Confused about taxes!

[Jo Smith]

 

There seems to be an awful lot of taxes in France and I am a bit confused.  There is income tax, what percentage is this for the average earner?  I have also read about social security and health insurance but have conflicting answers.  Approx what percentage of your wage goes to cover all of the above, can anyone shed some light on this?

I have also read that nobody is refused health insurance because of an existing problem, is this correct?  Do you pay higher premiums if this is the case?  Do you need a medical to get cover?

My daughter suffers from ezcema, asthma and hayfever and my son from arthritis.  Would she be covered under our health insurance or do you pay for children as well, and if so at a higher cost if they suffer from the above?

A lot of questions, but each book I read contradicts the previous one and I don't seem to be getting anywhere.

Grateful for any info

Jo 

[Teamedup]

Depends on if you are self employed or employed. An employee usually pays about 28% of their salary in stoppages excluding income tax. Income tax averages around 8-10%. Well that is how it is for us anyway.

I have no idea as to how much mutualist health care would cost you. Some employers help with this cover. You would obviously require family cover. Also, you get what you pay for if you are doing this yourself and 100% doesn't cover much here.

[Babnik]

We've found mutualist cover to be very good, and it covers existing conditions also. Be careful though as some companies have a period of 9 months (don't know if this has anything to do with babies) where you are basically not covered. This is to stop people from hoping from one mutalist to another I guess.

[Teamedup]

Yes pregnancy is not necessarily covered initially by mutualists. And some have a three month period when you join before you can get reimbursed by them.

[Boris520]

Hi,

you don't mention whether you are retired, or intend to work, so I assume that you are going to register for work. There are 3 main social charges ( cotisations) you will have to pay, which are healthcare, retirement & family , plus income tax. If you are employed, your employer also has to pay contributions for you as well.

If self employed, you would usually register through the Chambre de Metiers or Chambre de Commerce, depending on your type of business. I have registered as an artisan with the chambre de metiers & attended a compulsory 5 day course, which explained the system in great detail. You can attend the course before registering your business, & I would definately advise this before deciding what tax regime to register under. Mine cost 170 euro ,but definately worth it, & remember that you have to start paying cotisations from the day you register your business, not register for the course!

Social charges are a lot higher than the uk, & in the case of artisan type work, are at a set amount for the first & second years, with third year based on the first year's actual earnings, & so on.( can't comment on whether this is the same in other types of work.

Healthcare contributions do not cover 100% , but you can take an optional private "top up " insurance. I have heard that previous history is not taken into account & that there is no medical required.

We asked about the tax rate, but the taxman told us that each case is different, with various allowances, & tax on net profit on a sliding scale, so can't help there, I'm afraid, but I believe it to be less than uk.

Also , if your work is allied to the building trade, you will have to have public liability insurance, & also the insurance for the 10 year guarantee.

I hope I have not painted too black a picture, as I don't intend to, & it is a good feeling (at the moment) once you have done it.

Good Luck,

Richard.