between countries can have an impact on the tax obligations of mixed couples. These treaties can provide relief from double taxation and can help to ensure that each partner is taxed fairly. It’s important to consult with a tax professional to determine how any applicable tax treaties may impact your specific situation.

Another important consideration for mixed couples is the impact on inheritance tax. In France, inheritance tax is levied on the value of the deceased’s worldwide assets, regardless of where they are located. This means that if one partner is a tax resident of France, their worldwide assets could be subject to French inheritance tax, even if they are not physically located in France.

Finally, it’s worth noting that being a mixed couple can also impact other areas of personal finance, such as social security and healthcare. For example, if one partner is living and working in France, they may be eligible for certain benefits and contributions that are not available to their partner living abroad.

Given the complex nature of tax implications for mixed couples, it’s important to work with a tax professional who is familiar with both French tax law and the laws of any other country involved. At AGN Avocats, our team of tax lawyers has extensive experience working with mixed couples and can provide expert guidance on how to navigate this complex area of law.

If you have any questions about being a mixed couple and the tax implications that come with it, please get in touch with our dedicated lawyers on www.agn-avocats.com.