The French and life in France
As you are
intending to buy a property, or may have recently purchased
one, you need to look at the real life of France - it is
very different from looking at it through a tourists’ eye.
The
language
Us Brits do not have a natural affinity to learning a
foreign language. I agree that the whole world should speak
English, but the reality is that we have to have a level of
spoken French to progress us in our new life. This can be
the basics for supermarket and bar/restaurant survival all
the way to having a level of proficiency to conduct
business. Be advised, that whatever your needs are, you
will need some level of French. So often, we hear of bad
experiences in foreign countries and this is often due to
an arrogance about not trying to speak or learn the
language.
It is well worth making the effort and prepare yourself
ahead of time to just get the basics (don’t rely too much
on “O” level French recall!) and then put it into practise
once you are on French territory. The French react in 2
ways when you start speaking to them. They can be stubborn
and pretend that they have NO idea what you are trying to
communicate, or, they smile and correct you
immediately.
Also, be aware, that there are regional
languages and dialects. In the Languedoc, we have the
Occitan- hence, the Pay d’Oc. Add to this, there is a
strong accent of the South, that is very nasal and many
words’ endings and pronunciations are hard. Look at the
history of the Cathars and the Languedoc
Web sites
A good start is to look at the impressive languages section
of the BBC website www.bbc.co.uk/languages/french
Other sites offering free tutorials include
www.frenchlessons.org
,
and http://www.france-pub.com/french/
Formality
The French are a formal people in all aspects of life.
Observe the required formalities in your appearance, speech
and behaviour. Remember, it is almost impossible to be too
formal - but all too easy to be unacceptably casual and
familiar!
A golden rule to remember! Always use the formal vous until
the person you are talking to switches to tu.
They love to dress up at any excuse. Dress up always rather
than down.
Banking
Opening an Account
As a resident or non-resident, you can open a bank account.
You will need to find out what Bank will suit your needs
the best and then make an appointment to see them. Think
about its location to your home and what type of account
you will need.
What you will need:
• You must be at
least 18 years of age
• Provide proof of identity - passport is best
• 2 proofs of address. For non-residents, a utility bill
and a bank statement usually suffices
(Note: As a
non-resident, this must mean that you will spend at least 6
months per year outside France.)
As a
non-resident, you will have a compte non-résident. You can
deposit and withdraw funds in any currency without limit.
You will need a chequebook and a debit card as well. One
vital point about a chequebook. A cheque is regarded as
cash, and if a cheque is paid and happens to bounce due to
lack of funds, you can get blacklisted by Banks as a bad
debtor. Overdraft facilities are usually very low for
non-residents, usually set at €10.
Taxes
Capital
Gains Tax (CGT)
Residential property - assuming that it is not a principal
residence - is subject to CGT on transfer. Property worth
over €15 000 is subject to CGT at 26% up to 15 years after
purchase. There are, however, certain exemptions:
• If you
have owned a property for more than 5 years but less than
15, you are entitled to a 10% reduction in CGT for every
year of ownership over 5. This equates to a 10% reduction
for 6 years, a 20% reduction for 7 years etc.
• If you
have owned a property for at least 5 years and can show
receipts from professionals on substantial expenditure on
improving it, you can claim a maximum of 15% deduction
calculated on the property’s purchase price against CGT.
This does not include work done by yourself nor the cost of
materials purchased for DIY improvement.
Property taxes
There are 3 types of property tax, known as “local tax”
(impôt local).
Taxe fonciere (property tax), taxe
d’habitation (residential tax) and in some areas taxe
assimilee (sundry tax). These taxes are used in a very
similar way to our current Council tax in the UK.
Value Added Tax
VAT in France is known as TVA. Prices that include VAT are
described as toutes taxes compris (TTC); prices exclusive
of tax are hors taxes (HT). The following are the current
tax levels in France:
• 0% (exempt) Basic foodstuffs, kids clothes, medical and
dental care, educational services, insurance, banking and
other financial services.
• 2.1% Medicines reimbursed by social security, newspapers
and magazines.
• 5.5% Certain foodstuffs, books, public transport, cinema,
theatre and concert tickets.
• 19.6% All other services and goods not covered above.
This is the current standard rate of VAT in France.
Blevins Franks are the leaders in advising foreigners about
tax in France. www.blevinsfranks.com
Social
Security
Since mid 2005, the NHS has devised a card, in association
with all other EU countries, called the European Health
Insurance Card (EHIC). This entitles the holder to reduced
costs (or sometimes free) healthcare where treatment
becomes necessary during a temporary visit. Valid only for
treatment offered under the state healthcare schemes
operating in these countries. It gives you access to
treatment under the same terms as people that live in the
country that you are visiting. Remember, it is not a
substitute for travel insurance.
To apply for this card, go to www.ppa.org.uk site, and
under links, you will see an application form for your
EHIC. It will take about a week to be sent to
you.
If you are staying longer, or a permanent resident, you
will need to register for social security. This is
available through the Union de Recouvrement des Cotisations
de Securite Sociale et d’Allocations Familiales (URSSAF).
Find your closest registered office through
www.ces.urssaf.fr. You will
need to make contributions into this fund. Generally how
the state health system works is that you are required
to pay in full for your treatment and then you send the
receipts off and will usually get reimbursed from 85% -
100% of the total costs.
Purchasing
a property
This is quite a minefield, but a very worthy and fun
exercise to undertake. It is often easier to use Property
Finding experts, who will take you by the hand and make
finding the right home much easier. On our web site
there is a section called French Legal Guide that will give
you the basics.
Have a look at our properties for
sale
(Note: This guide
is meant to be only for guidance and personal advice, and
as such, we hold no responsibility whatsoever for incorrect
information. You are advised to get professional
advice.)
The French and Life in France
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