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110km/h speed limit in France: Macron delays decision

Proposals to lower the speed limit on French motorways sparked controversy and reminded France of last year's 'yellow vest' protests. Now, President Emmanuel Macron has chosen to postpone the debate on the topic altogether.

110km/h speed limit in France: Macron delays decision
Photo: AFP

As he presented the first conclusions of France's Citizens' Convention on the Climate (CCC) on Monday, Macron said that he believed an ecological transition should not be at the expense of rural and isolated areas of France and who depended on their cars to get around.

“Those who spend 45 minutes or an hour every day on the highway to go to work (..) will say to themselves, 'there is no place for me in their project, it's an urban project where I do not exist',” the president told the 150 CCC representatives present.

“That is why I believe that the debate on 110 km/h must be postponed,” he said.

 

The CCC is a group of members of the public who have spent nine months putting together a far-reaching plan to lower France's carbon emissions by 40 percent by 2030.

The proposal to lower the limit on French motorways from 130km/h to 110km/h is one of the CCC's 149 proposals.

Macron said the government would retain 146 of the 149 proposals, which span over a wide range of topics from transport to the workplace and shopping and eating habits.

His announcements came the day after a Green surge dominated France's local elections – the French greens won in a series of important cities and the president's party did poorly – putting increased pressure on Macron to show that he would deliver on his promises to pave the way for a greener future for France.

French local elections: Greens achieve major gains while Macron's party slumps

None of the other proposals caused as much stir as the speed limit reduction, which has been a touchy subject in France for years.

When the French government in July 2018 lowered the speed limit on secondary routes – which largely run through rural areas – from 90km/h to 80km/h in a move aimed at cutting road casualties the move sparked a storm of protest.

 

It became one of the early rallying cries of the'yellow vest' protesters, who saw it as an extra tax that would disproportionately affect countryside dwellers.

Speed cameras on secondary roads were regularly attacked and burned out and at one point the government estimated that 80 percent of the country's speed cameras were inoperable.

After a year of protests, the government decided that it would give local authorities the power to reverse the change if they wanted to, so ow some areas have the limit at 80km/h and others have it at 90km/h.

OPINION: No, this doesn't mean France will get a Green president

Now, the Citizens' Convention on the Climate – paradoxically also itself a result of the 'yellow vest' protests, as Macron created it in response to the protesters' demands for more direct democracy – had asked to decrease the speed limit as an environmentally oriented measure rather than a safety measure.

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TAXES

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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