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LIVING IN FRANCE

French schools, renting property and vocabulary: 6 essential articles for life in France

From how to quit your job in France to choosing the best French school for your kids and learning all the vocabulary of France's cost of living crisis - here are six essential articles for life in France.

Published: 24 September 2022 07:03 CEST
French schools, renting property and vocabulary: 6 essential articles for life in France
Students attend a literature class in the yard of the "Puy du Fou Academie" in Les Epesses, western France. (Photo by Sebastien SALOM-GOMIS / AFP)

In the last two years, many people across the world have either considered leaving or have left their jobs amid the “Great Resignation” (or La Grande démission, en Français). 

If you have thought about quitting your French job, or perhaps you simply want to understand the procedure for resigning in France, we’ve put together a guide that should answer all of your questions. 

EXPLAINED: What you should know if you want to quit your job in France

Next, the French government is recommending that everyone become familiar with this website, and you’ll really to know how to use it if you will be living in France during the winter of 2022-2023. 

Ecowatt is the government’s ‘energy forecasting’ website. It will provide you with daily updates and give you an idea as to whether the electrical grid is under stress due to energy shortages. The Local put together an article on how to sign up for alerts, which will help you keep track of whether your area is at risk for short, localised power cuts this winter.

‘Ecowatt’: How you should use France’s new energy forecasting website?

Amid potential energy shortages this winter and the cost of living crisis, foreigners living with France have been faced with learning a whole new set of French vocabulary words.

It can be difficult to keep up to date with the French news – even for native-French speakers. To help you follow along and stay informed, The Local has compiled a list of French terms you are likely to hear when the government or media discusses inflation, along with their English translations.

The French words you need to understand France’s cost of living crisis

Parenting in a country you did grow up in comes with unique challenges and joys. One thing anglophone parents tend to wonder about is whether or not they should send their children to international schools (where English might be more widely spoken) or opt for local French schools.

The Local spoke with some anglophone parents, and compared the advantages and disadvantages of the various options in order to help you make the best decision for your family. 

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

Many foreigners living in France prefer renting to buying. When looking for that perfect home or apartment, there are a few things to consider. First and foremost – renting in France depends largely on where you live. Renting in a rural or suburban environment will differ greatly from renting in a big city. Nevertheless – renters across France are faced with the same question: furnished or unfurnished? 

The two options differ in terms of price, convenience, and sometimes availability. You can read The Local’s guide to renting property in France.

Renting property in France: Should I go for furnished or unfurnished?

The 2024 Olympic Games are already on the horizon, even though they might seem far away. The city of Paris and its surrounding suburbs have already begun extensive preparations to host athletes, their families, and the thousands of fans who will come to enjoy the Games.

If you live in France and you are considering attending the games, The Local has put together what you need to know in order to secure your tickets.

How to get tickets for the Paris 2024 Olympics and Paralympics

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LIVING IN FRANCE

Are Canadian pensions taxed in France?

If you are considering retiring to France, you might be wondering whether you will still be able to access your Canadian pension and if it will be subject to French taxes. Here is what you need to know.

Published: 26 April 2024 16:20 CEST
Are Canadian pensions taxed in France?

Before going any further, it is worth noting that this article is meant to give an overview of the pensions situation for people with Canadian pensions. It does not replace professional financial advice, and Canadians looking to retire in France should still seek out expert financial assistance as needed.

The first step is to determine whether or not you are a tax resident in France (you can look through our guide). All tax residents must fill out a yearly tax declaration, and they must report all global income, even if it is not subject to tax in France. 

You should also consider if you have a pension from another country besides Canada, as different rules may apply based on that country’s bilateral tax treaty with France. Here is the situation for British, American, and Australian pensions, and here is an overview of the system.

Where is my pension taxed?

In Canada, the pensions system includes multiple tiers of public and private schemes, but luckily the double tax treaty between Canada and France is explicit about where pensions are taxed.

The Local spoke with Isaac Barchichat, a registered CPA in France, Canada and the USA to understand the situation for Canadians in France. He is a managing partner at Monceau CPA, an international accounting firm based in Paris with offices in the US and Canada.

He told The Local: “Tax treaties usually follow the OECD model, which means that Article 18 is usually focused on pensions.

“Article 18 for the Canada-France treaty is very similar to the USA-France treaty. This means that pensions are taxed in the country that they are issued in,” he said.

As a result, any Canada-based pension – whether that is the Old Age Security plan, the CPP (Canada Pension Plan) or QPP (Quebec Pension Plan), or a private personal or employer plan (such as Registered Retirement Savings Plans, or RRSPs) – would be taxed in Canada, not France.  

Barchichat explained that Canadians in France should still declare their pension income in France. Like Americans, they will receive a tax credit from France attesting that they have already paid tax in Canada on their pension.

“People should still maintain proof that the pension was already subject to tax, in case of an audit,” he added.

Barchichat also recommended that Canadians resident in France can make use of the ‘mention expresse’ section in their French tax declaration.

“Sometimes French local tax authorities fail to assess foreign income properly. Using the ‘mention expresse’ allows you to specify to French tax authorities Article 18 from the tax treaty to ensure that they process your documents properly,” he advised.

All of this being said, Canadians should beware that their pension income could still count towards your total household income in France, even though it is not taxed here. As a result, it could end up pushing you into a higher tax bracket.

What about social charges?

In addition to taxes (impôts), France also requires people to pay social charges (prélèvements sociaux) on income. However, only specific types of income can be considered for social charges, such as the CSM charge (PUMa) for healthcare. 

The general rule is that pensioners and their spouses do not have to pay the CSM charge, but France specifically exempts people who have a pension from France, the EU, the EEA and the UK (people with S1 forms), as well as their non-working spouses.

There is some debate over whether American and Canadian private pensions ought to be treated as a pension (and therefore exempt from CSM) or as investment income (which can attract CSM charges). 

When it comes to Americans, tax expert Jonathan Hadida from HadTax told The Local: “Under the principle of equality amongst taxpayers, URSAAF has treated most US pensions/IRA distributions/401(k) distributions akin to a French/Swiss/European pension and have therefore exempted Americans with pension income.”

“I have called URSSAF, and I was told by the representative that they should be paying for PUMa. But in practice, I have not seen many American pensioners charged for it.”

It is likely that similar standards are applied to Canadians. 

Barchichat, who is licenced in both the US and Canada, said that in his opinion neither American nor Canadian pensioners should be charged for prélèvements sociaux. 

“If this happens, it is a mistake by tax authorities”, he added. You can learn more about contesting a CSM charge here.

READ MORE: Cotisations: Why you might get an unexpected French health bill

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