Thousands of Britons move to France every year, and millions more dream of
joining them, attracted by the warmer climate, rich culture and hugely
varied landscape. Countless films and novels have recorded the experiences
of the 200,000 British expatriates living across the Channel, from A Year
in Provence or A Year in the Merde. If you have decided to take
the plunge, either to retire or simply for a change of pace, here is our
guide to moving to France.
Organising your departure
Geographically speaking, moving to France is a relatively short distance, but
this does not make it any less daunting. Thankfully, there are hundreds of
websites, books and organisations that offer assistance. Getoutofhere.co.uk,
for example, explains the specifics of how long it will take to move your
stuff, how much it will cost and what you can do about your pets.
The website Expatica
is also extremely useful, with everything from housing
market information to tips on French
etiquette.
There are also numerous books on the subject from online retailers such as
Amazon.
Finding a home
The big decision is working out where
you would like to live. Are you looking for a Paris pied-a-terre,
a traditional
stone house by the Med or something
inbetween? Wherever you decide, there are thousands of websites
specialising in overseas property. Useful sites include France
Property Shop and Leapfrog
properties. British property websites such as Rightmove,
Prime
Location and Find
a Property also have overseas sections.
If you decide to use French estate agents, make sure that they are members of
a trade body, either FNAIM or SNPI.
Signing Contracts
The process of buying a property in France is slightly different to the UK and
can take longer - up to five months in some cases. To make sure that the
process goes smoothly and you do not lose money, it is essential to hire an
English-speaking solicitor. The
Law Society can supply lists of British firms with foreign-speaking
solicitors, or those with links to French firms.
Once you have found the property for you, and your offer has been accepted,
the next step is to sign a compromis
de vente, prepared by a notaire,
a government official who oversees the sale and purchase of property. When
this initial contract is signed by both parties the buyer pays a deposit of
10 per cent of the property's price. The property is then taken off the
market.
Conditions are included within the compromis, which render the contract void
if they are not met. The standard clauses
suspensive relates to the buyer's ability to get a mortgage, but you can
add others to the contract, focusing on your ability to obtain
planning permission to renovate the home, for example.
After the compromis de vente has been signed, there is a cooling off period -
mandatory under French law - of about seven days. Up to 25 per cent of
buyers walk away at this point. If you are still committed, searches can be
carried out on the house, finance can be organised and any checks made in
the following two months.
Finally, the acte de vente is signed in front of the notaire. At this point
the various taxes and fees associated with purchasing a house are paid by
the buyer.
You will need your passport and marriage or divorce papers when signing the
contracts. It is also worth booking a viewing of the property shortly before
you sign, as some contracts include a "sold as seen" clause.
Costs
You should expect to pay up to 12 per cent of your property's value in fees
and taxes.
Transfer taxes range from 6 per cent to 7.5 per cent, though this can be less
on new-build properties. The notary fees are paid by the buyer and can range
from 1 per cent to 5 per cent of the property's value. You can use this calculator
to work out the fee.
Stamp
duty is about 0.6 per cent, VAT on properties built in the past five
years is about 19 per cent and then there are land registry fees and estate
agency fees if you found the property through an agent.
You will need to open a French bank account to handle the various fees and
payments that you will need to make over the course of the buying process.
Mortgages and currency
If you need to borrow money to pay for your French home, rather than funding
it through the sale of your home in the UK, there are generally two options:
remortgage on the property you are keeping or take out a new mortgage on the
property that you intend to buy.
Remortgaging can be the easiest option, depending on your deal, but a number
of high street banks, such as Barclays
and HSBC, will provide
mortgages on foreign properties. Alternatively, you could use a broker, such
as Conti Financial Services,
which specialises in international loans.
You can obtain a mortgage in either sterling or euros. If you are planning on
renting out your property to cover the repayments, a euro mortgage would
mean that you would not have to transfer so much money between the two
currencies.
It is crucial that you use a specialist foreign exchange provider when
transferring large amounts between UK and French bank accounts. The rates
provided by banks or money transfer services tend to be uncompetitive.
Companies such as HiFX or Moneycorp usually provide much better rates.
Tax liabilities
If you are still earning money from activities in the UK while living abroad,
such as rental income from property, you could still be liable to income
tax on those earnings. It is worth contacting HM
Revenue & Customs to check your tax liabilities.
The French inheritance tax laws are very different to our own, so it is worth reading
up on your potential liabilities.
Pension
Your state pension entitlement is not affected should you decide to move
abroad before or during your retirement, provided that you inform the
pension service of your new details. If you move to France, your state
pension will be paid into your local bank account in euros. It is worth
calling the International
Pension Centre on 0191-218 7777.
If you are sent abroad by your employer, you can remain in your UK company
pension scheme for up to five years. Some experts recommend that you
continue to make national insurance contributions so that there are no large
gaps in your payment history, which could affect your pension entitiement.
Healthcare
The criteria for joining the French healthcare system have changed
recently. You may have to pay for private medical insurance for the
first five years of your stay if you are not working. However, the
conditions vary, particularly if you are in retirement. For details on your
benefits and healthcare rights, look on the Department
for Work and Pensions website.
Before leaving the UK
Before
you leave the UK you should contact both The
Pension Service for a state pension forecast and also HM
Revenue & Customs to ensure that you are not liable
to pay tax before you leave or while you are abroad. You should also
contact your GP and the Post
Office, to redirect any mail.
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