What are the requirements to maintain non-tax resident status in France while conducting business there?

Question from Ghi, What are the requirements to maintain non-tax resident status in France while conducting business there?

Answer from AI:

In France, tax residency is determined by several factors, not just the length of your stay. Even if you stay in France for less than 60 days per year, you could still be considered a tax resident under certain conditions.

Criteria for Tax Residency in France

According to the French Tax Code (Code général des impôts), you are considered a tax resident in France if you meet any of the following conditions:

• Your main home or place of abode is in France.
• You carry out a professional activity in France, unless it is a secondary activity.
• Your economic interests are situated in France.

If you do not meet any of these conditions, you are generally considered a non-tax resident.

Conducting Business in France as a Non-Tax Resident

If you are a non-tax resident conducting business in France, you may be subject to French taxes on the income generated from your French activities. This is determined by the Double Taxation Treaties (DTTs) that France has with various countries.

Steps to Maintain Non-Tax Resident Status

To maintain your non-tax resident status while conducting business in France, you might consider the following steps:

1. Ensure your main home or place of abode is not in France.
2. If you carry out a professional activity in France, it should be a secondary activity.
3. Keep your economic interests primarily outside of France.
4. Stay in France for less than 183 days in a year, as per the OECD Model Tax Convention.

Consulting a Legal Professional

Tax laws can be complex and the consequences of misinterpretation can be serious. Therefore, it is strongly recommended that you consult with a legal professional or tax advisor who is familiar with French tax law and your personal circumstances. They can provide personalized advice and help you understand your tax obligations in France.

For more information, you can refer to the French Tax Administration’s guide on tax residency and the OECD Model Tax Convention.

Please note: This information is intended to provide a general understanding of the law. It is not intended to provide legal advice. Please consult with a legal professional for advice tailored to your specific circumstances.