Legal and finance questions

[thosetwo]

Hello,

Three years ago when we first bought a property in France your members were incredibly helpful in answering our questions.Now as we attempt to make the final move across we're hoping someone knows about the following.

1)We are buying out our friends "half" of the house..is this a relatively straightforward visit to the notaire or do taxes etc rear their ugly heads?

2)Have been reading about the double tax treaty and specifically about disposing of a second UK property.In theory as the second property has been owned for 15 years plus its better (I think) to dispose of it when we are french residents.Any comments?

3)When do you offically become a french resident? IE after registerring with the local mayor etc or is there a specified time of habitation before you qualify?

4)We are thinking of utilising a deposit account as part of our future income.When we inquired at CA their standard rate was 2% but then mentioned 4.75% but we had to sign up to something for several years etc.The UK instant access accounts seem to be paying 5-5.5% (with the prospect of rates increasing).Does anyone use UK deposit accounts and then transfer or are there better rates than we've been quoted available in France.

5)Finally..we are always trying to improve our French but have noticed that our first impulse is to use English vowel or constantant sounds (ever tried spelling out an address or your name over the phone?).It occured to me that a child's video/dvd with the french alphabet on it might help us improve this area (Seasame Rue ?).Can anyone point us in the right direction? 

Sorry for the length of this message but any advice greatly appreciated.

Thanks

Thosetwo

[Nick Trollope]

[quote]Hello, Three years ago when we first bought a property in France your members were incredibly helpful in answering our questions.Now as we attempt to make the final move across we're hoping someone k...[/quote]

In absence of a reply from someone who knows better, I'll give it a go!

1)We are buying out our friends "half" of the house..is this a relatively straightforward visit to the notaire or do taxes etc rear their ugly heads?

You will need to use a Notaire (as all property transactions must be handled by one). There will be CGT implications. The Notaire will assist you.

2)Have been reading about the double tax treaty and specifically about disposing of a second UK property.In theory as the second property has been owned for 15 years plus its better (I think) to dispose of it when we are french residents.Any comments?

If this is a primary UK home, then dispose of it before you are French taxpayers (note, not resident..) as there is no CGT on UK homes, under UK tax rules (usually). If it is a second UK home, then sell it anyway, as the CGT is lower in the UK.

3)When do you offically become a french resident? IE after registerring with the local mayor etc or is there a specified time of habitation before you qualify?

The French tax authorities regard you as resident after you have completed a tax return (beginning of the calendar year). If you are earning money in France, then your become "tax resident" if you are here - or can't be anywhere else - for 181 days. Broadly speaking! The concept of "residency", as in "I am a UK citizen" is very muddled. You are unlikely to ever qualify to be a French Citizen, not least because you don't need to be.......

4)We are thinking of utilising a deposit account as part of our future income.When we inquired at CA their standard rate was 2% but then mentioned 4.75% but we had to sign up to something for several years etc.The UK instant access accounts seem to be paying 5-5.5% (with the prospect of rates increasing).Does anyone use UK deposit accounts and then transfer or are there better rates than we've been quoted available in France.

Deposit interest rates are better in the UK, but you will be at the mercy of exchange rates. Shop around, or try something like ING, which (IIRC) have Euro accounts at good rates. It also rather depends on what you want in terms of security, access, etc... If you have a spare 100,000, I'll look after it for you....

5)Finally..we are always trying to improve our French but have noticed that our first impulse is to use English vowel or constantant sounds (ever tried spelling out an address or your name over the phone?).It occured to me that a child's video/dvd with the french alphabet on it might help us improve this area (Seasame Rue ?).Can anyone point us in the right direction? 

There are hundreds of EDUCATIONAL DVD's/Video's & comics etc aimed at kids, available in every supermarket. We buy stacks of them for our 4 year-old. If you have the patience (which I don't!), you can learn by watching them....

IANAL!

HTH!

 

 

[thosetwo]

Hi,

Thanks for the reply.

Just for clarification though..

The CGT obviously would apply for the seller..I was wondering if there is a land registry/ any form of buyers tax (for want of a better word) involved in the purchase.

The property in England isnt main residence and the article I saw referred to no CGT in France if it was owned for at least 15 years.What I couldnt work out was if this was current agreement or the proposed one (supposedly in force from 2005).

The residency is only a concern in relation to the property/tax situation as above.

Thanks I'll have a look at ING, obviously am concerned that exchange rate and conversion fees may negate any apparent interest rate advantages.

Finally have been reading childrens books to try to improve our French.Local markets 1 euro a time! A benefit is the odd bits of background you pick up at the same time. Merchant de Sable and Gros Nounours anyone?.Have looked at the tapes but its difficult to sort the nursery/colourful type from the educational .

As mentioned what Im really looking for is an alphabet pronounciation guide.

Thanks again

Thosetwo

PS I saw in another topic about how hard/expensive it is to run a stall/van selling food..just wondered how our local market can support 4 crepe stalls?

[Patf]

Here is an alphabet pronunciation guide which I got from a french friend and keep at the back of the phone book: a=ah, b==bay, c=say, d=day, e=uh, f=ef, g=jay, h=ash, i=ee, j=jee, k=kah, l=el, m=em, n=en, o=oh, p=pay, q=koo, r=air,s=ess, t=tay, u=oo, v=vay, w=dooblevay, x=ex, y=ee-grek, z=zed. the sound for u is the french u, impossible to phoneticise. Pat.

[Quillan]

Patf accidently posted the same post 3 times so I have removed 2 of them (very useful post Pat).

Moderator

[coz]

Hello,

I think I've probably gone about this in the wrong way but I wanted to ask a question about Tontine and wasn't able to do so in that section. We are buying a small house near Bergerac and most english friends have suggested we apply for Tontine. It is to be a holiday home and our situation is relatively simple - only marriage, 2 children. The only complication is my husband has a child from a short relationship. Is Tontine right or indeed necessary for us? Obviously, each of us would like to continue using the house, in the event of the other's death.

Coz

[Clarkkent]

We are buying a small house near Bergerac and most english friends have suggested we apply for Tontine.

The best advice is to ask your notaire. The main consideration will be the value of the property. By the way, you don't apply for tontine, you simply include a brief statement - perhaps a single sentence - in the Acte de Vente. Its effect is to backdate the ownership of the house on the day you bought it into the hands of the survivor.

The only complication is my husband has a child from a short relationship. Is Tontine right or indeed necessary for us? Obviously, each of us would like to continue using the house, in the event of the other's death.

The situation is quite clear - on the death of the survivor ownership of the property will be divided among ALL the offspring of the original purchasers. In your case: 3 ways.