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What changes in France from January 2016

The start of the New Year in France brought in a flood of changes, including a complete reworking of France's map and the introduction of compulsory doggy bags in restaurants. Here's everything you need to know.

What changes in France from January 2016
"Doggy bags" in the kitchen of a restaurant in Lyon. Photo: AFP
A new French map
 
It's 2016 and France now has 13 regions – down from 22 – thanks to a major rework of the regional map.
 
The new map, pictured below, saw some regions like Brittany unchanged, but the fusion of two or even three regions in some other cases. The move is an effort to streamline regional councils and to run the country more efficiently.
 
The names of the new regions remain unannounced, and for the moment are just a combination of the names of the previous regions. 
 
If you want to see an interactive map detailing the changes, head over to this page on the official government website, or click here to read more about the new regions and their capitals
 
Paris gets bigger
 
January 1st sees the official launch of Grand Paris, or “La Métropole du Grand Paris” to give it its full name.
 
Essentially, the project means that the large Parisian suburbs of Hauts-de-Seine, Seine-Saint-Denis and Val-de-Marne – as well as a handful of smaller communes – will now become much closer integrated with the capital in the aim of inter-communal cooperation. 
 
Grand Paris will see over 200 councillors working together on everything from environmental issues to economic development. 
 
Increase in minimum wage
 
Those on minimum wage in France can expect an ever-so-slightly fatter wallet – with a six-euro increase per month. The minimum hourly wage is now €9.67 an hour, or €1,466.62 a month. 
 
Tampon tax drops
 
The tax on women's sanitary products has dropped from 20 percent to just 5.5 percent. This has been a hot topic in France, seeing protests from women's groups around the country who argued that tampons should be taxed like condoms, or food. 
 
The government initially opposed changing the rate, saying it would reduce tax receipts in 2016 by €55 million. 
 
Drop in gas prices
 
For the fourth consecutive month, France's gas prices have fallen, this time by an average of 2 percent. The prices have dropped by an average of over 10 percent since January last year.
 
Doggy bags introduced
 
Restaurants now officially need to provide doggy bags for customers who want to take their meal home. The law applies to any restaurant that serves over 180 meals per day.
 
It's a move by the government to cut down on the 7 million tonnes of food wasted in France each year – but it remains to be seen if the French will adopt this typically American custom. 
 
Get paid to cycle to work
 
Those who cycle to work are now eligible for a little extra pocket money, with a new plan rolled out to pay cyclists 25 cents for every kilometre they cycle between their home and their office. Payment is capped at €200 a year. There's more information here (in French)
 
Pay less taxes
 
France is set to get a simplified tax system this year which will see income tax (Impôt sur le revenu) taken automatically at source rather than the following year after the individual annual declarations.
 
It is estimated that 8 million people in France will pay less tax this year than they did in 2015, with new “one stop shops” opened around the country to make bill paying easier. 
 
Increase in bank fees
 
The average fee to have a bank account in France is set to be €16 this year, compared to €12 last year. 
 
January will see several jumps in these maintenance fees, notably at the Banque Postale, which will leap from €4.20 to €6.20. 
 
And even though there were no fees in recent years, January will see the implementation of new fees at BNP Paribas, Société Générale, and Caisse d'Epargne Ile-de-France – which will charge an annual €30, €24, and €15 per account. 

 
Extra “terrorism taxes” 
 
Those with home or car insurance will pay a bit more “terrorism tax” – meaning the total will jump from €3.30 to €4.30 from January on. 
 
This money will go towards helping the families of terror victims and those who have been injured in terror attacks. 

 
 

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Explained: France’s exit tax

Planning on leaving France? You may, depending on your circumstances, be charged the 'exit tax'.

Explained: France's exit tax

Like some other European countries, France does have an exit tax for those (French or foreign) who are leaving the country. It’s known by the English name l’Exit tax.

However, it won’t affect most people.

Only those who have been tax resident for a minimum six years of the 10 years immediately before they permanently move out of the country are liable to pay an exit tax – if, that is, they own property, titles or rights worth a minimum of €800,000, or that represent 50 percent of a company’s social profits.

If that affects you, the best advice is to seek expert individual financial advice before moving out of France for good. The relevant page on the French government’s impot.gouv.fr website says it is possible to defer payments, and some relief is available.

Because of the relatively high figures involved, this tax is irrelevant for most people. That said, however, you will still have to inform tax authorities that you are moving out of the country because you may still have income, property and capital gains taxes to pay.

Income tax

You must inform the tax office that you are moving and give them your new address so that your tax declarations can be transferred to your new address.

You are liable for tax on everything you earned in France prior to your departure as well as on any French earnings that are taxable in France under international tax treaties that you earned after your departure.

The year of your departure, you declare your previous year’s earnings as normal – declarations in spring 2024 are for earnings in 2023.

A year later, you will have to declare any earnings taxable in France from January 1st up to the date of your departure, and any French-sourced income taxable source until December 31st of the year of your departure.

If you continue to have any French-sourced income – such as from renting out a French property – you will have to declare that income annually, using the non-residents declaration form.

Property taxes

You will have property taxes to pay if you own a French property on January 1st of any given year – whether it is occupied or not. 

Property tax bills come out in the autumn, but they refer to the situation on January 1st of that year, so even if you sell your property you will usually have the pay a final property tax bill the following year.

Moreover, if you receive income from property in France or have rights related to that property (such as shared ownership or stock in property companies), as well as any additional revenue connected to the property, during the year you leave France, you will be required to pay taxes on these earnings.

If any property assets in France exceed €1.3 million on January 1st of a given year, you may also have to pay the wealth tax (IFI).

READ ALSO What is France’s wealth tax and who pays it?

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Capital gains tax 

If you sell your French property or share of a French property, you may be liable for capital gains tax at a rate of 19 percent. It will also be subject to social security contributions at the overall rate of 17.2 percent.

Capital gains tax varies depending on how long you have owned the property and whether it was a second home or your main residence.

READ ALSO How much capital gains tax will I have to pay if I sell my French property?

The good news is, if you move to another EU country, or any country that has a specific tax agreement with France, you may be exempt from capital gains tax for non-resident sellers on the sale of a property that was your principal residence in France.

If you move elsewhere, you may be able to claim exemption on capital gains tax up to €150,000. As always, you should seek expert financial advice.

Tell Social Security

Inform social security that you are leaving France permanently – and return your carte vitale if you have one. If you do not, you may be liable for any benefits you receive to which you are no longer entitled.

More mundane tasks involve informing utility and water companies, your internet provider, if you have one, the phone company, your insurance companies, banks – and La Poste, who will be able to forward your mail for up to 12 months, for a fee…

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