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PROPERTY IN FRANCE

PROPERTY

The areas of France the Brits do and don’t go

With the euro wobbling against the pound, Brits are once again lining up to buy property in France. But they are not willing to head anywhere in "La France profonde", and there remain some no-go zones for British expats.

The areas of France the Brits do and don't go
Certain parts of France are pretty much ignored by British expats. Photo: AFP

The British dream of selling up and moving to France is still very much a reality for thousands of property buyers and even more so with the current exchange rate.

But they are picky, it seems, when it comes to where in “la belle France” they want to move to.

Stats released to The Local from France’s National Statistics Agency INSEE showed that British expats, of which there are almost 160,000 in total, continue to congregate in certain parts of the country and almost ignore others completely.

According to the most recent available stats the most popular region of France for Britons is the Ile-de-France region – which includes the capital Paris – where 21,000 of them reside.

After the French capital the most popular regions for Brits are Poitou-Charentes in the west of of France where the 16,300 Britons make up 33 percent of the overall population of foreign residents there.

Next most popular is Aquitaine (16,100) in the south west, which includes the famous “Dordogneshire”, and neighbouring region Midi-Pyrénnées (15,800).

There are 13,500 Brits living in Brittany and a similar number living in Rhône Alps, in the south east which covers the country’s main ski resorts.

There are almost 12,000 Brits living in Provence, all of whom have probably read Peter Mayle's best selling book “A Year in Provence”.

But the statistics also reveal that Britons have little or no desire to move to certain parts of France, notably the north east, but also the place better known as the Island of Beauty.

The Mediterranean Island of Corsica is only home to around 200 Brits, while back on the mainland Champagne-Ardenne and Franche-Comté in the east of the country count only around 400 British residents.

And only around 850 Brits have set up home in the eastern region of Lorraine and at least one of them is quite happy to be there.

“I'm delighted to be one of the 850 Brits who live in Lorraine. It's a great area with all the variety of British weather with a few occasional extremes of heat and cold,” Rebecca Pintre told The Local.

READ ALSO: The four mistakes made by French property buyers

France-based estate agent Joanna Leggett tells The Local the reasons these regions appear to be no-go zones for Brits are simple.

“The number one factor for where Brits choose to go is the weather,” she says. “In Poitou-Charentes in the west, they get around 2,400 hours of sunshine each year, but in a region like Lorraine, the temperatures are lower and they get a lot of rain.


(The town of Nancy, in Lorraine, is beautiful – but often wet. Photo: MorBCN/Flickr)

“Places like Champagne-Ardenne are cooler and there is also not great infrastructure available in transport links to get them there,” she added.

Whereas those living in Ile-de-Ré or La Rochelle in the Poitou-Charentes region can soak up 2,400 hours of sunshine each year, those in Lorraine have to make do with 800 hours less.

In the Champagne-Ardennes region the sun shines for an average of 1,500 hours each year.

And in the regions of eastern France can suffer from long winters which may put off many Brits from setting up there.

However these regions are popular with Germans, Belgians and Swiss expats.

“Brits also tend to go to the more scenic areas. They also love the Dordogne because it looks like home,” Leggett says.

Despite Corsica having the weather and the scenery, transport between the island and Britain does not come cheap.

One area that Britons are also avoiding is Burgundy, where there are around 2,300 Brits. But given the scenery, cuisine and great wine on offer, estate agents are baffled that there are not more.

“Burgundy used to be really popular but people just don’t seem to be interested in it and I’ve no idea why. Perhaps they’ve just found other areas where the prices are better,” says Leggett.


(This map from Leggett shows where different nationalities like to buy in France)

One other reason why so many Brits end up in the same areas is the desire to be with other expats, which although many try to avoid it, does make settling in that little bit easier.

“People often say that they don’t live want to live in an area with other Brits, but actually they do.

“I say to them, do you speak French? And they’ll often say they will pick it up but they don’t realize how hard it is to learn another language, especially when you’re older.  

“When they get to their new home, they realise it’s mostly English speakers who help them out when they need it and it’s the other expats that give them support.”

However the reputation that certain areas of France are like “Little Britain” is unfair says Leggett.

“People talk about “Dordogneshire”, but it’s a huge area and there are villages where there are no Brits at all. In some of the bigger towns, around ten percent of the population is British. That’s still a small amount.


(The skies above the town of Dole, in Franche-Comté, are often dreary. Photo: Math Puente/Flickr)

While British expats avoid eastern France, the same can be said for the millions of tourists who visited France last year.

The country welcomed 84 million visitors from abroad last year who as a whole splashed out €141 billion, INSEE revealed.

While Ile-de-France topped the table second to the bottom of the table comes Champagne-Ardennes in the north east of the country, which earned €1.48 billion through tourism. In third from the bottom position was Franche-Comté, where the takings were €1.5 billion.

However bottom of the table for tourist revenue was Limousin, which has proved a popular destination for British expats.

Are you an expat living in one of the sparsely populated areas mentioned above? We'd love to talk to you. Email us at [email protected] or get in contact with us on Facebook

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PROPERTY

French property: What is buying ‘en tontine’?

If you're buying property in France, you might be thinking about buying 'en tontine' - this has advantages especially when it comes to France's strict inheritance laws, but can also have tax implications.

French property: What is buying 'en tontine'?

What is it?

The ‘clause de tontine’ sometimes also known as a ‘clause d’accroissement’ is a clause that is inserted into the property deeds when you are buying a house or apartment.

It can only be inserted during the purchase, and cannot be added later.

It’s basically a ‘group purchase’. It’s most commonly used by unmarried couples who are buying together but it can be used by larger groups too – for example a group of friends buying a holiday home together.

You will have to ask a notaire to draw up the tontine clause during the property purchase and it can only be used if 

  • the parties are equally involved in the financing of the purchase
  • the parties involved have a roughly equal life expectancy (for this reason tontine clauses may be rejected if there is a significant difference in age between the purchasers)

What’s the point of it?

The main reason that people use it is to sidestep France’s strict inheritance laws, which assign that a certain portion of every estate must go to children, at the expense of a partner. 

READ ALSO How France’s strict inheritance laws work

For this reason it is particularly used by couples who have children from previous relationships.

On a property with a tontine clause in effect, when one owner dies their share of the property passes in its entirely to the other member/members of the tontine.

This cuts out children from inheritance, but means that a surviving partner is not evicted from their home in favour of the children of the deceased. 

It also has the advantage of making the intentions of the deceased clear, to avoid arguments among heirs after their death.

It should be noted, however, that the tontine clause only takes in the property that it covers – other assets may be subject to French inheritance law so it’s therefore probably wise to arrange a will, to ensure your wishes for your estate are met.

The surviving party can ask a notaire to update the property deeds to show that they are the sole owner, if they want. Be aware there will be a fee, which could reach four figures for the privilege – and it doesn’t actually involve any change to the property title.

Drawbacks

The advantages of the system are clear, especially for blended families, but there are some potential drawbacks too, which mean that anyone considering buying in this way would be well advised to take proper legal advice before they start.

Inheritance tax – while a tontine will help you to avoid restrictions on inheritance, it does not exempt you from inheritance tax. French inheritance tax is structured according to your relationship to the deceased, and people who are neither married nor related to the deceased pay an eye-watering inheritance tax rate of 60 percent.

The only exception to this top rate of inheritance tax is if the property is your main residence and it is valued at under €76,000 – in that case, tax is paid at a rate of 5.8 percent.

Married couples and family members pay a much lower rate or not tax, but if you’re not married to your tontine co-purchaser, be careful that you’re not lining yourself up for a massive tax bill in future years.

Wealth tax – depending on the value of the property, it could tip you over into the ‘wealth tax’ category when you inherit. France’s wealth tax is a real estate based tax and is levied on anyone who has real estate assets (property and land) worth €1.3 million or more.

The calculation includes property held en tontine.

Tax savings – you might hear tontines being advised as a way to limit your French tax liability.

While this used to be true, changes to tax laws means there are no no significant tax advantages to buying this way – the same is true for buying a property via an SCI, which used to represent a tax saving until the law was tightened up.

Disinheriting family membersOne side effect of the tontine clause on mixed families is to effectively disinherit any children of the first person to die.

Because the property passed to the survivor, under French law, only their direct descendants – rather than any family by marriage – are entitled to automatic inheritance.

That means that the children of the surviving partner will be entitled to the statutory share of the entire asset (between 25 and 30 percent depending on the number of children), but the children of the first person to die will be entitled to nothing. Obviously you can choose to leave them something in your will, but you can only leave them some or all of the estate which is not automatically given to the children on the survivor.

Divorce/dispute – if the members of the tontine split up or (in the case of friends) fall out, then they can either sell the whole property or agree to buy each other out.

However, if one party refuses to sell, then you have very limited legal options – unlike a standard property purchase a tontine is not regarded as joint ownership, so one partner cannot be forced to sell as part of a divorce procedings, for example.

Basically the tontine can only be ended or changed with the agreement of all parties – so if you can’t agree between yourselves then you may be stuck with it.

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