As a result, many American expatriates living in France have to file two tax returns and threaten them with double taxation. The countries with which France has double taxation agreements (DBA) are listed below: while the tax treaty between the United States and France does not cover the taxation of social security, a separate agreement, called a totalization agreement, helps American emigrants in France not to pay social security taxes to both the U.S. and French governments. Contributions from expatriates who have been paid in France can be credited to one of the two payments in the system. The country they pay depends on the length of their life in France. In Article 24, the treaty also provides for the exemption of double taxation for Americans living in France and French citizens living in the United States, but instead of simply exempting American expatriates living in France from U.S. tax, the treaty allows them to claim U.S. tax credits of the same value as the French income taxes they paid when they file their tax returns. The U.S.-France tax contract provides for double taxation on different types of income and capital gains tax, but, as has already been mentioned, the benefits for American expatriates living in France are limited. However, the contract ensures that no one pays more taxes than the higher tax rates of both countries, and it also determines where to pay taxes, which normally depends on where the income is generated. If your rental income per year receives more than €15,000 or per option, if this is to your advantage. (Warning: this option is irrevocable for 3 years).
France, on the other hand, only asks French residents to collect French taxes. An American generally qualifies as a French tax resident if his or her primary residence is in France or if France is where he or she is working or when he is at the heart of his economic interest. Enter the result in Part 4 of Form 2042 (line 4BA, if it is a win). This income is taxable in France if the property is located in France. See the document prepared by the Office of the Tax Officer on the taxation of French rental income of North American residents in France.