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The French Connection First Published in Businesses and Premises For Sale magazine 1999. Summer is coming. And for many UK nationals that means France and all that is French. Whether your cup of tea is watching scantily clad Scandinavians swimming in the Med or swigging back a drop of Bordeaux red in that little cafe in Penne D'Agenais, there is one image which prevails. For many people, France conjures up an image of long hot summer days and possibly the desire not to come home again. Well, more than a few stay - or go back - to set up home and possibly buy a business. Property purchase in France is fairly typical for UK nationals now the EEC is functioning. And although it has its critics on both sides of the English Channel, it has certainly encouraged more freedom to live and work where you wish. You do not need a Visa to visit, live or work in France. You can just decide to go, load up the Volvo, chuck the kids in the back, drive through - or at least to - the tunnel and, hey presto, "you're French". Not quite unfortunately. While technically you can do this - and even claim unemployment benefit when there - if you what I have just described, that is certainly what you will be doing - drawing unemployment benefit. Followed within a short period of time by reloading your Volvo - if you haven't had to sell it to pay the bills - and returning to damp old Blighty a lot worse off for the experience. France is a wonderful country but, like anywhere else, it has its own rules, laws and idiosyncrasies which need to be considered before going. It is absolutely vital that you decide where you want to live and even more importantly, how you are going to earn a living before going any further. Income must be your first consideration. Finding somewhere to live in France is fairly simple. There are no end of houses, apartments, farms and villas for both rent and sale. Finding a job or buying a business is another thing. The French are qualification-crazy. Young people are encouraged to stay in education for longer and longer periods and vocational qualifications can be essential for certain lines of work. UK professional qualifications look different to French employers and therefore often go to the top of the pile which can be an advantage. But if you can't follow up at interview with fairly fluent French, forget it. French people talk in terms of the Bac+11 which is approximately the equivalent of A levels. Bac+11 means qualifications lasting two years after obtaining the Baccalaureat. For most people wanting to live and work in France, a better option than working for someone else is working for you. Many businesses are available for purchase from cafes, site complexes and camp sites to hotels, farms, vineyards and most other categories available in the UK. If you own a property in France, you are liable to pay Taxe Fonciere. Living in it adds Taxe d'habitation on top. These vary from region to region and with property size and value. All in all though, these work out at about the same as you would pay in the UK. Income tax starts at 12 per cent on earnings between FFr 22,210 and FFr 48,570 (£2,700 to £5,900 approximately). The top rate of tax is higher than the UK at 54 per cent and comes in at FFr 228,100. On retirement, you are now able to remain in France and draw your pension there. VAT in France varies with 2.1 per cent on medicines, 5.5 per cent on food and a top rate on most other items of 20.6 per cent. Whatever you do, insure your health. Various English companies will help you in this regard and supply documents in English. One of the easiest businesses to buy and operate in France is a Chambres d'hote. A friend of mine, who is thinking of moving to the Agen area, asked me what the difference was between a small hotel and a Chambres d'hote. Well, I suppose the simplest way of putting it is that a Chambres d'hote is similar to a British Bed & Breakfast with a bit more "savoir faire". Financial Rewards Flourishing firstly in Brittany, they were created in response to demand from visitors from the northern European countries. Running a Chambres d'hote probably requires more energy than renting out gites, but the financial results can make it worthwhile. Six rooms let in August soon add up to a decent income. If you like the idea of playing host to your paying guests, then before buying your business, learn the following French law by heart - particularly Article R111/1: The Chambres d'hote (up to six rooms) is a "maison d'habitation". It is described elsewhere as a non-commercial activity. I know it's an odd way of putting it - particularly when renting out rooms can be so lucrative - but there you are. I said earlier France had many idiosyncrasies and this is one of them. The classification means you don't pay professional tax - just Taxe d'habitation, as you would on an ordinary house. You don't need to pay fees to the Chamber of Commerce. There is no need for an accountant and you only pay VAT if you provide an evening meal - not bad, eh? If you do buy a Chambres d'hote, don't forget that French families are great socialisers and often stay in Chambres d'hote when visiting relatives miles away. So aim some of your marketing at them. Whatever you do, good luck. France really can be a fantastic experience but don't forget to get expert legal advice and consider all the aspects before - and not after - you leave the UK". |
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