Banks & Finances France

In France, there are several banks offering favorable terms for foreigners:

 

BNP Paribas: offers current accounts, savings accounts (e.g., Livret A, which is tax-free and has a high interest rate), and international accounts; provides loans and insurance products; the account opening process is simple, with no high income required.

 

Société Générale: offers standard current and savings accounts with low fees; provides special terms for students and young people up to 29 years old.

 

Crédit Agricole: offers various service packages, including special accounts for foreign clients and youth; known for low fees and a variety of financial products.

 

Banque Populaire: provides a wide range of products and services for individuals, small businesses, and professionals; offers Livret A accounts, popular among foreign clients due to favorable terms and low fees.

 

HSBC France: offers a wide range of services, including current accounts, international accounts, credit cards, and wealth management solutions; HSBC Hexagone, the bank’s French subsidiary, provides international accounts that can be maintained in your home currency, simplifying financial operations for expats.

 

La Banque Postale: offers simple and affordable banking products specifically designed for clients with a low credit history; provides English-language services.

 

Boursorama: known for its convenient online platform and competitive interest rates; offers free account opening and low service fees, making it an excellent option for digital nomads and those who prefer online banking.

Choosing a bank: You can choose from major traditional banks or online banks. Make sure the selected bank offers services in English, if necessary.

 

Making an appointment: Most banks require prior appointment bookings to open an account. You can do this online or visit the bank branch in person.

 

Preparing documents: Ensure all necessary documents are ready and translated into French, if required.

 

Required Documents

 

Identity document: Passport or national ID card for EU citizens.

 

Proof of address: This could be a recent utility bill, rental contract, or a residence certificate from the local town hall. Documents must be dated no later than three months ago.

 

Legal residence documents: For non-EU citizens: visa or residence permit.

 

Proof of employment or study: Banks may require you to provide an employment contract, student ID, or another document confirming your status.

 

Proof of income: These could be recent bank statements, tax notices, or salary slips.

 

You will also need a French phone number.

 

Account opening features for non-residents

For non-residents, opening an account may involve additional requirements and higher fees. Such accounts usually do not provide overdrafts and credit card services. It's recommended to clarify specific requirements with the bank, as they may vary.

 

Helpful tips

Official refusal: If a bank refuses you an account opening, you have the right to request a written refusal and contact the local Banque de France branch with this letter, your ID, and proof of address to ensure your right to open an account.

In France, it is easy to withdraw cash with a foreign bank card using ATMs: ATMs are located in major cities, shopping centers, and near bank branches. Major banks such as BNP Paribas, Société Générale, Crédit Agricole, and La Banque Postale have an extensive network of ATMs.

 

Insert card and select language: Most ATMs will automatically offer a language selection after inserting the card. If not, look for the "Langue" button to change the language to English.

 

Enter the PIN code and select the type of transaction: Enter your PIN code. Be cautious and cover the keypad with your hand. Select the "Retrait" (cash withdrawal) operation and specify the amount.

 

Transaction completion: Retrieve your card, cash, and receipt. Some ATMs return the card before dispensing cash, so don't forget to take your card.

 

Fees and limits

 

ATM fees: French banks typically do not charge additional fees for withdrawing cash with foreign cards. However, banks in your country may charge a fee for international transactions, which may be a fixed amount or a percentage of the withdrawn sum.

Avoid using independent operator ATMs (e.g., Euronet), as they may charge higher fees.

 

Cash withdrawal limits: Withdrawal limits may vary depending on the bank and card type, but typically range from 300 to 1000 euros per day. Check your bank's limits before your trip.

 

Currency fees: Opt for withdrawals in euros rather than your home currency to avoid unfavorable exchange rates. Some ATMs offer a choice of transaction currency; always choose euros.

 

Recommendations and advice

 

Notify your bank about your trip: Inform your bank about your trip to avoid card blocking due to suspicious transactions abroad.

Use a debit card: Cash withdrawals with a credit card usually cost more, as they are considered a cash advance and may include higher fees and interest.

Inspect ATMs for security: Always check an ATM for signs of tampering or foreign devices. Use ATMs in secure locations and avoid using them at night.

Bank transfer

A bank transfer through a traditional bank is one of the most reliable ways to send money abroad. You will need:

- Recipient's details: name, surname, address, account number (IBAN), and bank code (BIC).

- Personal details: identification and your bank account for the transfer.

 

Online services

Wise: allows you to send money with low fees and at real exchange rates. You will need to register an account, enter the recipient's details, and pay for the transfer via bank transfer, debit, or credit card.

 

Western Union: offers transfers online, through a mobile app, or at agent locations. You will need the recipient's details such as name, surname, country, and in some cases, address and phone number. Payment can be made in cash, by card, or by bank transfer. The recipient can collect the money in cash or have it sent to their bank account.

 

Remitly: specializes in fast international transfers. You can send money via bank transfer, debit, or credit card; offers various ways to receive money, including a bank account, cash, or mobile wallet.

 

Revolut: offers international transfers using a mobile app. You can send money to over 140 countries at favorable rates. Payment is made from your Revolut account or card.

 

N26: a mobile bank that allows you to send money abroad through its app. The app is user-friendly and offers competitive exchange rates.

 

Important tips

Check exchange rates: Some services may include a markup on the currency exchange rate, so it's important to compare several options.

Notify your bank about the transfer: Inform your bank about the planned international transfer to avoid transaction blocking due to suspected fraud.

Security: Use only reliable and verified services for international transfers.

Yes, foreigners can obtain a loan or mortgage in France. However, the process can be extremely complex and requires the submission of a large number of documents.

 

Conditions for obtaining a mortgage for foreigners

 

Percentage of property value:

Foreigners can obtain a mortgage for up to 70-85% of the property's value, depending on residency status. For non-residents, especially those not from EU countries, this percentage may be reduced to 50%.

 

Initial Deposit:

For EU residents, the initial deposit can be 15-30%. For non-residents and citizens of countries outside the EU, the deposit can be increased to 50% or more.

 

Required Documents:

- Passport.

- Proof of income (salary statements, tax returns).

- Bank statements for the last three months.

- Purchase agreement or preliminary contract.

- Employment certificates and contracts.

- Additional documents proving assets and liabilities.

 

Insurance:

It is mandatory to have life and health insurance, as well as property insurance.

 

Application Submission: The application is submitted to the bank along with the required documents. The bank assesses the applicant's financial standing and checks that the sum of all debts does not exceed 35% of the total family income.

Approval and Completion of the Deal: The approval process can take from several weeks to several months. After approval, you receive a mortgage offer which must be accepted within a certain period (usually up to 10 days). After signing the contract, the money is transferred to the notary's account, who completes the property purchase transaction.

 

Using a mortgage broker can significantly simplify the process, especially if you are not a resident and do not speak French. A broker will help find the best conditions and gather all the necessary documents.

Real Estate Purchase

 

Bank Transfer:

The most common method of paying for real estate. Funds are transferred from your bank to the seller's bank. Don't forget to consider fees for international transfers and exchange rate differences.

Before transferring funds, it is important to get mortgage approval if you plan to finance the purchase.

 

Using International Money Transfer Services:

Specialized services like Wise or OFX offer more favorable exchange rates and lower fees compared to traditional banks. These services allow quick and secure transfers of large sums.

 

Multi-currency Bank Account:

Multi-currency accounts allow you to manage funds in different currencies, which can significantly save on fees and exchange rates when transferring. Wise and Revolut offer such services.

 

Payment through a Notary:

The full transaction amount is transferred to the notary's account, who handles the documentation and registration of property rights. This method ensures the safety of the transaction and compliance with all legal formalities.

 

Car Purchase

 

Cash Payment:

Some sellers accept cash payments, but this is rarely used for large sums due to risks and restrictions on the amount of cash that can be legally moved.

 

Bank Transfer:

The most secure and common method of payment. Funds are transferred directly from the buyer's account to the seller's account. Banks may charge fees for such operations, especially if the account is overseas.

 

Financing through a Bank:

French banks offer various loan programs for car purchases. You can choose between a personal loan, car loan, or leasing.

 

Financing through a Car Dealership:

Many car dealerships offer favorable financing conditions for purchasing a car. This can be a loan or lease with included maintenance and insurance services. Conditions vary depending on the dealership and the car model.

In France, there are numerous opportunities for saving, investing, and accumulating funds. Here are the main ones:

 

Savings Accounts

 

Livret A: One of the most popular savings accounts in France with a maximum deposit limit of 22,950 euros. The interest rate is about 3%, and the interest is tax-free.

 

LDDS (Livret de Développement Durable et Solidaire): Similar to Livret A but has a maximum deposit limit of 12,000 euros. The interest rate is also about 3%, and the interest is tax-free.

 

LEP (Livret d’Épargne Populaire): Intended for low-income families, with a maximum deposit limit of 7,700 euros per person. The interest rate is about 6.1%, and the interest is tax-free.

 

Plan d’Epargne Logement (PEL): An account for saving towards the purchase of property or renovation. Interest is tax-exempt for the first four years if funds are used as intended.

 

Investment Opportunities

 

PEA (Plan d’Épargne en Actions): Allows investment in European company shares with tax benefits. If funds are held for five years, profits are exempt from income tax but subject to social contributions at a rate of 17.2%.

 

Assurance Vie: A flexible investment structure that allows investing in stocks, bonds, and funds. It provides significant tax advantages and the ability to inherit capital without capital gains tax. There are no contribution limits.

 

Savings and investment accounts through online banks and platforms: Online platforms such as Wise, Trade Republic, and Lightyear offer high interest rates and flexible terms for savings and investments. Interest rates may vary, for example, Wise offers 3.66%, and Trade Republic offers 3.75%.

Foreigners residing or earning income in France face various tax obligations depending on their resident or non-resident status.

 

A foreigner is considered a tax resident of France if any of the following conditions are met:

Residence: The primary or permanent residence is located in France.

Professional activity: The work is conducted in France (except when the work is secondary).

Center of economic interests: The main financial interests and income are located in France.

 

Tax obligations for residents

If a foreigner is a tax resident of France, they are required to declare and pay taxes on all their worldwide income. The main types of taxes include:

 

Income Tax: Income tax in France is progressive, with rates ranging from 0% to 45% depending on the amount of income.

Additional taxes may apply to incomes exceeding certain thresholds (for example, 3% for singles with income over 250,000 euros).

 

Capital gains tax: Capital gains are taxed at a rate of 30% for securities and 34.5% for real estate.

 

Property tax: Wealth tax applies to property valued over 1.3 million euros, with rates from 0.5% to 1.5%.

 

Inheritance and gift tax: Tax rates depend on the degree of kinship and the value of the property.

 

Social contributions: Social security contributions are 17.2% of income, including capital gains.

 

Tax obligations for non-residents

 

Non-residents are taxed only on income earned in France. The main taxes include:

 

Income Tax: Non-residents pay tax at a rate of 20% on income up to 27,519 euros and 30% on income above this amount.

 

Capital gains tax: Capital gains from the sale of French real estate and securities are taxed at the same rates as for residents.

 

Property tax: Property tax for non-residents applies only to property located in France.

 

Double Taxation

France has double taxation avoidance agreements with more than 100 countries. These agreements help to avoid double taxation of income earned in different countries and provide tax benefits for residents and non-residents.

In France, all foreigners, both residents and non-residents, are obliged to declare their income and pay taxes based on the source of income and residence status. Here are the main aspects of tax declaring for foreigners:

 

Tax obligations for residents

Tax residents of France must declare and pay taxes on their worldwide income. The main types of income subject to declaration include:

Salaries and pensions: Including income received from French or foreign employers.

Rental income: Taxed, regardless of the location of the property.

Financial income: Interest, dividends, and capital gains.

Self-employment and business: Income from commercial or professional activities.

 

Tax Obligations for Non-Residents

Non-residents are taxed only on income earned in France. This may include:

Income from renting French property.

Salaries from French employers.

Financial income and capital gains from French sources.

 

Tax Declaration Process

 

Required Documents:

Income confirmation: payslips, pension statements, proof of rental and investment income.

Expenditure confirmation: documents supporting eligibility for tax deductions (e.g., mortgage interest, alimony).

Information on overseas bank accounts and investments.

 

Form Selection:

- Main form for income declaration — Form 2042.

- For foreign income — Form 2047.

- For property rental — Form 2044.

- For foreign bank accounts and life insurance policies — Form 3916.

 

Preparation and Submission of the Declaration:

Online declaration through the official portal of the French tax service (Impots.gouv.fr) offers many advantages, including extended submission deadlines and the ability to make corrections.

Paper declaration is used if there is no internet access or for the first-time declaration.

 

Submission Deadlines:

The deadlines for submission vary depending on the region of residence and usually fall at the end of May to early June.

Online declarations have more flexible deadlines than paper forms.

In France, there are many opportunities for self-employed individuals and freelancers. The country offers flexible registration conditions, tax benefits, and social security for this category of workers.

 

Registration and Legal Status

 

Micro-enterprise: the simplest form for starting freelance activities in France; characterized by a simplified tax system and minimal administrative requirements.

 

Required documents for registration: Passport or ID, proof of professional qualification (diplomas, certificates), professional liability insurance, proof of sufficient income, and a certificate of no criminal record. All documents must be translated into French and legalized.

 

Taxation

 

Tax regime for micro-enterprises:

Micro-BIC (for commercial sales): Maximum annual turnover - €188,700. The tax credit is 71%, meaning the taxable base is 29% of the total turnover.

Micro-BNC (for professional services): Maximum annual turnover - €91,900. The tax credit is 34%, taxable base - 66% of income.

 

Social Contributions:

Self-employed individuals must contribute to the social security system. The contribution rate depends on the type of activity and ranges from 13.8% to 24.2% of turnover.

 

Other Taxes:

CFE (property tax for businesses): Applied to net income over €5,000 and varies depending on income and municipality.

CFP (contribution for professional training): 0.1% of income for sales, 0.2% for private services, and 0.3% for trading.

 

Benefits and Advantages

 

Tax benefits: Self-employed individuals can take advantage of various tax credits and deductions, including deductions for professional expenses if they are registered in the standard tax system.

 

Simplified reporting: Micro-enterprises are required to declare their income monthly or quarterly through the URSSAF portal and can pay taxes online.