# Potential tax implications for receiving a familial monetary gift while in France



## saffron_gin

Hello!

It just occurred that there maybe tax implications for me as I am now resident in France (since sept. 2021)...for receiving a monetary amount from third country resident family member...as a US citizen I know I am not liable for tax as I would only be a recipient and it is from a family member...but how would it change since I am now resident in France...any insights would be greatly appreciated. Thanks.


----------



## tardigrade

I guess it would depend on if it puts you above the threshold for actually having to pay tax there.


----------



## saffron_gin

tardigrade said:


> I guess it would depend on if it puts you above the threshold for actually having to pay tax there.


Even though technically it isn't income but a family allowance type thing?


----------



## Bevdeforges

A gift is normally considered part of the inheritance tax system - not income tax.


----------



## tardigrade

Bevdeforges said:


> A gift is normally considered part of the inheritance tax system - not income tax.


does this include coming from a foreign land? Thru that foreign lands banking system? Direct to a French bank?
Does it need to be declared on a tax form??

Many questions as I am in the same boat as you say (not inheritance though, just monthly payments from a family member) but the amount does not increase my tax liability in France but it is monthly and does add to my overall wealth ( beer/cigarette & other expenditures monthly).


----------



## Bevdeforges

Check on how the French define reportable income. But I have received money from overseas now several times that is best characterized as a "gift" and there have been no tax consequences. Receiving a "pension" (i.e. child support, spousal support, etc.) is one thing (i.e. potentially "income") whereas receiving a sum in settlement of an inheritance is rather different. Hey, you can always ask at the tax office if you're not sure.


----------



## saffron_gin

Bevdeforges said:


> Check on how the French define reportable income. But I have received money from overseas now several times that is best characterized as a "gift" and there have been no tax consequences. Receiving a "pension" (i.e. child support, spousal support, etc.) is one thing (i.e. potentially "income") whereas receiving a sum in settlement of an inheritance is rather different. Hey, you can always ask at the tax office if you're not sure.


Thanks for clarifying. Would I have to report it somehow? And if so, how?

Also I don't think I have to file/report taxes for last year as I was only resident for 4 months, yes? And even though I have no current income, other than this inheritance related gift, I still will have to report next year yes?

TIA.


----------



## Bevdeforges

Oh, French taxes aren't quite as "logical" as all that. <g>

I suspect no one will bother you if you don't file for last year (2021) but you may find that if you do file for the period of time that you were resident in France last year, the resulting avis d'imposition ("proving" that you owe 0€ for the period) may come in quite handy at a later date. 

Next year (well, 2022 - "this" year) you probably should file no matter what your income status. Again, those avis d'imposition can come in handy for proving residence, level of income/resources and whatever else. What are you living on? Because if you're receiving interest or a pension or anything else from outside France you really do need to declare that (whether or not it's taxed here) so that it is figured into your "revenue de référence" on the avis. This figure is used for several purposes, including determining your eligibility for various benefits and adjustments to the taxe d'hab and all.


----------



## BackinFrance

You really should declare next year for this year given you are resident and it is a legal requirement even if you are below the tax threshold in France.


----------



## saffron_gin

Bevdeforges said:


> Oh, French taxes aren't quite as "logical" as all that. <g>
> 
> I suspect no one will bother you if you don't file for last year (2021) but you may find that if you do file for the period of time that you were resident in France last year, the resulting avis d'imposition ("proving" that you owe 0€ for the period) may come in quite handy at a later date.
> 
> Next year (well, 2022 - "this" year) you probably should file no matter what your income status. Again, those avis d'imposition can come in handy for proving residence, level of income/resources and whatever else. What are you living on? Because if you're receiving interest or a pension or anything else from outside France you really do need to declare that (whether or not it's taxed here) so that it is figured into your "revenue de référence" on the avis. This figure is used for several purposes, including determining your eligibility for various benefits and adjustments to the taxe d'hab and all.


I have no income other than maybe a few dollars in an interest bearing savings account in the US. The rest is a non-interest bearing account (savings/proceeds from a house sale from a few years ago)...I had thought to put it in an investment account with the bank but didn't end up doing that (well no one is going to give me the capitalist of the year award)...so not sure what I would need to declare to the authorities? My erstwhile savings/cash holdings (non interest bearing)...?


----------



## BackinFrance

At that rate your TDS will not be renewed if it is of the renewable variety. If it is not of the renewable variety then you might be able to not declare.


----------



## saffron_gin

BackinFrance said:


> At that rate your TDS will not be renewed if it is of the renewable variety. If it is not of the renewable variety then you might be able to not declare.


Thanks I would appreciate replies pertaining _just_ to the questions asked.


----------



## BackinFrance

saffron_gin said:


> Thanks I would appreciate replies pertaining _just_ to the questions asked.


OK but it's difficult to reply to the questions asked without knowing whether your TDS is of the renewable variety. If it isn't, it will probably make no difference if you don't make a declaration. Even if it is, you could simply declare the small income from your US savings account.


----------



## Bevdeforges

saffron_gin said:


> Thanks I would appreciate replies pertaining _just_ to the questions asked.


Getting back to that, you do technically have to declare the interest on foreign bank accounts or earnings on any investment accounts. Good for you, actually, because the French tax declaration system can be tricky in that regard. There are protections against dual taxation, but you have to report the right amounts in the proper boxes. Best doing it the first time with small sums until you get the hang of it. Also, you need to declare all foreign (to France) bank accounts - just the accounts, no balance information. But it's fairly easily done and shows that you're getting into the swing of residence here.


----------

