I am a contractor with my own UK Ltd company but am now domiciled and residence in France.
I intend to keep my UK ltd company - All my income is in dividends.
I am going to declare my UK Ltd dividend income on my French tax return.
I have spoken to HMRC and they said that even though I am residence/domiciled in France dividends are a special case and will still be taxed (though the rate is reduced compared to being UK resident)
Therefore, I can fill in the appropriate box on the French tax form (2DC and 2AB) and I should get a tax credit to avoid being taxed twice.
My question is - Is the above way of working legal in France ?
After all, I am declaring my income and will be paying impot and cotisations.
If people are wondering why am I doing this and not going the SARL route etc…well, it’s just much easier and straightforward.
And surprisingly, Impot dividends + HMRC corporation tax is less than total outgoings for SARL…