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TAX

Reader question: Do I need to declare my non-French bank accounts?

Tax declaration season is upon us and one issue that often catches foreigners in France unaware is bank accounts in their home countries - we explain.

Reader question: Do I need to declare my non-French bank accounts?
Photo by PHILIPPE HUGUEN / AFP

Question: I’m living in France and filling in my French tax declaration and have come to the section on foreign bank accounts, investments and holdings – I don’t have shares or investments outside France, are they really asking me about my old account back in the UK that has about 27p in it?

The annual French tax declaration is a comprehensive document, compulsory for almost everyone living in France, in which you’re asked about all your financial affairs. When looking at exactly what you have to declare, the short answer is – everything. For example;

  • If you’re working in France you need to declare your French income – even if you’re an employee and your salary has already been taxed at source.
  • If you’re not working you need to declare all your income, even if it comes from outside France eg a UK or US pension.
  • If you get any income from outside France – eg rental income on a property in another country – you need to declare that too.

For full details on what to declare – click HERE.

It’s important to note that declaring your income does not necessarily mean you will have to pay tax on it – France has dual taxation agreements with most countries so that if you have already paid tax on your income in another country, you won’t be taxed on it again – but you still have to tell the French taxman about it.

When it comes to bank accounts, you also need to declare any bank account that has your name on it – including joint accounts – that are held outside France.

This is in the section of the form for foreign earnings and investments, so it’s easy to miss but it’s an important one for foreign residents, who are likely to have at least one account in their home country.

Ask the expert: How to fill out each section of the French tax declaration

You need to declare each account that that you have – the bank/building society that it is with, the account number and the date you opened the account, so it’s worth getting this information together before you start filling out the form.

You don’t need to declare how much is in each account, but you do need to be careful to declare all accounts that you have – even if they are dormant or only have a tiny amount of cash in them.

If you have cryptocurrency accounts you need to declare them too, although they have their own section.

If you have a PayPal account you might also need to declare that – although only if you use it for business or you have spent more than €10,000 with it in the last year.

Finally if you have insurance policies such as life insurance in another country you need to declare that too.

The good news is that if you declare online, your declaration remembers last year’s information so you don’t need to fill out all this information from scratch every year, but if you have opened a new account in the past year, don’t forget to add it to your declaration.

What happens if you don’t declare them?

You might think that your 27p back in the UK is not very important, in the scheme of things, but not declaring a bank account or investment scheme carries with it hefty penalties – they range from €1,500 to a maximum of €10,000, with €3,000 being the most commonly applied amount. And that fine is per bank account, so if you have several accounts that you haven’t declared the fines can quickly add up.

International money-laundering legislation means that banks and governments share a lot more information these days, so it’s definitely not worth the risk. 

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For members

EDUCATION

Fees to class sizes – what you need to know about private schools in France

In many countries, private schools are the preserve of the wealthy elite, but France has a wide network of private schools that are well within the financial reach of ordinary families - James Harrington explains more.

Fees to class sizes - what you need to know about private schools in France

The education system in France has its problems – at the start of the new school year some 4,000 teaching posts were unfilled and the government has launched an ‘emergency plan’ for English language lessons – but there’s no doubting there are wonderful schools and wonderful teachers making every effort to ensure children from aged three to 18 get the education they deserve.

However the country also has a sizeable network of private schools and around 15 percent of French children go to a private school. While some are undoubtedly expensive and elite, others are surprisingly affordable and provide an extra option for parents when deciding on  a school for their children.

Here’s what you need to know; 

Different types

There are two types of private school – sous contrat and hors contrat.

Sous contrat schools, of which there are about 7,500 in France, are part-funded by the state – teachers are paid by the Department of Education, for example – but also charge fees. France’s numerous Catholic schools, or regional language schools are usually sous contrat.

Hors contrat schools – which number about 2,500 – must still meet general education requirements but can choose their teaching methods and have no state funding. Private international schools found in most big cities, such as the American School of Paris, are hors contrat, but still follow mainstream teaching methods.

For comparison, there are around 60,000 state schools in France.

Prices

Yes, there are expensive private schools in France. Sending your child to the exclusive Ecole des Roches Private Boarding School, for example, will set you back more than €12,000 a term – not quite Eton or Winchester-level fees, but still well out of the reach of a large portion of the population. But, like Eton and Winchester, they’re not the norm. 

On average, fees for a day pupil – one who goes home at the end of the school day, rather than one who boards at the school – are in the region of around €2,250 a year. Meals are not included, and are generally charged at a slightly higher daily price than at state schools.

Financial aid, including scholarships, may be available for less well-off families.

READ ALSO French school canteens to cut cheese course as inflation bites

Boarding and hours

A large number of state and private schools offer Monday-Thursday boarding. It is not uncommon for pupils who excel at certain subjects or sports to attend collèges or lycées some distance from home, and board during the week.

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Daily school hours, meanwhile, are broadly similar, with children generally starting their school day at around 8am and finishing soon after 4pm on school days. Collège and lycée pupils also go into school on Wednesday mornings, and some may have classes on a Saturday, too.

Popularity

Smaller class sizes and a reputation for “better” results means that private schools are increasingly popular. The number of French private schools has increased steadily over the last decade, and now 15-20 percent of pupils go to a private establishment of some form. 

On the whole, private schools tend to do better in results league tables – perhaps in part because of the additional investment from parents, but also because class sizes tend to be smaller, which allows for more one-to-one education. Smaller class sizes and more individual attention mean they may also be a better option for children who struggle in big schools.

READ ALSO What kind of school in France is best for my kids?

Qualifications

State schools and sous contrat schools teach to the national curriculum, which leads, in turn, to brevet and baccalaureate qualifications.

In contrast, some hors contrat private schools offer different qualifications, including American High School Diplomas and SATs, British GCSEs and A-Levels, or the international baccalaureate.

Religion

Although many sous contrat schools are Catholic, most readily accept non-Catholic children and are not allowed to indoctrinate the Catholic faith. Hors contrat schools, on the other hand, may include a religious element to their teaching.

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