Independent financial advice is essential when living in France
Professional investment Consultants (Europe) SA have been providing wealth management and financial planning services to expatriates and people who live international lives for over 15 years. With twenty five consultants operating in nine countries, we are one of the largest and most respected groups in Europe.
We recognise that your personal and financial circumstances are unique. So we take time to get to know them before we begin to make our recommendations to you. We believe in taking a balanced long-term approach to your financial planning. It’s this thinking that has enabled us to establish lasting relationships with our loyal and diverse client base.
John Gwilliam and Stephen Demaine have worked in the banking and financial services sector for many years in France. They are both based in the Alpes Maritimes but have clients throughout the country.
They strongly recommend that people becoming resident in France review their UK based investments as quickly as possible – and preferably before they actually make the move. ISAs, PEPs and Premium Bonds are tax free in the UK but are taxable here in France.
Two key areas that need close attention are the tax rules that apply to different types of investment and French succession law. There have been numerous changes to the former as the French government increases their revenue as they try to reduce their budget deficit. Recent finance bills have changed the way that tax on bank interest is calculated and also for capital gains tax on the sale of investments.
Depending on your personal situation, it may be worth considering the benefits of investing via a life assurance policy (assurance vie). These have two main advantages. The amount of income tax and
capital gains tax payable is substantially reduced to zero whilst the money stays in the policy “wrapper”. When you wish to take money out, this is taxed only on the amount of gain made on each amount during a tax year. The amount of the gain is added to other income and then taxed at the current income tax rates applicable.
However, you have the option to ask the insurance company to pay a fixed rate of tax on your behalf. These rates are 35% in the first 4 years of the policy, 15% in years 5 to 8 and only 7.5% after 8 years. Also after 8 years, you would benefit from an annual tax allowance of €4,600 for a single person or €9,200 for a couple. Social contributions of 15.5% are also payable as usual in France but again only on the gain element.
If the policy is started before your 70th birthday, there is no tax payable on the death benefit up to €152,500 per beneficiary. Amounts over this have a flat rate of 20% deducted up to €700,000 and 31.25% over this figure. Unlike normal succession tax, these rates apply irrespective of your relationship with each beneficiary.
If you feel that PIC could be of assistance to you, please contact John and Stephen now or in the future.
This service is exclusive to individuals with a minimum of €100,000 to invest.
Tel: 04 93 42 13 19