Health cover, what about this scenario?

[Sarajane]

I'm trying to get my head around health cover in France and would appreciate some help, I know you need an appropriate E form and top up insurance but I'm not sure exactly what to do in our case.

We will be moving to France to live permanently in the next few months. We will not be working in France and we are well below normal retirement age (we will be living off savings and investments). I have not worked for over 3 years so have not paid any NI in that time but my other half has paid NI in the last 2 years.

All help and advice appreciated.

[Wicce]

Sarah, Hi. You do not say if you are married...if you are you both need to apply to the D.S.S. Head Office at Newcastle - local D.S.S. office should be able to give you address - to see if either of you is eligible for a Form 106. If only one of you is eligible, the other should be able to obtain cover as a dependent spouse. This form will tell you how long you can expect to receive cover from the U.K.; after that time you will have to decide how you want to deal with health cover in France. There are several options, and you will need to consider carefully. Deal with that step when you come to it.

Mary

[LesLauriers]

Phone the DWP in Newcastle on 0191 218 7777 to discover your husbands eligiblity for an E106, this could provide the basic cover for the first two years, however an insurance policy with a Mutuelle would be required if you require full cover.

After the expiry of your E106 you will pay 8% of your taxable income over 6721 for the basic cover.

You state that you intend to live off of savings and investment income, with this in mind you should be aware that any savings interest will attract social charges of 10% in addition to income tax and that ISA's and Pep's are not recognised here so any income received will attract social charges as well as income tax. Sales of shares over 15000 a year will also attract these charges regardless of profit! That is to say that the sale of 15001 worth of shares on which you have made a loss will be subject to social charges and income tax on the whole 15001!

There are ways to reduce the charges on investment income including the use of French tax free savings accounts which pay 2.25% currently, however to maximise your cash you should seek independent financial advice and in particular you should enquire about the suitability of an "Assurance Vie" wrapper for your investments prior to becoming French resident.

Remember also that you become French resident on the day of arrival when you intend to live permanently in France.

Always seek professional financial advice.