# French bank account



## davep (21 Nov 2010)

As I have had a french bank account for the past five years, an account I use to pay my local taxes on a holiday property, that I hope to retire to in two to three years. I am considering transferring some of my AIB savings there. Can anyone tell me what are my obligations in relation to the Irish tax office are. Is it necessary to declare the account and the amount in it?
Am I being too caught up in the whole stability of AIB as a bank?
Thanks 
Dave


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## Time (21 Nov 2010)

What business is it of the Irish tax man? 

I would be more concerned about the French tax system.


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## TSThomas (21 Nov 2010)

Time said:


> What business is it of the Irish tax man?


?

[broken link removed]

Foreign Deposit Accounts

Q.1 I hold an account with a financial institution outside the State and interest is earned on the monies invested. Is the interest liable to Irish tax?

A. Yes. Income Tax is payable on foreign deposit interest income. Such tax is payable under Self Assessment within what is known as the Pay and File system...


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## Marietta (21 Nov 2010)

TSThomas said:


> ?
> 
> [broken link removed]
> 
> ...


 

Why should the OP worry about the Irish tax system if he intends to retire to France in a few years.


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## TSThomas (21 Nov 2010)

OP asked what their obligations would be, not whether or not they should give a damn either way.


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## davep (21 Nov 2010)

Time said:


> What business is it of the Irish tax man?
> 
> I would be more concerned about the French tax system.



what would your concerns be? Do you consider it a good idea to put a major part of my savings into my French account? I had always just thought to transfer from my AIB account to my Credit Languedoc account, as I do at the moment online as and when I need to.
thanks for your input, it is really useful to bounce ideas here on these boards


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## Greta (21 Nov 2010)

I think you need to declare on your Irish tax return when you open a foreign bank account and how much you initially deposited in it. After that you don't need to declare any movement of funds but you need to declare interest earned on foreign bank accounts and pay tax on that. You may be given credit for French tax already paid on this interest, or you may be able to receive your interest gross in France while you are non-resident there, and just pay tax in Ireland, I am not sure.

I do actually think that it's a good idea to transfer some of your money into your French account, just to spread the risk.


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## Expat64 (21 Nov 2010)

Greta said:


> I do actually think that it's a good idea to transfer some of your money into your French account, just to spread the risk.


  From my point of view, if you already have a foreign bank account - use it!  I currently work in Malaysia, and as I have an account in a Malaysian bank, I took the opportunity to shift some of my savings here. The rest is in an NIB account.


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## Mommah (21 Nov 2010)

Your income tax return (form 11) asks you to give details of your foreign bank accounts.
It also asks you specifically about any foreign interest earned.
It wasn't clear from my statement if french dirt was deducted or not....but I think not.
There is a reciprocal tax agreement between France and Ireland, so AFAIK you only pay tax in one OR the other...not both.

But I am not an expert.


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## galleryman (22 Nov 2010)

if you declare your deposit interest earned in 2010 within another EU country  by the tax deadline in 2011 then you only pay DIRT on that money to the Irish Revenue. If you miss the dealine then you owe Income tax at your marginal rate.
 Not sure the deadline, sorry


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## davep (22 Nov 2010)

galleryman said:


> if you declare your deposit interest earned in 2010 within another EU country  by the tax deadline in 2011 then you only pay DIRT on that money to the Irish Revenue. If you miss the dealine then you owe Income tax at your marginal rate.
> Not sure the deadline, sorry



Thanks for that. At the moment I have two sections in my account. One is just for putting in cash as and when I need it for payment of the Tax D'Habitation and the tax fonctionaire ( General house tax in France and a services charge tax) Just as a reference to the Irish debate I pay €780 for first and €750 for second for the year!!! Oh yea, if I do not get a bill, then its my responsibility to go and request it by the due date. Otherwise I will be liable for fine plus interest due to late payment, even if its their fault!!!
On the first section I do not get any interest, in fact it is €5.60 per month just to have the account. At the moment I only have €15.61 in the other savings account. So I think I should be OK with the Irish tax office and can inform them as I transfer cash to the second account. I do not intend as yet to become a permanent resident in France, only spend 4 to 6 months there at different intervals during the year. I will have to find out if tax is taken from my account interest in France as standard. 
Thanks to all for your great insights into this issue. Not really sure if this morning's announcement makes things safer or not though?


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