FRENCH SAVINGS 82SIMPLY EDITORS PROPERTY PICK

Business

Navigating around business here in France can be extremely daunting even without the added language barrier! However, Simply Business are here to help! Our resident business guru Tia Malcolm has a wealth of experience and knowledge which she shall be sharing with you each month as well as inviting various expert writers in the field of tax, accounting and much more.

Tia Malcolm discusses French savings system.

tia@simplylivingfrance.com

@simplylivingbusiness

@simplylivingfrance

Choosing the right savings account in France.

In France, there are quite a few savings account options (comptes d’épargné) you can choose from. If you are a resident in France, it is easy to open a savings account, all you need to do is book an appointment with your current account bank and discuss your needs with them.

Here are the two short-term savings accounts. Instant savings accounts or ‘comptes sur livret’ - these accounts do not come with set terms and you can deposit and withdraw money whenever you like. Unfortunately, these accounts do not have a particularly good interest rate, but they do offer other benefits, especially in regard to tax in France. A fixed-term account or ‘compte á termé’ often requires a minimum deposit amount, or the savings must be accumulated over a set period. These accounts tend not to be regulated, have high-interest rates, and do not have a maximum deposit amount. These accounts come with a setup fee and can cost you dearly if you choose to close them before the agreed end term.

When choosing a savings account in France, do not just consider the interest rates or terms; also consider the tax benefits. In France, like in many other countries, you are responsible for paying personal tax and social security contributions on your savings. However, as of January 2018, the tax that the bank deducts from your ‘Prélèvement Fiscal’ is a flat rate of 30% (17.2% social charges and 12.8% income tax). In addition, tax exemption is available on some of the lower-earning incomes. Still, no exemption is available on social charges.

France also offers government regulated savings accounts ‘livrets’ which are exempt from tax, so any interest earned on these accounts is exempt from tax and social charges. There is, however, a cap to the amount you can save in these accounts.

Here are the different savings accounts you can have

Livret A, LDD ‘Livret de développement Durable’ and LEP ‘Livret d’epargne Populaire’

Livret accounts are tax-free, governmentregulated accounts. The maximum deposit for these accounts is 22,950€ (Livret A), 12,000€ (LDD), and (7,700€) LEP. These accounts are exempt from social charges and tax, and you do not have to declare them on your income tax. With the LDD account, you are only allowed two of these per household. The LEP is for the low-income taxpayers and is limited to 7,700€, and you need to prove that you fall into this bracket.

Plan d’Epargne Logement (PEL)

This deposit account is also sometimes called ‘Compte Epargne Logement’ CEL and is generally used as a four-year savings plan for home improvements or mortgage deposits.

Plan d’Epargne en Actions (PEA)

This is a share dealing account with your bank, stockbroker, or other financial institute. Your finances are important and it can be a struggle to start off with, so I would highly recommend that you discuss your personal needs with a regulated bank or financial advisor.

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New feature on Instagram

I am really loving this new feature that they are testing and if you like it, Instagram are hoping to roll it out in the next six months. If you have it on the scroll feed, you will see a button that says home, follow and favourites. Now, we all know Instagram will fill your feed with suggestions on who it thinks you might want to follow, but with the new feature, you can declutter your feed to only show what you want to see and the people/ accounts you want to interact with.

Simply Editors Property Pick

This months editors picks come from Agence Newton and Stafi France

LA MANCHE Renovated Longere 6 Acres Land, €349,800 Réf : SG-3313-AGENCENEWTON LA MANCHE Character Mill House with Gite € 471,500 Réf : SG-2053-AGENCENEWTON

Sheelagh GORHAM Commercial agent

LA MANCHE With Numerous Outbuildings 22 Acres Near Coutances, €695,000 Simply Living France, Company Reg:- 13738420 Réf : SG-2197-AGENCENEWTON AGENCE NEWTON 7 Guenevin 56500 MORÉAC

Daniela Weiss email Daniela.weiss@safti.fr call +33 (0)6 43 57 83 73

Gorron (53120), Domfront en Poiraie (61700), Fougères (35300) et alentours

To be featured on our Editors Property Pick page contactus@simplylivingfrance.com When enquiring about the properties, please quote Simply Living France

Maison - 5 pièces - 162m² Larchamp - 53220, €162,000 Réf 647173 Maison - 3 pièces - 70m² Saulge - 86500, €70,000 Réf 654719

Maison - 5 pièces - 130m² Saint-Brice - 61700, €70,000 Simply Living France, Company Reg:- 13738420Réf 653636

Immeuble - 95m² Saint-Brice - 61700, €40,000 Réf 653661