How Does Marriage Affect Your Taxes in France

Just like any other country, getting married in France affects your tax rate in a few ways. But the case in France is not as unique and clear as that in rest of Europe. In France, for example there is no explicit allowance of tax on marriage as can be seen in Britain with the Marriage Allowance and Marriage Couple Allowance.

On a general note, as a married couple in France, what you should be aware of is the Marital Regimesm. The Marital Regime in France does not really recognize you as married but provide for you as a married couple a legal platform such as communal regime which is known as communauteuniverselle and Separate Regime known as Seperation de beins.

The two legal platform as identified above, enables partners in marriage to either present their asset to the law as an entity or to present it individually and this will affect their taxable income as well. But in other words, your taxable income will still remain the same.

In talking about tax and marriage in France, let’s take a look at the available taxable income in France:

Taxable income (Euros) Tax Rate %
Up to 9,710 0
9,710 to 26,818 14.0
26,818 to 71,898 30.0
71,898 to 152,260 41.0
152,260 + 45.0

 

In French tax history, there is no particular taxable amount that is separate for married couple as it is seen in the US and Britain.

However, there is a tax benefit for married couple even to the extent that it can be considerable fair than that of the US. For example, for the above taxable income, while the a person who earns the above amount will have his income taxed on the face as seen above, for married couple, there are provision to ameliorate the level of tax burden on them.

The income tax seen above is calculated according to the total income earned per household. Household means married couple with family – and each category of the above tax level is distributed evenly across the household known as part. So the actual taxable amount is just for one part, then it will be distributed among other parts.

The advantage of the above formula is often seen in the long run – where almost all members of the family are working, meaning each member will not have to be taxed individually but collectively. This method reduces the tax burden somewhat.

One other way to enjoy tax relief for married couples that is not available for singles is in gifting. For example, when a couple transfer ownership of his fixed asset to his spouse or children, such gift becomes tax free. So gifting is a major way to plan you tax relief strategy in France.

Tax Forms

Unlike in Britain where the form is fillable online, in France it involves a rigorous paper work. There are a number of required forms and they include the following:

  • Form 2042 – Main form
  • Form 2042C – ‘Complementary’ income (Micro-Entrepreneurs)
  • Form 2031 – Furnished property rental income (Régime réel)
  • Form 2044 – Non-Furnished property rental income (Régime réel)
  • Form 2042 – BNC Business Income (Régime réel)
  • Form 2031 – BIC Business Income (Régime réel)
  • Form 2047 – Income from abroad
  • Form 3916 – Declaration Accounts held abroad