Taking care of payments while you travel just got easier with the introduction of a currency card from one of the leading currency exchange providors.

Currencies Direct offer a multi-currency debit card that allows you to pay in pounds sterling, US Dollars, Euros and Australian dollars, direct from your currency wallet.

The card is currently available for customers based in the UK, France, Spain and Portugal, with more countries to be added soon.

Benefits of multi-currency card

There are no monthly card fees. No upfront fees. No recurring fees.

You can use your Currencies Direct multi-currency card in over 200 countries – anywhere Mastercard® is accepted.

You can withdraw money from ATMs, all at Currencies Direct’s competitive exchange rate, not the usual ATM rate (see a comparison to bank rates on their site, it’s incredible the savings you can make on your currency transactions).

And with instant notifications in the Currencies Direct app, you can track their spending abroad and stay in control with features like the ability to freeze/unfreeze your card.

24/7 customer support (award winning customer support at that).

If you have Apple Pay, you can use your Currencies Direct card from you iPhone or Apple Watch.

How to get your multi-currency card

You can register in minutes through our app – available in the App Store or Google Play

Currencies Direct have been helping people save time and money on their currency transfers since 1996 with excellent exchange rates, no transfer fees and exceptional customer service.

You can find out more about the multi-currency card here: currenciesdirect.com

Currencies Direct are the winners of the 2023 Best Business FX Provider award (Business Moneyfacts), and Best Currency Broker award (Good Money Guide). They are authorised by the FCA as an Electronic Money Institution (EMI). And have a level 1 credit rating with Dun & Bradstreet (that’s the highest you can get).

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The currency market moves about from day to day, sometimes up, sometimes down. But when you’re looking at paying the deposit on your dream house in France or needing to send funds to pay bills or for things like building work – the last thing you need is more stress and uncertainty, or shelling out more in costs. And that’s where a trustworthy foreign exchange money transfer company can really help you.

What are foreign currency money transfers all about?

Most of us don’t know the ins and outs of foreign exchange, but we do know that our bank usually charges commission or doesn’t pass on the best exchange rate available. Many of us don’t look for a different way to get a better rate because it might seem too much bother. But actually, nothing could be further from the truth. The whole system of foreign exchange has moved on leaps and bounds in recent years and makes it easy for clients to take advantage of the best market rates experts can provide.

Currencies Direct for instance, make setting up an account on line easy and quick. They have staff at the end of the line you can talk to – not just a chat bot. They’re happy to give advice. They have no hidden fees, zero transaction costs and secure the best exchange rate on your behalf. And they have an e-license which means they can securely hold funds with zero risk to clients. They have a level 1 credit rating (the highest you can get). 25 branches worldwide. Trade in 40 currencies and make up to 600,000 payments per year. They were also the first money transfer provider in Europe and have been around for decades.

Importantly, they can make payments that arrive in minutes – not days later. As anyone who’s ever needed to transfer money abroad knows, waiting for a payment to come through can be the sort of stress you just don’t need.

Currency exchange tips for French home buyers

When it comes to buying a property overseas there’s plenty of paperwork to complete and lots to consider. But one thing that you can save time, stress and money on is the transfer of funds. Not just for the deposit, but any mortgage payments and ongoing costs such as electricity and phone bills.

Transferring funds via currency exchange experts like Currencies Direct can save you a fair bit of money. They’re at the end of the phone to help with any questions and to give advice, and not just about money. Whether you’re at the stage where you’re considering which region is best for you, what your budget is, or ready to pay the deposit or balance – they’ll be happy to offer advice on your best options when it come to currency questions.

How does setting up a foreign exchange account work

First register for free – simply complete a quick and easy online form. Let Currencies Direct know what currency you need and where you want to send it and they’ll come straight back with a live rate. You confirm, they will book the payment and you send the funds to their segregated account and they will make the payment same day on all major currencies. Simple. Secure. Stress free.

You can also instruct to be notified when the market rate reaches a level that suits you, and then make your transfer. Make a one off payment or set up regular payments such as a mortgage. If your bank charges say £25 per transfer and you’re paying a mortgage 12 months a year, that’s £300 you could spend on something much more fun. And you’re probably not getting the best rate either. It doesn’t matter if you’re sending a large sum or small money transfer – why waste it when you can save money.

Currencies Direct help you manage your transfers and payments online with ease and securely.

The Good Life France uses Currencies Direct who specialise in overseas property purchases. Registration is easy and secure, plus there are no added fees. They save their customers thousands of pounds with their advantageous rates of exchange and guidance. You can speak to one of their experts over email or phone. Find out more about currency transfers here: currenciesdirect.com

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If you’re an American living in France, working or retired, you need to know how your expat status affects your participation in the U.S. social security program, as well as your taxes for social security income. We ask the experts at Sanderling Expat Advisors to explain how it all works for Americans in France – whether working or not.

France and the U.S. have come to an agreement concerning how you pay tax on your pension. They have signed a Totalization Agreement that prevents employers or workers from paying into both country’s mandatory retirement systems at the same time. Plus, in some circumstances, you can add credits earned in one system to those earned in the other system for the purposes of receiving social security or pension benefits on retirement.

Key points re Social Security for Americans in France

Retiring to France from the US

If you earned social security benefits in the U.S. and are already retired, you will get your social security benefits just as you would have in the U.S. As a French resident, you will pay French taxes on most income. However, there is an exemption for certain retirement and pension programs – this includes your social security income. So, you will be reporting social security income to both governments. But it is taxable in the U.S.

While social security benefits follow you outside of the U.S., Medicare program benefits generally do not. Expats considering a return to the U.S. should file to declare their eligibility, thereby reserving the premium rate. Your health care in France should be covered through the healthcare system available to all.

Working in France for a US employer

If your U.S. employer has sent you to France for 5 years or less or you work for the U.S. government – you remain a U.S. worker for social security purposes. Your employer will forward the payroll taxes deducted from your paycheck to the U.S. Social Security Administration (or Federal employee program). All of those taxes will be credited to your benefit earnings record in the U.S.

Working in France for a non-US employer

In the situation where you were hired in France, or have a non-U.S. employer, you are a French worker for benefit purposes. Your paycheck will be deducted for French cotisations and credited to your record in France.

Self-employed in France

If you normally  work in the US and you are working in France for 2 years or less, you will continue to be treated as a U.S. worker. This is the case for both social security taxes and benefits.

Worked in the US and France and now retiring in France

Let’s say you worked in the U.S., continued to work as an expat, and plan to retire in France. This is where things get really exciting. While the French pension system is not designed to make you wealthy, it can be a better deal than the U.S. social security system. Under current rules, if you work at least one year in the French system, your U.S. credits can later be credited to your French “account.”

When you do retire in France, the French government will calculate your benefit level based on French credits alone, compare that number to a prorated benefit based on U.S. and French credits, and pay you the larger amount.

If you would like advice on managing your finances in France as a US citizen, Sanderling Expat Advisors can help, contact them at: sanderlingexpat.com

The post U.S. Social Security taxes and benefits info for expats in France appeared first on The Good Life France.

For Americans who are expats in France (or anywhere), tax reporting requirements are something you don’t leave behind when you move to a new country. U.S filing requirements go with you – wherever you go. And not just that, there are additional tax reporting requirements known as FATCA and FBAR. We asked Douglas Soons and Amy Witherbee, the experts at Sanderling Expat Advisors who specialise in helping Americans in France to deal with their finance and taxation requirements to explain more…

What is the FATCA

FATCA means Foreign Account Tax Compliance Act. To summarise it’s an IRS requirement that you give notice of any financial assets you hold outside of the U.S. You’ll need to complete a form Form 8938 and submit it when you file your regular income tax return. This only applies to individuals, and you must file if you are living abroad and all of your foreign-held assets combined total more than $200k on the last day of the tax year OR more than $300k at any time during the year. If you’re filing jointly as a married couple that amount changes $400k and $600k. It also affects those living in the US with assets abroad.

What is the FBAR

FBAR means Foreign Bank and Financial Accounts. Yes, at first glance it can seem similar to the FATCA – but it’s not. This one is about money laundering, or rather the prevention of money laundering. And, even if you don’t meet the asset thresholds for the FBAR, you might be required to file an FBAR. Unlike the FBAR, you don’t file it with your tax return but file through a different system – BSA-E Filing system. Technically it must be filed by April, but the government gives everyone an automatic extension to October 15th. Once that is done, you file your U.S. returns, taking a credit for your French taxes by taking advantage of the other IRS automatic extension, this one for U.S. expats filing their regular U.S. returns.

If you’re already reporting everything on a FATCA consolidated reporting, you do not need to file an FBAR notice, too. If you’re not filing through the FACTA notice, and you had more than $10k at any time during the year combined across foreign accounts (including PayPal), or your listed as a signatory on someone else’s account, you need to file an FBAR. This applies not just to individuals but to corporations etc.

You’ll need to deal with foreign exchange rates, file on time, and keep on top of those filing requirements in order to avoid issues.

French tax for US expats in France

We haven’t even mentioned filing your French tax returns yet – but yes, that needs to be done too. Even if you receive income from the US – for instance fees, dividends, that too needs to be reported – in France. You won’t pay tax on all of it as the US and France have a double taxation treaty in place, and in fact you may even find that there are ways to mitigate tax.

If you’d like guidance and help with any aspect of finance and tax as Americans in France, whether filing for American taxes, French taxes, or both – feel free to get in touch with Sanderling Expat Advisors at: sanderlingexpat.com

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Nothing great ever came easy a wise person once said. And when it comes to being an American living in France, dealing with your tax, reporting requirements, and knowing how to manage finances to suit US IRS rules, is essential to making life great. Get it wrong, and you’ll sure know about it. Luckily there is help and plenty of support to make sure you get it right and live the good life in France that you planned.

Whatever stage you’re at – moving to, living in, or returning from France, you need to bear in mind “citizenship-based taxation” because if you’re an American, you must still file tax returns in the US. It doesn’t matter how long you’ve lived in France (or anywhere else), the IRS rules apply. And it’s not just about filing tax, you’re also restricted in the types of investments you can hold and that includes certain pension and life insurance vehicles. And some investment vehicles may seem like a great idea but may not provide the details the IRS require, making them unsuitable for Americas, for instance the Assurance Vie.

Add to that mix the complications of French financial systems and investment vehicles and says Amy Witherbee of Sanderling Expat Advisors “you have the makings of a mess. But it doesn’t need to be painful, as professional tax and investment advisors specialising in helping American expats in France with their finances, we will make sure that everything is sorted out, reports are filed correctly and all the paperwork is taken care of.”

Moving to France

If you’re at the stage where you’re considering moving to France, Sanderling Expat Advisors say this is an ideal time to get everything in order with your finances so that when you arrive, you know that’s one worry you don’t have on your plate. Instead you can focus your energies on creating the life you dreamed of.

“Before leaving the U.S. for France, we help by developing a list of documents the client will need to report assets, open accounts etc. in France,” says Douglas Soons of Sanderling Expat Advisors. “Crucially for us Americans, we also help clients make adjustments to their U.S. investment accounts before their new EU-based status makes certain holdings (i.e. mutual funds) become a tax problem. And again, there is a question of how the sale of a home, or investment assets might be treated before certain deadlines vs. others. For instance, if you know you are going to have capital gains on a home sale at closing, you want to be sure in advance that the timing of that sale gives you the benefit of a primary home tax break (before you move and make your primary home into a secondary one).

Likewise, if you will need to take money out of your U.S. investment account (i.e. to buy a property in France), you might want to do that sooner, rather than later, so that you are reporting that only on American tax returns.”

Living in France

Already living in France? It’s absolutely not too late to get things sorted out. Get help to create and manage the reporting requirements that you are by law required to undertake under US financial rules. We won’t go into too much detail here but just as an example – FBARs and FATCAs. Or to give them their full names – FATCA: Foreign Account Tax Compliance Act, basically an IRS requirement to provide details of financial assets held outside of the US. FBAR: Foreign Bank and Financial Accounts – like a FATCA but filed on a different system. If you’d like to read more about the requirements, who has to do this, how, what, where and when to file, read Sanderlings Expat Advisors FATCA and FBAR jargon-free explanation here.

And when it comes to filing returns in the French system, Sanderling Expat Advisors can also help you with that.

Moving back to the U.S. from France

As you can imagine, it’s not just a question of packing up your belongings, shipping them back and hopping on a plane. Sort out the financial requirements before you leave to help for a smooth move.

“Before returning to the U.S. we recommend people identify what reports, filings and taxes will be due to each country during the next 12 months. This helps us create a checklist of deadlines for the client and pull together what they will need to submit. But it also helps us determine whether the client is better off to close certain accounts, move assets, etc. before particular deadlines, i.e. the end of a tax year. Or if certain accounts, like the PEA, (a French investment vehicle) for instance, might need to stay in place a while longer to avoid punitive taxes.”

Find out more and book your consultation with one of the qualified cross border financial and tax advisers at Sanderling Expat Advisors: sanderlingexpat.com

The post Essential tax and finance guide for U.S. Expats in France appeared first on The Good Life France.

Succession law is probably one of the most contentious rules for the British moving to France, as it seemingly infringes on our right to leave our money to whoever we choose.  We asked Robert Kent at Kentingtons, the professional tax and financial advisors in France for British expats, to explain succession law and it’s potential problems.

What is succession law in France?

France uses Napoleonic law that ensures that the family is protected and that money from the parents should filter down to their children. Children are deemed “reserved heirs” and must inherit a percentage of their parent’s estate on their death. This law forms part of the French constitution, and these rules have significant importance and can be difficult to get around, although there are ways to do it.

Succession law is especially problematic for those with children from a former marriage, with the stepparent being left to battle with their stepchildren to hold onto the house and home.

What are the rules for inheritance for children in France

The amount of the estate to be left to the children is as follows:

1 child = one-half of the estate
2 children = two-thirds of the estate
3 children = or more three-quarters of the estate

The remaining fraction is unreserved and may be left to anyone the donor pleases.

To be clear, it is only that part of the deceased’s estate. So if the deceased owned half the property and there was one child, it would be half of the half, therefore only a quarter. This means that in many cases, it does not give the child control of the property – but it is their right to demand their share on any sale.

Can I choose who I leave my money to in France?

For those who want to choose where their money goes, there are solutions. However, there is some planning involved. Ideally this would be done before buying property in France, but it isn’t too late to do it afterwards.

It is usually possible to leave the surviving partner the right of use or “usufruit” of a property. The “usufruitier” can live in the property and make any alterations they wish. They may even rent out the property. However, on the sale of the property, the children will generally have the right to their share.

If this isn’t what you want, then beware that a little information can be a dangerous thing. Sometimes people copy each other’s solutions, but this doesn’t always work. Generally there is a different solution for every situation.

The worst thing you can do is nothing. The only safety net for those who do nothing is the “right of living and right of use.” This literally means you have the right to use the property. You have no rights to do anything to the property, or even rent it out, without the children’s agreement.

Can I avoid the law of succession issues

It is possible to reduce or even eliminate succession and inheritance law issues in many cases using either legal or investment techniques or a combination of the two.

This article provides a basic understanding of the French rules. However, there are regular changes in European legislation. As Europeans and UK nationals, you may have the option to simply opt-out of French inheritance rules and request that UK rules apply to your assets instead. This can be achieved by merely amending your French Will to reflect your wishes. This law (EU 650/201) was passed on 4th July 2012 and came into effect on 17th August 2015. However this being France, it isn’t always as cut and dried as this, for instance if one of more children are EU residents, this may impact the ruling.

It is vitally important to understand that this law does nothing at all to avoid inheritance tax in France. You still need to plan for “Inheritance tax” as Brussels IV deals only with success law. Brussels IV will not help you avoid French inheritance tax rates which can be up to 60%. And it’s no good looking up information on the internet or asking friends, to be absolutely certain in this highly complicated aspect of succession and tax, professional advice is the best way to make sure you plan effectively.

By Robert Kent is a senior partner at Kentingtons, experts in French succession law. Kentingtons offer a no-cost, no-obligation discussion about individual situations. See their website for details: kentingtons.com

The information on this page is intended only as an introduction only and is not designed to offer solutions or advice. Kentingtons can accept no responsibility whatsoever for losses incurred by acting on the information on this page.

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I always remember someone saying to me “I love France, but I have never spoken about dying quite so much as I do since I got here!” I knew just what they meant. Inheritance and succession law in France is complicated and is a frequent topic of conversation amongst expats. We asked Robert Kent at Kentingtons, the professional tax and financial advisors in France for British expats, to explain inheritance tax and the law known as Brussels IV…

Inheritance tax in France

Well, there are much more fun conversations so it’s a good idea to deal with the elephant in the room and move on. And talking about it with your friends doesn’t really help since everyone’s situation is different. So what is right for the person you are chatting with might not be a good solution for you. Their advice might lead you to disaster. I can tell you first hand, just how this can affect people’s lives after I helped the surviving spouse of a couple I served, with a very messy situation.

It can go very wrong

When we originally met, they stated that they had several children and their main objective was to protect the surviving spouse. They wanted their children to inherit their estate, but only when they had both finished with it. I suggested that they consider a change of marriage regime to communauté universelle (universal community) with a survival clause which would need to be discussed with a notaire, who would give legal guidance and draw up the contract.

A change to community meant that when one of them died, everything would automatically pass to the survivor, in full ownership, with nothing (yet) passing to their children, and with no accountability to them. Within a couple of weeks they sent me a copy of the act, confirming it had all been done.

The details are critical

Many years later, I was advised that sadly one of the couple had died.  But I was confident that all was well with their inheritance planning, or so I thought. Sadly, the couple had talked to friends about inheritance tax which led them to do something drastic without seeking professional advice or even informing their advisor (that would be me). They had been told by the friend that they should do a will using Brussels IV. The friend said it meant you can sidestep French succession law. This is true, but they interpreted it as treated under UK rules, meaning UK inheritance tax, in place of French inheritance tax – which is not the case.

Here is the big problem. They had instituted a marriage regime change which placed the joint assets into a community, which now was legally outside of the couple’s estate, leaving a UK will citing that UK law applied to the now empty estate.

If the marriage regime is universal, it usually covers the whole estate, though technically it is possible to exclude things. Normally assets are viewed as “biens propres” (cleanly owned). For the sake of sanity (I can see your eyes glazing over), let us say that everything is joint. As is common with marriage regimes, the contract said that it applied exclusively to “biens situés en France” (goods situated in France).

You can’t have it all ways

Generally speaking, UK assets that are not buildings, are treated as in France. This is  because the UK/France succession treaty states that only UK situated buildings are under UK rules, with the rest under French law. We now, however, have a conflict, because there is a UK will asking for UK law to apply, so how does that work? Spoiler alert, it does not! It’s a bit like buying two cars and then attempting to drive them both at the same time. It is simply not possible, since you can only sit in one car at a time. Had my clients left the marriage regime as the only solution, the only thing the survivor would need to provide to the notaire is a death certificate.

The technical legal reason for this is that the survivor is deemed to have always been the original owner, since they were part of the community and now there is only one person left, so it dissolves, assuming they are the full owner. The death certificate is merely to prove death, so the name can be removed, as there is no actual transfer of assets per se. My client was asked for a list of things covering several pages because the notaire needed to asses what was in the community, what was under UK law and needed evidence of each asset and value. It was a total mess. Had the client approached me or any suitable professional (one qualified and based in France) before doing a will under Brussels IV, they would have learned that they were better off as they were.

If they insisted on having Brussels IV, they should have redone their marriage regime, going back to separate estates to avoid any conflict. It can be done but it’s complicated – and expensive.

So when should I apply Brussels IV?

Brussels IV can be a good idea for some situations. If you have children from a former marriage, which makes a marriage regime change almost impossible, this can be a good option.  But every situation is different and every solution should reflect this.

You could of course go to law school and study French civil and fiscal law, UK inheritance law, Brussels IV (EU law), international tax treaties and the Hague Convention (international law). They make sure you have a good understanding as to how all these work together or conflict, so you can avoid any problems. You could take advice from someone who hasn’t done this but says they know how it all works. Or you could do nothing (this is a surprisingly popular option) and can leave a whole heap of problems for loved ones just when they don’t need them.

My advice? Get professional advice relevant to your situation.

By Robert Kent is a senior partner at Kentingtons, experts in French succession law. Kentingtons offer a no-cost, no-obligation discussion about individual situations. See their website for details: kentingtons.com

The post Guide to Inheritance tax for UK expats in France appeared first on The Good Life France.

If you’re a non-EU citizen and want to stay in France for longer than 90 days in a 180 day period you’ll need a visa. To begin you apply for a Visa Long Séjour (VLS-TS). Even If you want to live in France, you’ll need to apply for the one year VLS-TS. At the end of your first year, you’ll need to either renew your VLS-TS or apply for a Carte de Séjour (Titre de Séjour) which can be valid for up to ten years.

When you apply for your VLS-TS, you’ll need to gather several documents that show things such as proof of your economic situation (bank statements etc) and most importantly, private medical insurance (PHI). The general information on the france-visas.gouv.fr site is quite vague, especially for ‘tourist long-term visas’ – in other words, visas for retirees/early retirees or long-term travellers. If you want to stay in France for more than six months (and possibly request residency at a later date) then you’ll find more information on the TLS-contact website.

Tips for applying for a successful visa for France

One of the most common reasons for a refusal on a visa application is the insurance element. Fabien explains how to make sure your visa application is ‘French-administration-proof’…

Brexit didn’t just impact the British, when it comes to applying for a visa, it also resulted in a tightening of rules for other non-EU citizens, including those from the US. After years of experience as insurance brokers and hundreds of Visa applications, we know that the type of insurance certificate is a critical factor that will determine the fate of your application.

Most successful applications have the following elements in common:

• The certificate shows cover for at least the duration of your VISA and if this is not possible or if it ends before the VISA, then the certificate should mention that the visa insurance policy is scheduled for automatic renewal.
• It mentions that you’re covered for medical expenses and hospitalisation (not just hospitalisation).
• The medical cover should be for at least €30,000.00
• The certificate should not mention any medical exclusions.
• It must cover your public liability in the EU and include a repatriation plan.

If you fulfil these five requirements and if the rest of your file is complete, you should be off to a flying start with your visa application.

Get in touch with Fabien Pelissier, find out more and apply for insurance at fabfrenchinsurance.com

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Now is always a good time for checking your finances if you’re an expat in France. An annual tax check can really pay off.

There always seems to be something going on that can influence exchange rates, savings and financial plans. Covid, war, political instability, energy supply problems, global supply chain issues… There’s been a lot to contend with in recent years. As the economy evolves, so should your financial planning. Robert Kent of Kentingtons, tax and financial advisors, says that now more than ever expats need to think about what all these issues mean for them and, more importantly, what they can practically do about it….

If you spend in Euros, think in Euros

At Kentingtons we meet many people who think very much in the currency of their old home, such as Sterling. But, thinking in a currency that you do not live in can create risk. Brexit has shown us just how much Sterling can move versus the Euro. As a French resident, thinking in Euros does not merely reduce the currency exchange risk, it eliminates it. If you can eliminate unnecessary risk, why not do so?

“But my pensions / rental income (etc) are in Sterling!” you say. This does not prevent sensible planning, using FX companies to maximise currency moves, maintaining your savings and investments in Euros (which makes sense from a French tax perspective, by the way) and forward planning your income requirements.

If you have rental property outside of France / the Eurozone, challenge why this needs to be so. If it is purely an investment, you might be better off to consider selling and creating more Euro income.

Do you have pensions that could be cashed in? For many pensions this can be done, in France, with an effective tax rate of just 6.75%, so worth considering. Could any of your income be turned to Euro revenue?

My point is merely to prompt a rethink. What was the right course of action, when things were first done, may not be right for the way life is now.

Hope For the Best, Plan For the Worst

When it comes to income planning, it makes sense to hope for the best and plan for the worst. Good financial planning is not gambling, it is about creating as much certainty as possible. If you are living in Euros, then ensure you have sufficient Euros to see you through a crisis. A crisis could be in exchange rates, the financial markets, a slowdown in the rental markets, property prices etc. The point is to calculate how much income you might need for the next few years, ensuring that it is easily accessible and usable. A crisis, no matter what the source, should not cause you sleepless nights.

Consider Inflation

Don’t just consider what you need at today’s prices but build in inflation. In France we have seen it go to over 6% from almost nothing. The point is you just cannot guarantee what will happen. So, plan for higher inflation, which means planning on needing a rising income for the next few years, in the hope that you do not need it.

Rethink your investment Strategy

Interest rates at 0% mean that money is eroding in real terms, so a sensible investment strategy is key. Simply keeping it in the bank or under the mattress is unlikely to help. A traditional market investment strategy of 60% of your capital in the markets and 40% in bonds, is out of date. Bonds means that you may be paying them to keep your money (hopefully safely). It does not mean that they do not play a role, however, they have become less central. If you have buy-to-let properties, what happens when they are vacant and / or you need to sell when the market is bad? Property is not always ‘as safe as houses’!

With sensible financial planning, you stand a much better chance of withstand issues when they arise. And an annual tax check can save expats in France money and mean less stress.

Contact the team at Kentingtons for advice, or a free initial consultation at: kentingtons.com

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There’s a question that comes up time and again when it comes to insurance in France: car insurance for foreign registered vehicles. Fabien Pelissier of FAB French Insurance whose team specialise in helping English speakers in France with all their insurance requirements, explains the process of insuring a non-France registered car…

Car Insurance for foreign registered vehicles

Most people believe that you can’t have a foreign registered car insured in France, but this isn’t true. If you’re planning to move to France and register your foreign car – which is a legal requirement – then this can take time. And while you’re waiting – you will need insurance. So if you’re asking ‘can I register a a UK registered car in France’ – the answer is yes. But there are caveats.

We can insure foreign registered vehicles in the same way as we can for a French registered vehicles with a “standard” policy. This is based upon the assumption that you will register the car or bike in France. Failure to do so may open you up to consequences which can have long term effects in France where there is a central insurer’s database. Do not consider insuring the vehicle in France if the import project isn’t solid or might be reverted.

French car insurance – how no claims bonus works

Foreign insurance history, for instance ‘no claims bonus/’no claims discount’, can be converted into the French equivalent. This is called the CRM or the bonus. The conversion may look weird at first as France doesn’t work like the rest of the world (which may not surprise you).

The maximum discount in France is 13 years (50% bonus or CRM = 0.50). The “CRM” is like your own index. It starts at 1 and each year without a claim it’s multiplied by 0.95. A maximum discount reached when your CRM is at 0.50 (e.g. 13 years without a claim). Every claim deemed to be your fault will multiply your CRM by 1.2. It takes roughly 5 years to write off a claim in France.

Unlike other countries (for instance the UK), it’s not possible to “protect” your discount here. This is why French insurers will need to see your full history (proof of no claim) and not just the “insurer’s discount” or ‘no claims bonus’. They know a 9 years no claims bonus doesn’t mean you’ve been claim free for the past 9 years. That said they also don’t care about anything that happened more than 3 years ago. French insurers only look at the past 3 years of insurance. The upside of this is that you may have a 9 years NCD with claims 5 years ago which won’t be considered when you convert your NCD into a French CRM. French insurers require proof of no claims from the previous three years which can be onerous when you’ve changed insurers each year.

There is no off road status (SORN) in France

Another major difference is that French insurers really hate insurance gaps. The “off road” status doesn’t exist in France. You must be insured even if the vehicle is no longer in driving condition. A gap in your insurance record of more than 3 months is bad for your future premiums – and a gap of more than 6 months is most certainly going to be problematic.

One big difference with French car insurance is that it’s the vehicle that’s insured – not the driver.  You can allow anyone to drive your vehicle in France if you pay for increased excess which is not expensive.

Find out more and get a quote at: FAB French insurance

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