Anne Genetet’s questioning of the expat tax system

On Tuesday, September 11, Anne Genetet, MP for the French Abroad, presented Prime Minister Edouard Philippe with a report on 215 proposals to encourage French people to move internationally.

Here is the content of the report, including the priority topics that the Member believes is needed:

Governments in the service of international mobility

First of all, the lack of information on the steps to be followed and on the peculiarities of the country is pointed out by this report. It shows the weak support of the public authorities to assist nationals in the administrative process. In this sense, the Member proposes to set up a tele-advice platform, which would prepare for one’s departure abroad, and to ensure a follow-up of French non-residents.

Aligning the expat system with the tax system for French residents

As French nationals are still attached to the tax system in France, they must pay income tax. However, unlike residents in France, expatriates are subject to a minimum tax of 20%, regardlessof the person’s status and income. In this sense, and taking into account that the profiles of expatriates vary (even though expatriates have average incomes higher than those in France, more and more are embarking on new projects, which can induce precarious and irregular incomes), Anne Genetet has therefore proposed to align this scheme with that of residents in France, whose taxation has different levels depending on income.

Just as it wants to abolish the 10-year deadline on Voluntary Old Age insurance (AVV), and also recommends the abolition of social levies on real estate income imposed on non-French residents.

Making it easier to return to France

When they return to France, French expatriates face long and complex administrative procedures. For this reason, the report suggests easing the efforts to facilitate the return to France. For example, in the context of the return of children from expatriate families, families must prove that they have been struck off the list of consulate (document less than 6 months) and also of the school abroad.

Therefore, the return to France is not simple and Anne Genetet therefore recommends in her report to simplify all her steps for the return of nationals.

Finally, it should be noted that the cost of living abroad is generally much higher than in France. Indeed, our health care system gives us free care. However, this advantage is very little present abroad and expatriates must pay health insurance. In this sense, opting for international health insurance is the best option for French nationals. With the Gold Expat contract,you will have personalized health insurance with the best guarantees, at the most competitive rate.

The introduction of these proposals in France could push the French to leave and no longer be frightened by the administrative burden.

Case to follow …