P Posted June 10, 2005 Share Posted June 10, 2005 Hi. we are currently exploring relocating to France when we take early retirement in under 2 years time. In order to live we will have income from my pension and also from interest on capital. Having tried to find information on rates and taxation and drawing a virtual blank we hope that one of you can help.We are looking to place the capital in a safe investment, i.e. no shares etc. Here in the UK some very good rates can be had in instant access accounts and we would be seeking to do the same if we move to France.What sort of interest is paid, currently, on these types of accounts in France and how does taxation affect them.Thanks in advance Link to comment Share on other sites More sharing options...
Mutts Posted June 11, 2005 Share Posted June 11, 2005 "Taxation in France 2005 - A Foreign Perspective" by Charles Parkinson is supposed to be good and I'm hoping to read and understand it during my holiday this summer. There is a full page listing income arising from different sources, followed by three columns specifying rates for Income Tax; CSG/CRDS; and Other! There are a number of tax-efficient investments (French based). A non-incoming producing trust is an option where the administrative costs of any such trust is lower than the likely tax on income.I understand that the most important tax return is the first, and will be looking for a qualified tax accountant. Link to comment Share on other sites More sharing options...
LesLauriers Posted June 11, 2005 Share Posted June 11, 2005 All unearned income is subject to social charges of 11% plus income tax at the appropriate rate. If neither of you are in receipt of the state pension, health charges at 8% on income (after allowances) over 6849€ will apply after your E106 expires.Rates are lower here and around 3% is obtainable. For a safe investment consider "Funds in Euros", capital safe, paying 4 to 4.6%, in a tax and inheritance advantageous "Assurance Vie" wrapper.The PKF book is about the best I have found, in the meantime a number of your questions can be answered here http://www.frenchentree.com/fe-finance/ Link to comment Share on other sites More sharing options...
P Posted June 13, 2005 Author Share Posted June 13, 2005 Thanks for the replies, obviously need to carry out some more research on this.Have started a little of it - is it that I am used to the British system or is the French system very difficult to understand? Link to comment Share on other sites More sharing options...
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