French Property Buying

Advice from Inland Revenue on leaving the UK

IF you have decided to buy a property in France getting your tax affairs in place will be one less thing to worry about.

The Inland Revenue has a list of Frequently Asked Questions hidden away on their site.

It is reproduced below and answers such questions as residence status, tax on property income and building society accounts…

Opening a bank account in France

IF you are staying in France for any length of time you will want to open a bank account. It is not a difficult task and the French banking system is quick and efficient, requiring very little on your part.

A simple current account, compte de cheques or compte courant, can be opened with proof of identity, such as a passport, address details, a phone number if you have one and €20 to deposit straight away.

I took along a recent print out of my UK account, my UK cheque book, birth certificate and even four passport photographs – I did not need them.

Finding a French estate agent

FRENCH estate agents (agent immobilier), just like their British counterparts, are there to bring buyers and sellers of property together.

To work in their own right an agent must possess a carte professional which is granted to those who have met standards or have considerable experience.

Rules of the road in France

DRIVING around France can be a real pleasure compared to the clogged roads of the UK if you remember a few key points.

Before you head across to France make sure you know exactly what cover you have from your current insurance company.

Also if you are a member of a breakdown scheme see if it can be extended to cover you whilst away, it could prove invaluable.

Low cost airlines and French property

THE ease at which you are able to reach your property in France will have a real impact on its success as a holiday home as well as its future sale value.

For example Bergerac, in the Dordogne, has a popular airport and recent research suggests that prices have risen by 157 per cent since 2001.

Impact of UK credit card charges in France

HAVE you ever checked how much it costs to use your credit card in a cash machine when in France?

Many card issuers charge a higher rate of interest and you may also lose your 56-day interest free period that applies, for example, to normal shop purchases.

Barclaycard charge customers the equivalent of 21.3 per cent annual percentage rate (APR) on cash withdrawals.

France Telecom in English

GETTING a phone installed in your French property will be high on your ‘to do’ list.

But help is at hand with France Telecom’s English language service that allows you to call, toll-free, for advice and assistance.

The French health system

MAKING sure you have the proper health cover in place when you move to France is an important thing to consider.

The system works by providing a first tier of basic cover through different mandatory schemes, which will pay for around 70% of the medical expenses.

The different taxes on a French home

THERE are two types of local taxes in France and you will have to pay them if you buy a property.

Residential tax, or taxe d’habitation, is paid if you own a residential property and use it yourself, or have it available for your use.

This tax is raised by the mairie for the provision of local services and is based on the notional rental value of your property.

French leaseback schemes

IN the 1970s the French government introduced the leaseback scheme for property purchases to boost investment in the tourist industry.

The arrangement works by you buying a house or apartment and then allowing a management company the right to let it to holidaymakers.

And the management company are responsible for the expenses related to the property for example, gas, electricity, water etc.