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TAXES

Why you might find extra money in your French bank account this week

When you check your French bank account on Wednesday, you may find a nice surprise from the tax authorities.

Published: 23 July 2024 11:05 CEST
Why you might find extra money in your French bank account this week
Fifty euro banknotes in Arras, northern France. (Photo by DENIS CHARLET / AFP)

Millions of people across France will receive a tax rebate either a direct bank transfer or a cheque (by mail) over the next few days. The first round of reimbursements will be sent out on Wednesday, July 24th, and the second will be sent on Wednesday, July 31st.

If you filed your taxes online via the impots.gouv.fr website, then you can expect your reimbursement to be sent between July 24th and 31st. 

Those who filed on paper may have to wait a little longer. They could receive their rebate sometime between July 24th and August 20th, Actu France reported.

READ MORE: 7 top tips for dealing with the French tax office

The most common scenario for people receiving a rebate is salaried employees whose income is deducted at source, but who are entitled to tax credits, rebates or refunds for things like childcare, domestic help or charity donations.

However money may also be sent to people who are found to have overpaid, or who qualify for other types of rebate.

How does the rebate work?

Most people will receive the payment directly into their bank account, as that information should already be shared with fiscal authorities.

It should appear under the wording ‘REMB IMPOT REVENUS’ and it will be coming from ‘DGFIP FINANCES PUBLIQUES’, according to the French government.

To ensure that the reimbursement goes through smoothly, you may want to check your tax account to verify that the bank account information is correct.

You can do this by going to the Impots.gouv.fr website and clicking ‘Prélèvement à la source’ and then ‘Mettre à jour vos coordonnées bancaires’.

Tax bills

Not everyone will be getting money, some people will be getting bills.

For employees this may be because they were being taxed at the wrong rate, or because they have declared extra income in addition to a salary (eg income from rental property including Airbnb rentals) or they received too much in tax credits earlier in the year and now need to pay back a sum.

Self-employed workers will be getting a tax bill based on the income they have declared for the year. This is in addition to their more regular URSSAF contributions.

How to pay

If you owe up to €300, then you will be automatically debited (from the bank account linked to your tax account) on September 26th.

For those who owe more than €300, the payment will be taken in four separate installments. The first will be on September 26th, then October 25th, November 25th and December 27th.

Beware of scams

Fiscal authorities have warned that people should beware of scams circulating around this time of year, as bad actors may be seeking to impersonate the DGFiP (Directorate General of Public Finances). 

These might include false notifications of refunds, accusations of tax fraud, or requests for payment.

The DGFiP has warned people on their website that tax authorities “will never send emails inviting you to visit an online form to obtain a refund without first logging into your authenticated personal space.”

Tax authorities also warned that they only use email addresses with the domain “@dgfip.finances.gouv.fr”.

As for SMS scams, the DGFiP states that it “never sends out text messages for non-payment.”

It advises that “as a general rule, do not click on the links you receive in text messages telling you that you have to pay a bill, fine or tax. If in doubt, contact the relevant department using another channel (via your personal account, by email or by telephone).”

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For members

BANKING

The key thing to know about opening a joint bank account in France

Opening a bank account in France is an important bureaucratic step when moving here, but before making any decisions you should weigh the pros and cons to the two different types of joint accounts available.

Published: 22 July 2024 15:00 CEST
The key thing to know about opening a joint bank account in France

If you are looking to open a joint bank account with a significant other, friend or anyone else, then you should be aware that there are two types of joint accounts in France with very different rules.

The main difference is related to whether or not account-holders need permission from others to spend or receive money, and whether the account will be frozen by the bank following the death of one of the account holders.

READ MORE: Everything you need to know about setting up a bank account in France

Here is an overview of the two types of joint/shared accounts;

Joint account – Compte bancaire joint

The first is the standard compte bancaire joint. This is most commonly held by romantic partners or spouses.

Account holders are called cotitulaires, and all cotitulaires have full authority to carry out any and all transactions, from withdrawals to deposits.

As a result, if one person overdraws the account or there is a payment incident, then the bank can get in contact with either of the parties, even the person that was not individually responsible for the problem.

If necessary, it is possible (with everyone’s approval) to transform a compte bancaire joint into a compte bancaire indivis (below).

This type of joint account can be held by several people – it is not limited to just two cotitulaires.

You can open a current account (compte courant), certain types of savings accounts and high-interest, restricted access savings accounts, as well as securities accounts. 

That being said, there are several regulated savings accounts, such as the Livret A and the housing savings account (compte épargne logement) that are only available for individual account-holders. 

READ MORE: EXPLAINED: The best money saving options for foreigners in France

What about death?

When this account is opened, the account-holders will sign an agreement about what should happen following an untimely death. Generally, this type of account will not be blocked after a holder’s death, unless one of the heirs of the deceased objects. 

As such, the account would continue being accessible to the surviving holders and if it is only one surviving holder, then it would become their individual account (as long as there is authorisation from the heirs of the deceased).

The share of the account belonging to the deceased will be determined when the account is settled via a notary. If there is a negative balance, then the bank may request that the surviving account holder pay for any related fees.

READ MORE: How to register a death and arrange a funeral in France

Shared account – Compte bancaire indivis

The second is called a compte bancaire indivis or a compte en indivision. You might also see it referred to as a ‘compte commun’.

This is another type of shared account, and it can be held by several people at once. The main difference is that all account-holders must approve all transactions.

There are fewer types of bank accounts that can be held under this status. You may open a current account, or a securities account (for depositing shares and bonds). However, you cannot open a savings account with a compte bancaire indivis.

What about death?

If one of the account holders dies, then as soon as the bank is informed, they will automatically block the account – therefore if you’re using this type of account as a personal account, it’s highly advisable to have a second account that you can use in the event of the death of your fellow account holder.

It will no longer record any deposits or allow any withdrawals. The balance (whether it is positive or negative) will be settled once the entire estate of the deceased person is handled.

The standard requirement is for the bank to be informed within a maximum of seven days following the death, either directly or by registered mail.

Interest may continue to accrue, but the gist is that the account will be dealt with during the settling of the estate. 

There are a few common situations where you might choose to open this type of joint account, namely following an inheritance awarded to several people or during the settlement of an estate while all heirs own the deceased person’s property.

You might also open this type of account when a property is purchased amongst friends.

Similarities between the accounts

Both accounts come with their own IBAN number, and neither require that the account-holders be married or in a civil partnership – they can be held by anyone, from family members and friends to spouses.

That being said, both will request a common address for mail related to the account.

Account-holders can be of different nationalities, but they will need some proof of address in France, as well as ID to open the account.

In both cases all account-holders must sign off on the closing of the account. Divorce or separation does not lead to the automatic closure of the account, and a specific request must be made to the bank.

For Americans, there can still be challenges with opening a joint accounts with a French partner or friend(s), due to IRS rules.

READ MORE: What are the biggest challenges for Americans in France?

American legislation known as the Foreign Account Tax Compliance Act, or FATCA for short, obliges foreign banks to report back to the US tax office on any assets held in these accounts by US taxpayers.

This can make French banks less willing to work with Americans, and it can also make it harder to open a joint or shared account.

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