# Will someone with French and US citizenship owe any taxes to France with US-sourced income living in Switzerland?



## rsamuelson (Sep 4, 2020)

I am in a somewhat complicated situation. 

I am a US citizen and I know in the future I would like to live in Switzerland freely with US sourced income. I do not intend to be employed by a Swiss company at all in the future. 

I understand that as a US citizen it will be difficult if not impossible to get Swiss residence (B to then C after 5 years) without having a job with a US company which relocates me to Switzerland. 

Therefore I am considering getting French citizenship (have been living in France for a few years and would be able to get that in the next couple years), which would then allow me to live in Switzerland being self-employed. 

My question is, if I am living in Switzerland with a B permit on the basis of being a French and American citizen, with income sources only from the US, will I owe any taxes to France whatsoever? Or only to the US and Switzerland?


----------



## Bevdeforges (Nov 16, 2007)

France doesn't tax based on citizenship. As a French citizen living outside France, you only need to file a declaration and potentially pay taxes to France if you have French sourced income (like bank interest or French based investment income that is taxable). But if you're not resident in France, you would file a NR form to declare and settle on French-sourced income like that.

I don't know enough about Swiss taxes, but in general you'll be on the hook for both US and Swiss income taxes. Just be aware that where your salary income (or self-employment income) is pretty much irrelevant. If you are living and doing your work from Switzerland, then you will most likely need to set up your self-employment as a Swiss business entity of some sort (i.e. to pay whatever Swiss payroll taxes and/or social insurances) and your "primary" tax obligation will be to Switzerland. (Don't phrase it that way to the IRS. <g>) For the US tax system, you'll be entitled to take the FEIE and/or (depending on your circumstances) the FTC (credit against US taxes owed for Swiss taxes paid). Take a look at IRS Publication 54 (on the IRS website) for a more detailed explanation.


----------

