Katiestockwell Posted September 23, 2004 Share Posted September 23, 2004 Hi - we are looking to move to france in the near future. We are trying to work out if we can survive on my husband's teacher's pension, he has yet to receive his state pension. He receives about £1200 after tax. he currently pays £50 a month towards health benefit - we live in the channel islands.We have friends who currently live in france and have given us figures for the utilities which seem to be slighty more. We understand we would need to pay into the french medical system at 8% of our income. And also to pay the taxes on property which are a lot more than ours but obviously this depends on the size of the property.The tax situation seems very confusing as he is receiving a pension and I have seen information on this site about this being taxed where it was earned? Are there tax allowances and are we counted as a couple?We would not need to have a mortgage and have some savings.Does any one else survive on this?Any advice appreciated. Link to comment Share on other sites More sharing options...
Iceni Posted September 23, 2004 Share Posted September 23, 2004 Trawl the site and do your own research via websites and books but if he is getting that amount PER MONTH, he will be receiving more than some working French people earn a month so you should survive - but then I have no idea of your living standards.We seem to get by on very little and have a good life but our life would not be the way others want to live.Do your research and make your own decisions - just make sure it is the right one We will have no subsidised heat and light and free prescriptions and eye tests when we get to retirement but I would not go back to the UK if you paid me. Link to comment Share on other sites More sharing options...
Ad Posted September 23, 2004 Share Posted September 23, 2004 Hello, You can actually live very well on 1200 euros a month, depending on your lifestyle of course.where we live in the Correze it is quite cold in the winter, but over the year our electricity is 100 euros a month and thats cooking and water heating etc, we have a 5 bedroomed house, its not grand, just big, and we have electric heating, we laso have a woodburner in the lounge which uses about 500 euros of wood over the year, we keep it in all the time in the winter. Our water rates are about 150euros a year, and we water the garden, and our Tax Fonciere is 369 euros this year. You do pay some towards Social Security etc, but the allowances are high, we pay no tax, and the tax man completed our forms, tax is assessed after ss payments. My husband had heart surgery here, so pays nothing for all his pills, but we do pay towards other health problems.Other benefits are that we eat food in season, and most other food is produce of France, not a lot is imported, in our area anyway. Our house insurance is about a third of the equivalent in UK.Lots of other benefits accrue, such as lots of events are free, we seldom pay to park; car insurance is marginally cheaper. and certainly car service is a fraction of Uk costs.We live in a village and there is a constant stream of things to do, in fact we get quite blasè and say 'oh we'll go to that next year' .We have been here 2 years, and it still gets better.regards Aileen Link to comment Share on other sites More sharing options...
Katiestockwell Posted September 23, 2004 Author Share Posted September 23, 2004 This is in reference to Iceni's reply. Thanks for the advice about doing my own research but this is all part of the same thing as far as I am concerned. I am trying to research as many different avenues as possible to obtain information from a wide range of sources. We hope to attend a property fair soon but as we live in the Channel Islands, this is not easy and expensive for us. I have looked in books and on websites. I am a librarian so know about research, and books are not often the best way to get up-to-date information as are out of date as soon as they are published!Anyway thanks for the advice. Link to comment Share on other sites More sharing options...
Teamedup Posted September 23, 2004 Share Posted September 23, 2004 If you are from the Channel Islands then I seem to remeber that there have been posts about not having reciprocal health care. You need to look into this and see how the system will work for you. As was said, £1500 a month would be considered a rather good wage by plenty of people I know, so you should be able to live quite well on that, as long as your health care is not costing you an excessive amount. Link to comment Share on other sites More sharing options...
Russethouse Posted September 23, 2004 Share Posted September 23, 2004 From what I understand UK pensions for people such as teachers,policemen, civil servants etc have to be taxed at source, was your husband an UK employee or a CI one and if CI do you know if the rules are the same ? Link to comment Share on other sites More sharing options...
Alexis Posted September 23, 2004 Share Posted September 23, 2004 SMIC is what, 1000€ now? About £650 - before tax. Yes, people live on that but certainly, those with children are entiltled to something. No idea what though.It all depend on where you live as to your big outgoings, the taxe foncierre and taxe d'habitation. My taxe foncierre for here in Brittany is 93€ per annum. You can tell what a tip it is!! Sorry, my house, not Brittany. People further south can pay twenty times that. The same will apply for taxe d'habitation.Normally EDF, SAUR and telephone will be the same all over. Depends how much you use. Yes I know we decided we paid more for water than anywhere else but I don't count it as dear.Who told you that you pay 8% for medical cover? Is this true? It comes directly out of my wages and then I pay 30 odd euros per month for my mutuelle. I don't think my retired friends pay anything for cover other than their mutuelle but it could be taken as tax. I really don't know.Not a lot of use I'm afraid. Go for it though! Link to comment Share on other sites More sharing options...
Sprogster Posted September 24, 2004 Share Posted September 24, 2004 You don't say if your pension is paid in the Channel Islands.If so like all Channel Islanders there is a problem in the lack of double taxation agreements with France.Therefore, if your pension is Jersey or Guernsey sourced it will be subject to Jersey or Guernsey tax ,even if you have moved to France permanently.Then to add insult to injury as a resident of France you will be taxed on your worldwide income including your pension.However, unlike UK tax deducted on UK source income, you will not be able to offset the Jersey or Guernsey tax against the French tax liability,due to the absence of a Double Tax Treaty between the islands and France.Channel Islanders also appear to loose out under the new more favourable French Capital Gains Tax regime on house sales, as we are not EU residents. Therefore, we would be subject to the higher band rate of 33% rather than 16% a UK resident would incur on the gain made following the sale of a second home there.It actually gets worse as Channel Island residents being outside the EU can be assessed to tax by the French fisc on the deemed rental of their French second home,even if it is not let.! Thankfully,this seems to be rarely enforced.I am not a tax adviser so get proper advice BEFORE you move, because once you have it is usually too late.Good luck. Link to comment Share on other sites More sharing options...
Katiestockwell Posted September 24, 2004 Author Share Posted September 24, 2004 Thank you to everyone for the advice. Yes the pension is paid in the channel islands. He will get a part state pension from the UK when the time comes, but his main pension will be from Guernsey. I know the tax situation is difficult so I think we need to go and discuss the ins and outs with a tax adviser and see where we stand. If his pension is taxed twice and then we need to pay loads in health care, there won't be much left!Do you (Sprogster) come from the channel islands?Thanks and bye for nowKate Link to comment Share on other sites More sharing options...
Westoncromwell Posted September 24, 2004 Share Posted September 24, 2004 I found my property in the Corbieres by trawling through the internet and looking at all the local French estate agents.You soon get a 'feel' for prices and what you can afford in whichever area. The internet is such a cheap and efficient tool to enable you to get a short-list and nearly all the sites have lots of photos of the properties.Also with regard to finance I believe that you only pay the 'mutuelle contributions' once you have received the state retirement age as the national insurance contributions (French equivalent) no longer apply. best of luck Brian Link to comment Share on other sites More sharing options...
Westoncromwell Posted September 24, 2004 Share Posted September 24, 2004 Also with your fear of being taxed twice- that won't happen. You will get a 'tax credit' against any tax paid in Jersey or Guernsey on your tax assessment and I think you will find that taxes are less onerous in France e.g. for 50 to 60 year old retired you only pay tax on 50% of the actual pension amount less your personal tax allowance etc Brian Link to comment Share on other sites More sharing options...
LesLauriers Posted September 24, 2004 Share Posted September 24, 2004 Westoncromwell: "you only pay tax on 50 to 60% of your pension at age 50 to 60" am I right in thinking that you are talking about an annuity as opposed to a company pension. Link to comment Share on other sites More sharing options...
LesLauriers Posted September 24, 2004 Share Posted September 24, 2004 Also with regard to finance I believe that you only pay the 'mutuelle contributions' once you have received the state retirement age as the national insurance contributions (French equivalent) no longer apply.Don't really understand this statement, with French health cover a "mutuelle" is beneficial regardless of age. Link to comment Share on other sites More sharing options...
BJSLIV Posted September 24, 2004 Share Posted September 24, 2004 "You only pay the 'mutuelle contributions'...... "As opposed to pre retirement when you pay both contributions.....Eats shoots and leavesWho said punctuation etc doesn't matter. Link to comment Share on other sites More sharing options...
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