Message Forums

Hi

Can anybody advise me as to how I get to open a french bank account?

Is it the same procedure as at home.Its basically for clients to pay us in euro's when they hire our mobile home,we are getting more and more european clients this year than previously.

Many Thanks

Mandy

This is a site for Brits who live or want to live in France. Lots of advice re French Banking.

Carol

Hi Mandy,

Would definitely agree with Floydfan. We have an apartment in Switzerland which we rent out but even though we have a Swiss bank account for paying bills we find it easier to get clients, regardless of which currency they use, to pay straight into our bank account in the UK using our IBAN. Beware of bank transfer charges though, make sure the client is aware that they are liable for them or you may end up out of pocket. We also had an incident where a client from Dubai paid by bank transfer and an extra amount was deducted by an intermediary bank, so be prepared.

Susie

Hi

Thank you all for your replies,I think I will do as you said and leave things as they are then.

Many Thanks

Mandy

Actually, even if you are UK-resident, I think if you are renting out a property of any kind that is located in France, even just to UK customers, you are liable to pay French tax on the income.

I used to rent out a cottage in France, always to fellow-Brits, and one day I read an article in something like Brittany Ferries newsletter about this, telling you how to go about. it.

I am going back a bit here (I stopped renting in 2001), and my info may no longer be completely up to date, but you had to complete a French tax form each year on which you enter the euro equivalent of the total sterling fees you charged.  The French authorities calculated your tax by dividing the income in half; ignoring one half and then taxing you one-third of the remainder.  That seems fairly fair.

Then when you complete your UK tax declaration, you state what tax you have paid in France, and because of the "double-taxation agreement" between the two countries you are not taxed twice.

I also discovered from my local Mairie that I was due to pay them "taxe de sejour" for every adult and child that was in the rented property during July and August.  It was a few pence a day, so I just stumped it up myself, but I suppose you could add that on to the rental charges.  I used to keep a chart of how many adults and children were there for what nights in this period, add it up and pay the Mairie once a year.

If you want to keep you nose clean and conscience clear, this is the way to go.

It's so long since I opened a French bank account that I cannot tell you today's requirements, but I bet you have to show ID, proof of residence (France and UK), birth certificate, marriage certificate, divorce certificate (if relevant!) and maybe details of your current bank balances in the UK.  But I am guessing. 
Beware, that in France you are NOT allowed to overdraw on your account (penalty is 10-year suspension from having a bank account!).  So always be aware how much is in it, and top it up regularly.

If you accept cheques in euros and pay them into your *UK* bank account, which I have to for work, I find that my UK bank charges £8 per transaction; this can cover several cheques paid in together, so it's worth hanging onto two or three to economise on charges.

Angela

Ah, Stu, that seems more reasonable.  And good advice, as ever.

It had got awfully complicated when I was involved in the French system, during the 1990s, because they started estimating your earnings based on previous years, and asking for instalments of next year's tax before you had done the return for the current year.  I got fearfully confused.  Even after I had stopped renting property, I had to fend off French tax demands for several years!

I think the obligation to pay taxe de sejour depends on how "touristique" an area you are located in.  My place was 25km from the coast, so maybe that is why I had to pay it.

Angela

Hi everyone

Oh my god,I really hadnt realised half of this stuff your all on about.I think my best bet would be to continue doing things the way we have for 16 years,its worked .

The only thing was that this year we have had a lot of french/dutch enquiries about the new mobile and thought it may be easier to have them pay into a euro account.

But thank you all once again

Mandy