Prepare your Finances Before Moving to France
More and more people living in the UK would like to move to France, which is one of the most popular destinations in the world. Currently, over 200,000 British expats live in France. The main reason for moving from England to France, simply, is a better quality of life. However, for those who are not able to prepare well for their new French living, frequently find themselves in trouble. Indeed, the financial system is very different in France. There is no equivalence to the ‘Financial Services Authority’ (which regulates all financial services in the UK,) separate rules and regulations exist for the three main industries offering financial products: banks, insurance and stockbrokers. For historical reasons, 80% of financial services are virtually provided by banks, offering a full range of deposit, loan, investment and insurance services.
Why do you need a financial advice?
Making the most of your money is paramount if you opt for great financial advice when you are moving to France. But when you are moving it is pertinent to find your house first. When you look for a French accommodation, you often neglect your finances that remain essential. If you do not know how to manage this situation, we suggest you ask a financial adviser who will work in your best interest but can also help you understand the complexities of the financial world. The first step in ensuring you receive the best possible advice is to use an independent financial adviser who is authorized and regulated by both the UK and France.
There are plenty of companies dealing with independent financial advice and being regulated in both jurisdictions, with the in-depth knowledge necessary to ensure you make the most of your money.
Advance your planning
Advance planning is essential because there are steps that should be taken into account before protecting your wealth. Here are some of the main areas where an independent financial adviser can help you.
– Your own investments: When you move to France, you will have to check your investments. When you become a French resident, your PEPs and ISAs will be liable to French taxes. Fortunately, there are many specialists in France that allow you to shelter your investments from tax.
– Your pensions: Whether you are retired or not, moving to France will have an effect on your pension. Regarding pension legislation, tax and currency fluctuations must be taken into consideration. Independent advice from an appropriately qualified and regulated independent financial adviser is essential when you are seeking pension planning.
– Your French property taxes: Many people moving to France believe they will pay more tax than they did in the UK. Nevertheless, with the right planning, you could easily have a lower tax bill. In order to make the most of the planning opportunities, make sure you get advice before you make the move.
– Your inheritance: The legal system in France is totally different from that of the UK, especially in regards to inheritance. The French law means there are certain people who will generally inherit from your estate unless you receive expert advice. Receiving advice and planning prior to your move is essential.
– Your health care: Recent changes in the French legislation means you may need to top up insurance to cover healthcare costs and avoid expensive medical bills. A good adviser will find the best solution for your needs and ensure you do not pay for what is not required.
– Currency exchange rates: These can have a big impact on your wealth. Planning ahead and getting independent financial advice will ensure you access the best rates available and make the most of your money. In May, the average currency was £1 = €1.25
Please keep all these topics in mind before moving abroad, including France. Bon séjour!