photo: donaldtownsend

by Alison Dupré

Until 1999 I had always lived in the UK. When I decided to settle in France I soon realised that there were as many cultural differences as there were new words to learn. I was fortunate enough to study languages at university, so at least I could get by; nevertheless I found it difficult to sort out everyday administrative tasks. After several years of living in France I have discovered that even the French find their administrative system complicated!

I meet English-speaking folk, some of whom have decided to settle down in France, others who have a holiday home here, but who don’t speak much French. They invariably find themselves in great difficulty when they come face to face with French bureaucracy. Even paying a bill can seem complicated if you don’t know how to write a French cheque or if you cannot fill in the direct debit request form.

For newly arrived French-residents the main problem areas seem to be taxation, banking and social security cover (health insurance). Whilst the main difficulties encountered by non-residents tend to be paying invoices and bills, how to transfer funds to France cheaply and efficiently and understanding how French companies and institutions work.

French banks can offer information and solutions to most of the above, but there are relatively few French people who are fluent enough in English to provide this information and this can lead to various misunderstandings. For example, contrary to popular belief, it is possible for a non-resident to open a bank account in France. However, given that bank personnel are often unable to identify a proof of address or proof of tax residence in English, foreigners have often been refused bank accounts unless they already have a property in France.

In reality, however, the documents which are required to open a bank account are as follows: a valid passport, a recent utility bill for your home address, together with a recent tax return/pay slip/ P60 or other tax document which allows the bank to correctly identify your official country of residence. (Generally speaking, where you spend more than six months in any one year is where you pay your taxes and is therefore your country of residence). Some banks do ask for additional information such as bank statements as a form of credit check in order to verify that you are entitled to have a bank account in your country of residence.

French banking usually works on a pay-as-you-go system whereby you pay a monthly fee for your account for a package service including several services free of charge or at half price and an overdraft at preferential rates. There is also an annual charge for bank and payment cards. The costs vary in accordance with the type of card.

Together with a bank account and direct debit card, most non-residents require a cheque book (there is no such thing as a cheque guarantee card in France) and a savings account. Many non-residents choose to have a French mortgage in order to take advantage of the low rates and advantageous conditions offered.

Most French banks now offer a full range of insurance policies most of which are available to their non-resident clients. These include home insurance, car insurance and legal cover.

A range of banking services are available through most high street banks, although few offer an English-speaking service. Although staff have mastered English, they haven’t always mastered the cultural differences between France and neighbouring countries. But things are improving …

Alison Dupré is Bilingual Account Manager for Crédit Agricole Sud Rhone Alpes