Residence is about far more than where you spend your time. Understanding French tax residence, the UK’s Statutory Residence Test and Long-Term Residence rules, and the French residency requirements is essential for staying compliant and making the most of cross-border planning opportunities.
Where are you resident? It seems a simple enough question but, in reality, this question can be complex for expatriates and those with international lifestyles. Different rules apply depending on the context, and the criteria for determining residence vary between jurisdictions.
Are you meeting both your legal obligations and your tax residency requirements?
To stay compliant and make use of tax planning opportunities, UK nationals need a clear understanding of these four key residence frameworks:
- France tax residence
- UK Statutory Residence test
- UK long-term residence
- Lawful residence
Tax residence rules in France
Under the Code Général des Impôts, individuals are deemed to be tax resident in France if one of these four tests is fulfilled:
- France is your main residence or home (foyer) – the place where your close family (spouse/cohabiting partner/dependent children) habitually live, or where most of your personal life is centred. This is the rule the French authorities rely on most and your foyer can be in France even if you spend more time out of the country.
- France is your principal place of abode (lieu séjour principal). This usually means you spend more than 183 days in France in a year, but may also apply if you spend more time here than any other single country and cannot prove tax residence elsewhere.
- Your principal activity is in France – for example, your occupation or main income arises here.
- France is the ‘centre of your economic interests’ – where your most substantial assets are based, your business affairs are, or where you draw a larger part of your income.
If you meet any of these criteria, you are liable to pay French tax on your worldwide income, gains and property wealth. It is your responsibility to declare all your income and assets as required.
UK Statutory Residence Test
The UK Statutory Residence Test (SRT) determines whether an individual is liable for UK tax on their worldwide income and gains each tax year. It outlines the three tests which you work through to determine your residence status. In summary:
1. Automatic overseas test
You are non-UK resident if you spend fewer than 46 days in the UK that tax year – or just 16 days if you were resident in the previous three years – or work full-time overseas with limited time in the UK.
2. Automatic residence test
You are UK resident if you spend 183+ days in the UK; have your only home in the UK, or work there full-time.
3. Sufficient ties test
The third test is used when residence status cannot be established under the first two tests. It is based on a combination of days spent in the UK and the number of ‘ties’ you have to it: family; available accommodation; substantive work in the UK; 90+ days in the UK over the previous two years, and more time in UK than any other country.
You can only be tax resident in one country. If you meet both the French and UK domestic residence criteria, tie-breaker rules specified under the double taxation treaty determine your status.
UK long-term residence status
The UK’s new (from 2025) long-term residence (LTR) regime serves a distinct purpose from the Statutory Residence Test and is principally used to establish liability to UK inheritance tax (IHT). Generally, the key rules and implications are:
- Long-term residence status applies to individuals who have been UK tax resident for at least 10 out of the last 20 tax years.
- An individual retains long-term residence status for up to 10 years after leaving the UK, depending on how long they were resident over the previous 20 years.
- As a general rule, individuals classified as long-term UK residents are subject to UK inheritance tax on their worldwide assets, even if they are currently living abroad – but it’s different in France.
- All UK-based assets remain within the scope of UK inheritance tax, regardless of whether the owner lives abroad, including in France, long term.
- Individuals relocating to the UK who satisfy the long-term residence criteria, including returning British expatriates, may be eligible for a four-year exemption on some overseas returns under the new Foreign Income and Gains regime.
Position for British expatriates in France: France is one of the few countries with an inheritance tax double taxation treaty with the UK. Under its terms, your worldwide assets are only subject to French succession tax, not UK inheritance tax – with the exception being UK assets. Any assets you keep in the UK, to include pension funds from April 2027, remain fully subject to IHT, as well as being assessed for French succession tax.
Lawful residence
Putting tax considerations aside, you must be legally entitled to reside in France, properly registered, and fully compliant with the relevant rules. Since UK nationals lost freedom of movement following Brexit, British expatriates living in France are required to hold either a carte de séjour residence card or a VLS-TS long-stay visa.
Holding a residency card in France means, by definition, that you live here. In practice, this can mean spending at least half a year in the country – typically also making you tax resident in France. You may be required to demonstrate proof of genuine residence when renewing your residence card.
Without a valid residence permit, your stay is limited to 90 days within any rolling 180-day period across the Schengen area. Tighter border controls under the EU’s Entry/Exit System (EES) now automatically record movements across EU borders.
Recent European Commission data indicates that thousands of individuals have already been identified as overstayers and refused entry. Tax authorities may also use this data to identify individuals who meet residency tax criteria but have not declared their status. Increasing digitalisation is creating unprecedented transparency, not only in tracking physical movements but also in monitoring financial activity.
It is therefore essential to ensure full compliance with all residence, tax and reporting obligations.
Becoming resident in France
Moving to the French system might seem daunting due to its administrative processes, but there are compelling reasons not to be deterred by this aspect. France has streamlined many bureaucratic procedures, particularly for non-EU citizens, making relocation smoother than you might expect.
Additionally, there is no real need to fear becoming tax resident in France – more so now considering the direction of UK taxation. In many cases, it is possible to legitimately re-engineer your financial arrangements to make France your very own tax haven, especially if you are retired. Much depends on your personal situation and objectives, and how you plan and organise your affairs, so take personalised, cross-border advice.
Moving and living abroad can be complex, but Blevins Franks makes it simpler. By bringing clarity and coordination to every area of your financial planning, we provide reassurance when you need it most. With offices in the UK and France, we guide you through each stage of your journey, so you can enjoy life in France with complete peace of mind.
Get in touch today.
