People often talk about the 183-day rule in France for being a non-French tax resident and therefore no longer paying taxes there! When exactly
But be careful, this is only one of the 4 criteria, so if you meet any of the other 3, you'll be in for a real treat. The subject remains unresolved!
As a reminder, the criteria are :
- home or main place of residence: home means the place where the taxpayer normally lives, i.e. the place of habitual residence, provided that this residence in France is of a permanent nature.
- or their professional activity: people who carry out a professional activity in France, whether salaried or not, are also considered to be domiciled in France, unless they can prove that this activity is carried out on an ancillary basis.
- or the center of their economic interests, i.e. the place where taxpayers have made their main investments, where they have their business headquarters, or from where they manage their assets.
If one of these criteria is met, the taxpayer will be considered to have his or her tax domicile in France, and will therefore be subject to tax on a worldwide basis, including all income and assets from French and foreign sources. At this stage, it is strongly recommended to carry out an expatriation asset assessment to define the risks and adjustments to be made to avoid the risk of being qualified as a French tax resident.
Then, in the event of conflict, we'll call on the tax treaty (hopefully one exists with your expatriation country) to settle the dispute.
But what is this 183-day principle?
As a general rule, taxpayers who stay in France for more than six months in a given year are considered to have their main place of residence in France.
So we're talking about 183 days or half a year on French territory... but it's better to think in terms of a "main stay".
The main residence requirement is deemed to have been met when taxpayers are personally and effectively present in France on a principal basis, regardless of where and how their families live.
What's more, it's equally important that those concerned live in a hotel, with a family or in accommodation provided free of charge.
However, the duration rule is not an absolute criterion. For example, a taxpayer who has stayed in several countries in the same year will be considered to be domiciled in France for tax purposes if the duration of his stay in France is greater than the duration of his stays in the other countries. This is what case law reminds us.
Note that this 6-month rule does not apply to the taxation of income for the year in which the taxpayer acquires a domicile in France or, on the contrary, transfers his domicile abroad.