French equivalent of ISA's?

[oldgit72]

Does France have any savings schemes that are Tax exempt in the same way that ISA's are in the UK? If so, is there any information on the web (or does anyone know) regarding annual amounts that can be invested/withdrawn tax free?

 

Thanks

[Esperaza]

Only info. I have.

From CA website.

 Codevi : a tax free instant access deposit account for french tax payers. A maximum deposit of 4 600 euros per person is allowed (a couple can have an account each). Interest is calculated fortnightly (1st - 15th and 16th to the end of the month) and credited annually on the 31st December.

[Quillan]

Bank Populair do some as well however none of them get round paying CDS on the interest, nothing escapes CDS.

[chessfou]

There certainly are. The particular one that suits me is the PEA (Plan d'Epargne en Actions). It is (very roughly) equivalent to a maxi ISA (you can have either self-select or funds or, I suppose, managed - personally, I'm only interested in the self-select).

The overall is approximately:

- you can put in EUR 132,000 and you are permitted to do that however you like - over many years or all in one go at the beginning - it is simply a limit (on cash put in).

- you need to keep it going (and no withdrawals) for 5/8 years for it to be really worthwhile. 8 years means that all gains are tax-free (albeit they will be hit by 11% "Prélèvements sociaux") and you can make partial withdrawals without closing the PEA (from 5-8 years the same but you have to close it).

More details here:

http://www.edubourse.com/guide/fiche.php?idFiche=148

I think that all the banks have some sort of offer but if you want to follow the self-select route, then look at the main on-line brokers. I will be opening mine (ASAP - i.e. as soon as I become French resident) with Boursorama:

http://www.boursorama.com/

who hide their PEA info under a bushel at:

http://www.boursorama.com/patrimoine/guides/Placements/PAT48.html

[saddie]

la poste bank offers an epargne which is free from all fiscalities. You do not even have to put it on your tax return. Each person may have an account max 15300 € The interest rate is 2.25% not high but tax free.

[Benjamin]

Saddie

You can at least more than double that with all the " easy come, easy go " features of UK based savings accounts. You obviously then have to account to the French tax man. The French Assurance Vie savings products are OK if you don't need to be taking an income from your lump sum but if you do then you end up losing all of the tax free advantages.

Benjamin

[LesLauriers]

Quillan said: "none of them get around paying CDS (sic) on the interest, nothing escapes CDS."

There are no social charges on Livret A, Codevi or LEP.

Benjamin said: "if you do (take an income from an Assurance VIe) then you end up losing all of the tax free advantages."

The tax free advantages remain the same.

Tax advantageous savings in France:

Livret A, invest up to 15300€ per person at 2.25% interest.

Codevi, invest up to 4600€ per person at 2.25% interest.

LEP, invest up to 7700€ per person at 3.25% interest. Only available if your tax demand is less than 709€.

In all cases there is no tax or social charges to pay and they are excluded from your tax return so do not increase taxation on other income. The are all subject to ISF if applicable.

Assurance Vie: no limit on investment, 4 to 4.5% on capital safe investments, no limit on interest on stock market related investments. Capital growth is tax and social charge free until withdrawn. When withdrawn it is only the interest element that is subject to tax and social charges. For example your fund grows by 4.5% and you withdraw 20000€'s, in this case only 900€'s are subject to tax and social charges.

After 8 years you can withdraw 4600€'s per person each year, tax free and you can leave up to 152000€'s per beneficiary tax free, over and above your allowances. AV's are also subject to ISF if applicable.

PEA as posted earlier.

[saddie]

Benjamin,

I am sure that I will be corrected if wrong but you cannot open an English easy come etc account if you are domiciled in France. I assume the converse applies and you cannot open a French livret if you are domiciled in England so the question is specifically where you can get some sort of near equivelent to an ISA in France regarding the tax situation.

[LesLauriers]

[quote user="saddie"]

the question is specifically where you can get some sort of near equivelent to an ISA in France regarding the tax situation.

[/quote]

Cash Isa equivalent: Livret A, Codevi, Lep or Assurance Vie (capital safe) as above.

Share Isa equivalent: Assurance Vie or PEA.

[Benjamin]

Saddie

This thread seems to come around and go around on a regular basis but you could go " off shore ", legally, to get the  sort of rates I mention.

Les L

Thanks for the info. I need to do a little more homework, but I am sure you are right.

Benjamin

[RichardA]

Just to bring this thread to the fore again...

I'm reasonably au fait with PEA's and Assurance Vie now, although as I'm about to invest in one or both would appreciate tips as to who provides the best buys. As background, I'm looking to invest a lump sum and then a regular sum per month for the long term, with no need to draw income for 15-20 years, so I'd be looking to invest in equity "unit trusts".

Also, does anyone know how PEP's and PERP's fit into the schem of things??

Thanks, Richard

[Gastines]

Our UK building society sent us a reminder to top up our ISA's before the end of the UK tax year. As far as we were aware,if you are not a UK resident,you can't invest in them.and a French tax payer. Duly returned the form plus a few bob. 2 months later,"You can't invest in ISA's "!!!! Well as you advised us, we thought we'd make use of the offer.!! In the end we bought a block of Premium Bonds, which you can legally buy, and first draw got £500.tax free and thankyou very much. We took up one offer as advertised of 7%p.a.  sounded very good but they forget to tell you that there is a 1.1% management fee etc etc. If you've got a spare week to read the book of rules and can understand them, I suppose you should find all this out in the first place. Biscuit tin sounds favourite, no tax on that,YET.

Regards. B&B St.Malo.     ourinns.org

[LesLauriers]

[quote user="Gastines"]

Our UK building society sent us a reminder to top up our ISA's before the end of the UK tax year. As far as we were aware,if you are not a UK resident,you can't invest in them.and a French tax payer. Duly returned the form plus a few bob. 2 months later,"You can't invest in ISA's "!!!! Well as you advised us, we thought we'd make use of the offer.!! In the end we bought a block of Premium Bonds, which you can legally buy, and first draw got £500.tax free and thankyou very much. We took up one offer as advertised of 7%p.a.  sounded very good but they forget to tell you that there is a 1.1% management fee etc etc. If you've got a spare week to read the book of rules and can understand them, I suppose you should find all this out in the first place. Biscuit tin sounds favourite, no tax on that,YET.

Regards. B&B St.Malo.     ourinns.org

[/quote]

Premium Bond wins are taxable in France.