Plan ahead to avoid a

Plan ahead to avoid a possibly taxing time in France For those contemplating the purchase of a second home in France, or a complete move, the advantages from a tax perspective may represent fantastic value. Jennie Poate, Head of Operations, France for Beacon Global Wealth Management explains… There always seem to be horror stories doing the rounds about tax in France. But if you're planning to move here as a retiree or early retiree and already have some (or all) of your income stream planned, then you could well be surprised. For example: if you're married, you are taxed as a household and will have two taxfree allowances added together before income tax becomes payable. This is certainly handy if, like most people, one of you has a higher income than the other. All pensions receive an abatement or allowance of 10% before tax is payable – every little helps. As an individual in the UK you would pay 40% tax above the £43,300 threshold. Even as an individual in France you wono't reach this height until above €70,000. So even higher earners can pay less tax. The rates for income tax are: Income Tax Rate Up to €9,807 0% Between €9,807 - €27,086 14% Between €27,086 - €72,617 30% Between €72,617 - €153,783 41% Above €153,783 45% As an example, suppose two adults have a joint income of €40,000. Tax liability is worked out on the basis that each has €20,000. The first €9807 of each person is zero rated, tax is charged at 14% on the remainder. There are also exemptions, discounts and reductions available – it can seem like a highly complex formula when you’re trying to fill in the paperwork and work out what’s what. Getting qualified tax advice can save you money, time and heartache (not to mention a headache). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI). All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licensed and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B. The information in this article is intended as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on this information.