English boat in French inland waters....

[treloper]

Hi there, advice if possible please, I have recently purchased a boat on the French inland waterway system. She was Dutch registered. Have re-registered on British SSR. My question...Is my vessel regarded as being British territory?If I livaboard continuously, will the authorities consider me to be aFrench domicile or resident? At present I still have a home in UK, but what would be the position if I disposed of that? I am retired. Obviously mooring/cruising fees are being paid to the VNF. I realise that I will have to contribute to French health system etc.

 

[tcm]

you cannot have a french-registered boat unlessyou are or the owning company is french. With a brit flag they will expect the owner to be british.

 

[trouville]

If you want a residence in France,while living aboard your boat,you must have a yearly contract with a port for your boat,but the marie must also accept that as your residence,
As a rule it ought to be acceptable,you will need to prove you have a minimum income.

 

[boatmike]

The best advice I can give is that this subject is far too important and complex to discuss here. For example "Residence" and "Domicile" are entirely different things.
Go to www.inlandrevenue.gov.uk.pdfs/ir20.pdf for an introduction to the subject and take it from there. Then employ an accountant!

 

[trouville]

Its not that complicated. Unless that is he has a 120 meter super yacht and just got $30 million for getting saked! (H.P Boss ess)

If you want to live on your boat, and that means for the majority, you sleep and eat there for most of the year (11 months) and perhaps even spend your holidays there.Anyway on board for more than 6months pa.And the boat (your home) remains in France. Then you pay taxes and get benifits (health care school, parking fines)

As its a boat the marie will want but not always insist, on a twelve month mooring contract-then you will be resident in France and must contact the fisc,once is enough, after that all the paper work tax demands will arrive at you post box!
Dont forget to provide you old tax authority with your new address,they will do the rest (send you forms for verification)
After that you may need an accountent and translator. But a resident you will be its quite easy really.

 

[Sea Devil]

You only need to pay into the french tax system if you decide to become a resident. If you are moving around all the time in the boat then the French will take little interest. They are really only interested in making sure that if you earn money in France you pay tax on it...

If your boat is british ssr registered and you are british paying your taxes in the UK and using an e111 type paper for medical cover then there is no problem provide you do not put down roots for more than a year or so in the same place...

Becoming a French resident gets you into lots of paperwork and you have to make French social security payments even when you are retired. Provided you maintain your boat is your 2nd home you really do not have to clock into the French system. Keep your British residency at all costs or you will have to make your boat conform to the French safety standards which is a costly and time consuming business. To have a first home in the UK you do not have to own it - you just need an address - relative/friend - you will need that anyway for UK tax, pension, etc so it is no problem....

 

[trouville]

Nice photo! What you say i quite true,
Between our posts he ought to be able to decide whats best. Remembering that in France they still speak French!And words are not writen as pronounced.
Plus all the UK red tape can be done on-line?? Imagin sitting in your cockpit, Glass of wine beside you some good cheese and bread,typing your tax reterns on your laptop,

On another point are there any good not to expensive sail schools apart from the "glenians" to do a sail course??? Any language, and residential. Over on the French Atlantic coast????

 

[boatmike]

Sorry. It isn't. You have a choice. In fact many choices. The assumption that becoming resident in France may be advantageous in escaping UK tax is often not correct. I looked into it in my own case and taking capital gains, income tax, and inheritence tax into account my best plan was to maintain UK domicile and residency. The simple line of least resistance CAN be right as you suggest, but it can also lose the chap money in the long run and if he pops his clogs while in France his offspring (if he has any) may be faced with all sorts of French taxes to pay before claiming their inheritance. GET AN ACCOUNTANT!!!

 

[trouville]

Yes if he dies it could be very expensive,and of course whatever his will says his wife and children get the property money, Its also less costly but still very expensive to give your property to your children now-keeping the write to use it of course.

Everyone has a different situation,if it were me i would just come over as a tourist,and quitly enjoy myself. Far less complicated perhaps far less expensive as well.

If he INSISTS on getting his papers though he can--his choise and perhaps its better for him. He could also "move" to Switzerland (kanton ZUG) or Anddora. Or Jerrsey, Gibralta----

 

[milltech]

[ QUOTE ]
Yes if he dies it could be very expensive,and of course whatever his will says his wife and children get the property money, Its also less costly but still very expensive to give your property to your children now-keeping the write to use it of course.

[/ QUOTE ]

Definitely worth professional advice, you may have to pay rent on your house at an economic price in order for your children to benefit from the transfer. I have absolutely no knowledge of this, it's not advice, only advice to get advice!

 

[Sea Devil]

If you pop your clogs the 'inheritors' are going to end paying something to one government or another...... In the French system you cannot leave this dosh outside the family and the dosh is divided between spouse + children equally. Because neither of us wanted the kids to be 'in control' if he other popped off when we purchased the French house the notair produced a paper that left the 50% of the joint house to the other.........

If you decide to live full time in another European country then you should take sound financial advice or read up on it - frankly the tax advantages for lesser mortals in being non resident are not great - Also it is perfectly possible to keep all finances in the UK and just transfer sufficient funds to - e.g. France/Spain on a monthly basis to pay local bills.... The French / Spanish would not touch your UK estate and only be interested in your portion of house - dosh in the country of living in.


Never forget you can return to the UK anytime and say I am resident here here again. Instantanious....

 

[trouville]

There is a way not to pay death taxes on the property, to late though for the very poor such as i who moved to France ages ago.
If you plan to buy property fresh then you simply set up a UK co. and that ownes everything.
You pay the tax habitation etc and should declare the value of stock holdings, but companies dont die,so no death duties!! You can also leave it to your children but thats simply less costly and if somthing happens to them------
Indeed for normal people just transfer what you need and live but remember the French write letters forgeting to add their name and address if they think a non French person could help the poor state!!

There is also the Corican way, if you die abroad,just dont tell the French that way no taxes and you get to collect the pension!! In Corsica there are people over 130 years old???