Taxation in international mobility

Key Points of International Mobility Taxation

Taxation is a crucial element in the expatriation process. Anyone wishing to work abroad must go through procedures with both the French tax administration and the tax authority of the host country.

In particular, determining your tax residence is essential to define the applicable tax regime. Grospiron Mobility Solutions advises expatriation candidates on all aspects related to taxation, enabling informed decision-making.

Expatriation and International Tax Management

Expatriation requires organization in various domains: entry formalities in the host country, relocation, settling in, and all administrative procedures. These encompass everyday life matters (social security, children’s education, etc.) and work-related issues (career, remuneration, and taxation).

Grospiron Mobility Solutions can assist and guide you through every step of your expatriation, particularly regarding fiscal aspects.

Procedures with the French Tax Administration

When an independent worker or an employee from the public or private sector plans to work abroad, they should contact the Individual Tax Department at the public finance center in their municipality or district.

Your SIP (Individual Tax Department) will be your main contact to regularize your situation (especially change of address) and guide you through the necessary procedures, which vary based on individual circumstances.

Your Tax Residence is in France

This notably applies to public sector agents and certain independent workers. You must pay taxes on all your income to the French tax authority unless you can prove that you already pay tax on your income abroad.

Any employee seconded abroad by their employer must pay tax in France. Exemptions are possible under certain conditions (e.g., duration of activity abroad or income already taxed in the host country).

Your Tax Residence is not in France

This might concern independent workers and employees of a foreign company. If this is your case, you are only taxed on your income from French sources (such as rents or investment income). However, you should still declare your taxes in France in the year of departure. In subsequent years, you only need to declare income from French sources to the French tax authority.

Administrative Procedures in the Host Country

One of the challenges during expatriation is understanding all aspects of local taxation. It’s possible you may owe income tax, even if your tax residence is in France.

In some cases, this tax will be deducted from your salary. If you’re self-employed, you’ll need to pay taxes to the tax authority of your host country. Thus, you’ll have the obligation to declare your income both in your host country and in France. However, numerous agreements between France and some countries prevent double taxation.

Thanks to its consultant network worldwide, Grospiron Mobility Solutions can aid and inform you about the necessary tax procedures in your host country.

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Assistance in International Workforce Mobility

During an expatriation, other formalities must be completed by the candidate and, if applicable, their family members.

Additional Taxes for an Expatriate

Working abroad involves being well-informed about taxes and other applicable fees in the host country.

  • Work and Entry Visa: Conditions vary among countries. In some cases, and depending on the duration of work abroad, a work visa is sufficient. In other cases, entry formalities need to be anticipated several months in advance. For instance, in Canada, workers wishing to immigrate must integrate into a specific immigration program.

  • Customs Procedures: When moving abroad, you’re required to declare the import of your furniture and other personal belongings in transit.

  • Social Protection: Whether it’s retirement or health coverage, you must notify the relevant agencies before your departure (URSSAF, CPAM, etc.). If you’re a seconded employee abroad, your employer will handle the procedures. Other workers need to inquire with relevant agencies in the host country. You also need to understand the social protection in your country of residence. You may owe taxes and other mandatory levies.

Guidance from International Mobility Experts

Grospiron Mobility Solutions has developed expertise in all intricate aspects of expatriation, based on over 30 years of experience in international mobility. Regardless of your profession, employed or self-employed, we can support you in your new work environment.

We can manage a visa application and other entry formalities as required by the host country. Our consultants are here to advise you on procedures related to local taxation and social protection.

We are also capable of making proposals for your international move. Whether you receive assistance in mobility from your employer or manage the costs of your move yourself, we can assist you with tailored solutions.