The expatriate tax system called into question by Anne Genetet

On Tuesday September 11, Anne Genetet, Member of Parliament for the French abroad, presented Prime Minister Edouard Philippe with a report containing 215 proposals to encourage French people to take up international mobility.

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Here are the contents of the report and, in particular, the priority subjects that the MP believes require reform:

Public authorities at the service of international mobility

First and foremost, the report points to a lack of information on the steps to take and the country’s particularities. It shows the lack of support from public authorities to help nationals with administrative procedures. With this in mind, the MP is proposing to set up a tele-advice platform to help people prepare for their departure abroad, and to monitor the progress of non-French residents.

Bringing the expatriate tax regime into line with that of French residents

As French nationals are still subject to the French tax system, they must pay income tax. However, unlike residents of France, expatriates are subject to a minimum tax of 20%, regardless of their status or income. With this in mind, and taking into account that expatriate profiles vary (even if expatriates have higher incomes on average than those in France, more and more of them are embarking on new projects, which can lead to precarious and irregular incomes), Anne Genetet has therefore proposed aligning this regime with that of residents in France, whose taxation has different levels depending on income.

It would also like to abolish the 10-year time limit on voluntary old-age insurance (AVV), and recommends the abolition of social security contributions on property income taxed on non-French residents.

Facilitating the return to France

On their return to France, French expatriates are faced with long and complex administrative procedures. For this reason, the report suggests streamlining these procedures to facilitate the return to France. For example, in the case of returning children from an expatriate family, families must prove that they have been struck off the list of the consulate (document less than 6 months old) and also of the school abroad.

As a result, returning to France is no simple matter, and Anne Genetet’s report therefore recommends simplifying all these procedures for returning nationals.

Finally, you should be aware that the cost of living abroad is generally much higher than in France. In fact, our healthcare system allows us to benefit from free treatment. However, this benefit is rarely available abroad, and expatriates must pay for health insurance. In this sense, opting for international health insurance is the best option for French nationals. With the Gold Expat contract, you’ll have personalized health insurance with the best cover, at the most competitive rates.

The introduction of these proposals in France could encourage French people to move abroad and no longer be afraid of the red tape involved.

To be continued…

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