France has much the same taxes (e.g. income tax, capital gains tax, property tax) as other countries. However, there are several differences between France and many other countries:
* In most English-speaking countries (e.g. UK, USA, Canada) income tax and social taxes are calculated on an individual basis. In France, they are calculated on a family basis. This is explained in more detail below, but in simple terms the income for all family members is added up and then divided by the number of people in the family.
* There are a number of tax loopholes and exemptions specific to France.
These factors mean that some people see a large increase in taxes when they move to France, some see a large decrease, and some see little change.
The main factors that determine which category one falls into depends on where one comes from (e.g. USA has relatively low taxes, so people moving to France from USA generally see an increase in taxes) and on individual circumstances (large families tend to benefit from reduced taxes while single earners often see increased taxes).
Following is an explanation of various taxes and how they are calculated:
* TVA (VAT or sales tax)
* Taxe Foncières, Taxe d’habitation (Property tax and habitation tax; equivalent to UK council tax)
* Income tax
* Capital gains tax
* Social taxes (CSG, CDRS)
* Inheritance tax
* Gift tax
* Wealth tax
* Corporate and Business taxes
* Assorted other taxes
For further information please download free PDF brochure