If you’re planning to buy a home in France, you will no doubt have considered affordability, income and many other financial issues as part of your decision-making process. Whether it will be your main residence or a second home, there’s always plenty to consider in terms of running costs, renovations and affordability. What you may not have thought about in as much depth however, are long-term investment options to ensure that any income and savings you have are working as hard as possible for you. Planning tax efficient savings and investments for expats in France is an essential part of your move.
You may be unsure how to make certain that you are saving your money in the most tax-efficient form possible. What worked in your home country may not make the most sense in France, and you may well discover that there are investment options that you either weren’t aware of or don’t feel as though you fully understand due to difference in tax laws and the language barrier. Perhaps your main concern, having made the move to France or invested in a French property, is to ensure that your children or other beneficiaries will not be left with an excessive tax burden or administrative tangles when they inherit from you.
ABC Europe
Alexander Bates Campbell Europe Limited is a company of Independent Financial Advisers specialising in wealth preservation and management, tax, financial and succession planning for private clients and their families, throughout Europe. The company is a member of the Federation of European Independent Financial Advisers and company director, Richard Alexander, advises clients across Europe and the UK.
French expertise
Independent Financial Adviser, Jennie Poate, moved to France in 2008 with her family. Now a fluent French speaker, she offers specialist financial advice to ABC’s English-speaking clients who live, or have financial interests, in France. Jennie originally trained as a certified financial adviser in the UK, where she held various management positions with large banking institutions for many years. She has retrained since moving to France and is currently working to finish her UK chartered diploma.
Jennie says: “Living and working in France means I have a unique perspective on what France is really like as a home and means I’m well-placed to be able to advise clients. My areas of expertise are cross border inheritance planning, tax and investment advice.”
Financial reviews
Richard says, “moving to another country can be a daunting prospect. Often, we find that reviewing finances can be way down the list of priorities for our clients. It certainly comes below booking the removal van and making sure visa applications are submitted for most people. Reviewing your investments and what you want them to achieve for you can be vitally important however. Taking advice now can help you avoid making tax errors that could lead to nasty surprises later.”
ABC Europe work with clients to ensure that they have everything detailed, right down to values in various bank accounts and any pension ‘pots’ that may have been collected over the years. Advisers can then explain the different taxes you might come across in your new country and give estimates as to how much they might be. Recommendations may follow to move, change or close investments and pensions so that they fit into your new country.
“Sometimes, things like ISAs are a round peg in a square hole outside of the UK,” Richard adds. “They are almost always taxable overseas. We also consider pension planning as an important aspect of moving, regardless of whether you are retiring early or planning to work. In France, getting that right and making sure any state pension contributions are up to date, and will continue to remain so in the future, will certainly help you breathe easier in the future.
Wills and inheritance
Laws around inheritance and taxation of inherited wealth differ in France and the UK, this is an area that ABC Europe specialise in advising clients on. “Understanding the importance of different inheritance rules from country to country and making a will with this in mind will mean you can have peace of mind in the future too,” Richard says. “This gives you more control over your assets. Certainly, there are many planning tools that will ease the mind and having the right professional to guide you is really important. At ABC Europe, we are by your side every step of the way.”
French investment options
As you would expect there are many ways to save your money and invest your wealth in France. Some, like the standard savings account, will be very familiar to most people, whereas the Assurance Vie, for instance, may not be something you’ve come across. It’s an investment, but with additional tax benefits that are well worth exploring. You can have it in joint or sole names and it’s great for keeping control over funds during your lifetime before passing the remaining funds to loved ones.
Working with UK-Based financial advisers
If you already work with a financial adviser that you trust, you may not want to lose touch with them when you move overseas. In some circumstances, they may be able to continue to advise you when you visit the UK in future but, if they aren’t in a position to advise you on European laws and financial regulations, this is where ABC Europe can step in. By liaising directly with your UK-based financial advisers we can ensure we understand the history which in turn enables a smooth transition. That way you can move to France and still be confident of getting accurate advice from a trusted adviser who understands the past advice and helps to adapt to your new life.
Find out more
ABC Europe will work with you at a pace you are comfortable with and they ensure that all fees and charges are transparent so that you can be sure of the service you are paying for. “Most importantly,” Jennie adds, “we want to be by your side as you commence and continue your financial journey so that we can help you plan and adjust as you settle into your new life in France. For us, maintaining regular contact and building new relationships for the longer term is as important for us as it is for you.”
Contact Jennie Poate at jennie@abc-eu.com to find out more and arrange a consultation.
This communication is for informational purposes only based on our understanding of current legislation and practices which is subject to change and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
ABC-EU are members of Nexus Global (IFA Network). Nexus Global EU is a division of Blacktower Financial Management (Cyprus) Limited (BFMCL) and Blacktower Insurance Agents & Advisors Ltd (BIAAL). ABC-EU is an Appointed Representative of BFMCL which is licensed and regulated by the Cyprus Securities & Exchange Commission (CySEC) – Licence No. 386/20. ABC-EU is an Appointed Representative of BIAAL which is licensed and regulated by the Insurance Companies Control Service (ICCS) – Licence No. 5101
