Updated: 1997

AND WHERE DO YOU LIVE?

Every expat should be aware of the importance of the "domicile" question, a notion which is not always based on where one spends most of the time but also on notions of workplace and family life etc.

From a fiscal point of view, the "domicile" determines the extent of an individual's fiscal obligations. For example (and though this rule is subject to exemptions and tax treaties), an individual whose tax domicile is in France is liable to French taxation on a worldwide basis: income tax, wealth tax, registration duties on inheritance. Had that same individual's tax domicile been abroad, the fiscal obligations would have been limited.

To avoid being considered as "French domiciled", many foreigners living in France carefully arrange to spend less than 183 days in France. Often, this is not nearly a satisfactory measure.

An individual is considered to be French domiciled when he meets any one of several legal criteria, which include an abode in France or a stay in France superior to 183 days per year. However, two recent judgments delivered by the Supreme Courts made it clear that the reference to the stay is subsidiary to the abode. This means the stay's length can determine domiciliation only when the abode can't be defined by other means. The courts also state that the abode and the length of stay are the main criterion. An individual's abode is considered to be where he or his family usually live and where the family centre of interest lies.

Where a double tax treaty is applicable, and provided there is a conflict of domicile with another country, its successive criteria of residence will prevail over French law.

From the Custom's point of view, an individual is considered as French domiciled if he usually lives in France, or basically spends more than 185 days per year. However, a recent judgment delivered by the Supreme Court implicitly confirmed that the intracommunity stipulations prevail over French ones and that, according to the European Court decision, the residence is the place where a person has his permanent centre of interests (work, family etc).

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