Family reunification triggering tax residency review in France
A Ukrainian business owner moves to France and brings his family under a family reunification program. They live together at the same address, but the family members do not earn income and are not included in a joint tax return. The question arises whether the family members are recognized as tax residents despite lacking income.
Input Data
- Individual: Ukrainian entrepreneur
- Residence permit: Obtained in France
- Family status: Spouse and children relocated under family reunification
- Income status: No income for family members
- Tax filing: Not included in joint declaration
Jurisdiction Conflict
Country of registration — The entrepreneur is formally registered in Ukraine, where his business activities are based.
Country of effective activity — The family resides in France, indicating a shift of personal activities and family life.
Conflict — The potential conflict arises from the family's physical presence in France, which may lead to their classification as tax residents, despite the lack of individual income or inclusion in joint tax filings, creating ambiguity in residency status.
AI Analysis
Scenario A — Physical Presence Interpretation
- French tax authority may consider physical presence as a primary factor for residency.
- Family members could be deemed tax residents of France.
- Risk: Misalignment with Ukrainian tax obligations.
Scenario B — Family Ties Consideration
- Family ties in France may strengthen the case for residency.
- Recognition of residency could lead to tax obligations in France.
- Risk: Dual residency issues if not properly documented.
Scenario C — Center of Vital Interests
- Determination of the center of vital interests as being in France.
- Could result in residency status and associated tax responsibilities.
- Risk: Uncertainty if interests are not clearly demonstrated.
Key risk indicators
- Continuous physical presence in France.
- Lack of income documentation for family members.
Output of Richys AI Analysis
- AI assesses exposure based on physical presence and family ties.
- AI matches facts with residency criteria in France.
- AI highlights need for expert escalation to resolve dual residency issues.
Expert Boundary
Involvement of a verified EU expert is required for:
- country-specific interpretation of the center of vital interests
- application of the Ukraine–France tax treaty to concrete facts
- selection of a defensible filing position
- preparation for potential tax authority inquiries
Case Conclusion
French tax authorities observe the family's physical presence. Assumption that lack of income negates residency is exposed. Mismatch between physical presence and tax filing status identified. Risk becomes material if residency is challenged.
Start case analysisThis case is for illustration purposes only. Real outcomes depend on residence, income structure, documents and timing. For your specific situation, use structured case analysis with AI and verified EU experts.
Ria Solberg
AI assistant – Immigration & Residence
