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DRIVING

What changes for drivers in France in 2024

Law changes, speed limits, fuel prices and road signs - there's a lot of changes if you're driving in France in 2024.

Published: 27 December 2023 08:38 CET
What changes for drivers in France in 2024
(Photo by Pascal GUYOT / AFP)

Speed

Let’s start with speed limits, which will see several changes in 2024.

Motorists caught speeding up to five kilometres over the limit will no longer risk losing a point on their driving licence – but will still be subject to fines – according to a government decree published in the country’s Journal Officiel in early December.

France decreases penalties for ‘minor’ speeding offences

In most places the speed limits themselves will stay the same, with the possible exception of Paris.

City hall wants to lower the speed limit on the Paris ring road to 50km/h – dropping from the current 70km/h in September 2024, following the Olympic Games.

However the government is reportedly not keen on the idea and may block it. Expect arguments next year before it is decided one way or the other (although most of the time you’re doing well if you manage to get above 30km/h on the famously traffic-choked périphérique).

Speed limit on the Paris ring road to drop down to 50km/h

Costs

Running a car can be a costly business, and there are some changes afoot here too

Several regional authorities in France are planning to increase fees for processing new vehicle registration documents – known colloquially as the carte grise – in 2024. Full details here: The extra cost of buying a car in France in 2024

The cost of running an electric car is considerably lower than running a petrol or diesel car, but they are more expensive to buy – meaning that for many lower income households, switching is not a possibility.

From 2024, however, lower-income motorists in France will be able to take advantage of a government-backed deal for leasing electric vehicles, aimed at boosting take-up by helping lower-income households with the costs.

France to launch €100 per month electric car lease scheme

French President Emmanuel Macron also announced a new fuel subsidy, which “could reach up to €100 per year”, to help motorists deal with rising fuel costs. The measure was introduced in the 2024 budget. 

Whilst no details have been officially confirmed French media report that the average qualifying motorist would save €0.20 per litre over a six month period as a result of the new ‘fuel cheques’. 

Not everyone will be eligible, however.

Who could benefit from France’s planned new fuel subsidy?

Meanwhile, Oil and gas giant TotalEnergies announced in September that it would extend its fuel price cap of €1.99 per litre beyond the end of the year.

France’s TotalEnergies to extend fuel price cap until 2024

Driving age

17-year-olds in France are now allowed to obtain a permis de conduire, as of January 2024, according to Le Parisien. Previously, licences were only issued to people 18 and up. 

The same conditions for holding a type ‘B’ licence will apply, including passing the code and practical tests after 20 hours of lessons, as well as holding a probationary licence for the first three years.

New laws

Not exactly a new law per se, but a new application of fines. The law on winter tyres was introduced in 2022, but the first two winters were ‘grace periods’ when drivers would only be warned by police.

In 2024, fines start coming into force for motorists in mountainous areas of France who do not have winter tyres on their vehicles. Full details: MAP: Where in France do I need snow tyres this winter?

It has been several years – and many delays and U-turns in the making – but France will finally introduce a vehicle safety test for motorbikes and scooters starting in April 2024. The contrôle technique vehicle inspection is already compulsory for cars.

Contrôle technique: What we know about the new French safety checks for motorbikes

Also from April 2024, the French government has announced, the green car insurance cards found in the windscreens of French vehicles will be done away and replaced by an automated system accessible to law enforcement.

France will no longer require cars to show insurance green cards

Insurance rules themselves stay the same, it’s just the green cardboard ticket that is being done away with.

Diesel vehicles already face some restrictions in French cities and are set to face more in the months and years to come, because of their relatively higher rate of emissions.

Part of the plans include bans on certain areas of certain cities – and the number of areas enforcing these rules is set to increase throughout 2024 and 2025.

Is France really banning diesel vehicles from cities?

And finally, following a trial period in 2023, a new road sign will soon be popping up on roads around France – and it carries a hefty fine if you fail to respect it.

The new French road sign that can net you a €135 fine if you ignore it

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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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