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Hi Everyone,

I am considering two jobs, one in London and one in Paris. I will have to negotiate salaries soon and I am trying to understand the French system of taxation. Specifically, I am interested in net take home pay (after taxes, social security and all the other levies that government like to find funny names for like ARRCO and AGIRC ...).

I have read some report that says that on a 90K salary, I would pay 22K in taxes, then 7K is CSG then 5K?? in ARRCO/AGIRC. Leaving me with 55K take home.

Is that correct? Are there any other taxes (I heard lodging tax)? How would it change if I get lets say 120K? I assume that I would be considered executive.

Also, I am Canadian, are there any ways to get tax breaks as an expat?

Thanks for your kind help,

Luc

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Salut Luc,

The taxes (including social security, retirement and CSG) will eat each month 20/25 % of your salary approx. There is also a lodging tax that you pay once a year but the price depends in which city you live and the size of your home.

As a canadien that live in France, I think that you are elligible too for the income's tax that comes once a year and will eat your salary again. I can't give you figures, it all depends what you earn at the end of the year.

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Yes, taxes on your gross salary shall be around 22-25%.
Income tax : once a year. With a 90k, I guess you'll have to pay around 9k.

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Income tax is paid the following year. It is not withheld from your salary. France is one of the last countries in the world to do this, as it makes tax evasion extremely easy. Some people who move often never pay income tax, not to mention foreigners who only work in the country for a short time.

My own payslip shows 23% taken for retirement, unemployment, CSG, mutual insurance plan, etc.

In terms of advantages, you should know that your company will pay a transportation allowance and either propose a subsidized company restaurant or luncheon vouchers, of which you will pay either 50% or 40% of the value (i.e. an 8 euro voucher for 4 euros or 3.2 euros). The value of the voucher varies from company to company.

It is also important to know what the company social works committee (comité d'entreprise) offers. For example, my company committee gives us 300€ a year for any sports or cultural subscription (receipt required), and refunds 30% of our monthly cinema expenses (ceiling of 50€), as well as 30% of one spectacle a month (no ceiling), even if the tickets cost 200€ each. (Refunds are based on employee spouse or companion all children under the age of 21. Single employees can take the person or their choice and/or their own children, if any.) There are also refunds for summer camp, gift vouchers (130€) for Christmas, etc. We can also buy 600€ worth of vacation vouchers with a 40% or 50% discount, depending on the salary. These are accepted at thousands of hotels and restaurants (including McDonald's!), as well as for autoroute tolls, amusement parks, museums and theatres. The list continues, but it is just to tell you that the comité d'entreprise is a very important element of the company and most foreigners never think to ask about it.

It is also good to know that the cost of "personal services" in France is 50% deductible from income tax. This includes housecleaning, ironing, tutoring for the children, minor plumbing or electrical work, and even includes computer repairs (which even most French people don't know). Once again, the comité d'entreprise of my company subsidizes the sale of "service vouchers" (CESU -- Chèque Emploi Service Universel) 20% or 30% depending on your salary. For example, let's say you have a "big" salary. You buy a book of 150€ worth of service vouchers for 120€ (20% discount). If you find a cleaning person for 15€ an hour, the tax credit brings the rate down to 7.50€ an hour, but since you paid 20% less for the vouchers, the actual price is 6.00€.

Just a few things to keep in mind....

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Thanks and Merci everyone, this is extremely useful.

I will also print Kerouac's information which should be really useful (specially since I am too lazy to clean my own place and have used a cleaning lady for years now). Double thanks to you, Kerouac.

I guess I better negotiate hard.

Best,

Luc

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Even if the comité d'entreprise does not offer "CESU," anybody can still get 50% off the services mentioned. The fiscal ceiling is something like 15000€ which most normal people are highly unlikely to reach.

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I think it is a fair generalization that taxes will be higher in France than in the UK. However, in return you get public transport that actually works, and free medical care that is universally described as being of a high standard. Also keep in mind that the cost of living in e.g. London is higher than in Paris (not that Paris is cheap) so you need to have a higher salary in London to play even.

When I came to France I discussed the various employment and taxation options with my employer. I have to add though that my situation is not typical as I was already emplyed by the company and i have dual nationality, which meant i could choose between two different expatriation packages and tax regimes. In the end i chose not to pay tax in France, but the calculation that i rejected clearly showed some kind of tax break for foreigners working in France. This might only apply to EU citizens- but it was something like 20% tax break to encourage highly-skilled foreiogners to work in France. I know holland has a simialr system where foreigners get a 30% break compared to locals.

I don;t remember the details but it might be worth looking into. In the end though, the best solution is to ask anybody that makes you a job offer for a gross-net calculation

good luck


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<blockquote>Quote
<hr>the best solution is to ask anybody that makes you a job offer for a gross-net calculation<hr></blockquote>

That assumes that one's interest in life is to earn as much money as possible without consideration for the quality of life.

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No Kerouac, it allows OP to make his decision based on facts rather than relying on a bunch of anonymous internet users to divine what his take-home pay would be. ;-)

he can still take the lower-paying job if he wants to.


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