Κυριακή, 10 Ιανουαρίου 2021

How France defines tax residency after Brexit

 

Residency has long been an area of confusion and, with Brexit, it has become yet more convoluted, due to EU rules, local laws of each country, and Schengen rules. UK nationals, as EU citizens, never had to worry about the right to stay more than a few weeks as we simply had the right to do so. For British nationals, the loss of EU citizenship means that life is now more complicated.

First, we need to know the difference between the right to be somewhere, ie. temporarily reside there, and becoming fiscally resident: changing where you declare your global income, gains and assets for tax purposes. It is important to note the basis for defining tax residency is not the same in France as it is in the UK, so the number of days spent in a country is not the only consideration. In fact, the main French laws defining residency do not even discuss the number of days spent in this country. Residency rules are clarified both in Article 4B of the French tax code and Article 3 of the UK/France Double Tax Treaty.

The first of the definitions highlighted is the foyer ou le lieu de séjour principal, thus where your main residence or home is situated.The Double Tax Treaty states “he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him”. This may be accommodation that you own or is (officially) rented.

What is essential is that it is available for your use and under your control, so if the property is owned by you, but is rented out, this is not deemed to be a home. Also, you may not use the address of siblings, children, parents or friends.Therefore, if your only property is in France, you are considered French resident from the day you disposed of your other property. If you can demonstrate that a property outside France is used by you as your permanent home (eg. the bills are in your name at that address), you can argue your residency either way on this rule.

The next main rule is where you spend “most of your time”. Many ancillary laws, both French and in the tax treaty, refer to 183 days, but it is important to understand that:

  • If you spend less than this time in France, but it is where you have spent “most” of your time, you will still be considered resident;
  • Once you have spent 183 days in France, you are not deemed resident from the 183rd day, but from the day of arrival.

Gaining the right to reside in France (in the sense of a right to live) does not confer the right to residence elsewhere in the EU or Schengen, but just that one country.

 For more information concerning the change of your tax residence, please feel free to contact Advanced Consultants SA.

Δευτέρα, 4 Ιανουαρίου 2021

Non dome for Croesus in Greece: Taxation incentive

 

Inviting new investments, Greece fiscal authorities have created an attractive incentive for wealthy foreign investors. More than 20 filthy rich foreigners who have invested over 500,000 euros each in Greece have become tax residents of this country.

            The tax inducement provides an annual tax fee of 100,000 euros regardless of the amount of income earned by the foreign investors. The investor has to prove that he or his relative or a legal entity in which he has the majority of shares carries a maximum of three discrete investments with total amount 500,000 euros at least. This is the basic prerequisite for the fiscal favorable provision.

            The fiscal context of Non Dome has been activated including investments that open the door to absolutely favorable tax treatment for foreigners. The investments should be made in the following categories:

i.                    Acquisition of real estate in Greece

ii.                  Purchase of existing or creation of new fixed facilities in Greece for business activity through sole proprietorship

iii.                Acquisition of shares in a company not listed on a regulated market

iv.                Purchase of Greek Government Bonds

v.                  Capital contribution for participation in an alternative investment organization

vi.                Purchase of securities traded in regulated markets

The investment is considered to have been completed provided that all the physical object has been implemented and all its expenses have been paid.

Our consultants provide you with specialized advice and undertake the procedures for inclusion in this specific context of taxation. Advanced Consultants SA stands by your side as a reliable partner.