We have been living down in the Languedoc Roussillon area for almost 3 months now and can truthfully say there is very little we miss about the UK. Taking the huge step of moving to another country will always mean at least slightly going into the unknown, however long one may have spent there previously. My husband and I have always loved France and for us, this really is a dream come true. I dare say I am preaching to the converted here, for since you are reading this newsletter, you are likely to be a fellow Francophile! We had thought there would be aspects of our life in the UK that would occasionally make us yearn for familiarity but no, we simply love it here.
I am often asked about areas in France. In a way, one is spoilt for choice; this is such a large country. If you like big wide open spaces, mountains and having the sea within spitting distance, the Languedoc Roussillon is hard to beat (and I suppose I am a little biased here). However, we have friends who have moved very happily to other parts: Reims, Normandy, Charente and the Dordogne. It is a case of working out what is important to you in terms of geography, proximity to the UK perhaps, favourite cities and countless other considerations. I have helped many readers come to a decision as to which area to look in for them and will be happy to do the same for you. Simply call or email me with your requirements or click on the following link and we will do the rest! http://www.FranceBuyingGuide.com/resources.htm
Although many English people look to France as a wonderful country to retire to, more and more young families are upping sticks and moving here with their young children. The French education system is first class and if you are thinking of moving here with your family and need advice on how best to go about finding schools, would like to know what it is really going to be like for your offspring, read on: I have some hints and information for you on schooling in France right here.
We also have some essential news for you on that most important subject: currency and how best to transfer it using Smart Currency Exchange and I share with you my top tip of the month. Somehow sitting outside sipping a coffee and watching the world go by takes on a new dimension in this, the most beautiful of countries…
So a very warm welcome to this month’s France Buying Guide newsletter. If you would like to hear the story of our own house renovation, take a look at my blog which comes out each Friday here: http://francepropertybuyingguide.blogspot.com/
Meanwhile I invite you to sit back with your cup of coffee or glass of wine and let your mind wander over to France for a while.
French state education is far superior to that in the UK. Standards are high and there is a high degree of consistency throughout the country, such that children of the same age will likely be studying the same text books and subjects at the same time. The French Government recently introduced the “Seven Skills” that are the basis of teaching in primary and secondary schools and all children are expected to have these skills at their fingertips when they leave school. They are:
Mastery of the French language
Knowledge of another language
At least basic knowledge of maths, technology and science
The humanities
Social responsibility
Initiative and autonomy
Familiarity with modern techniques of communication
School in France is compulsory for all children aged between 6 and 16 and there has been recent development in preschool education, such that all children aged between 3 and 5 attend nursery school.
The French education system is primarily oriented towards structured learning with a great emphasis on traditional teaching techniques. The main difference between it and the UK system – and perhaps the only criticism British parents may have of it – is that it tends to embrace more rigid teaching methods with perhaps less emphasis on freedom of expression and extra-curricular activities.
Having said that, from a personal point of view I have been extremely impressed to meet several young children in our village (thanks to our dogs Eddie & Alfie’s social ability!) who speak and seem to understand basic English. Learning another language is very important not only to be able to communicate in that language but because the very act of learning keeps one’s brain active and it is vital these days to expose our children to different cultures.
I have often been asked about taking a child who may not be familiar with any French into the French education system. True, it is a big step to whisk a child away from his or her friends and general familiarity at school but it need not be as much of a problem or adjustment as you may think. There will likely be other expats in your area who have been through the same challenges before and young children are extremely adaptable. Starting a child early in primary school in France will reap its rewards pretty quickly and you can expect him or her to become pretty much fluent in their adopted language within as short a time as 6 months. In fact, you will be the one asking for guidance from your child! A very good friend of mine moved to France when his children were aged 6, 12 and 14. The 6 year old not only became fluent in just a few months, she went to the top of her class in Maths and French!
As a general rule of thumb, children under the age of 10 will learn French without accent. Over this age, there may be a slightly detectable accent but again, such is the nature of youth that there should not be too much difficulty in happily integrating.
Remember also that with the continual movement of foreigners arriving in France, particularly from Northern Europe, teachers are becoming ever more familiar with non-French speaking children and it is unlikely that your child will be the only non-French mother tongue child in the class.
Once established in a French school, although as I have said there is less in the way of extra-curricular activity, this is in part made up for by the large number of clubs and societies in many villages and small towns in France. Encouraging your child to engage in local French life will not only enhance his or her language skills, it will also provide a great social outlet and afford earlier integration not only for your child but for the whole family.
If you would like more specific help with education in France or have any pressing queries before taking the plunge to move to France with your children, do let us know and we will be happy to help you further.
The Election and how it has affected the Currency Market
The UK has just had one of the most hotly contested elections in living memory which, as expected, resulted in a hung Parliament [no one party having a clear majority]. Whilst we saw the pound gain initially as the new Conservative – Liberal Democrat coalition was announced, it has fallen even further and has hit a 13 month low against the US dollar as the reality of the situation facing the UK has hit home. With the election now firmly out of the way, what will drive the value of the pound over the next few months?
Sterling has come under attack in the last few months over political uncertainty related to the perceived ‘weakness’ that a hung parliament would bring. Why has this been a problem? The UK needs to match income to expenditure that means tax hikes and spending cuts in order to start paying down the biggest deficit since WW II. Neither the Conservatives nor the Liberal Democrats made it clear in their manifestos exactly how they would tackle the huge deficit. Sterling has weakened since the election as the government has promised £6bn of cuts in the next year and many are concerned – especially with poor housing figures released this week – that aggressive cuts will stifle out the fragile growth that we have seen so far since the credit crunch. Looking at the UK relative to the USA, where interest rates are expected to rise at some point later this year, the USA becomes a far more attractive investment than the potentially stagnant economy of the UK. Whilst the markets have embraced the new government’s stance on aggressively cutting the deficit, they are tentative over its implication.
The new chancellor George Osborne releases his first budget on June 22nd, in which he will outline where the cuts are to come from in order to attack the record deficit. For the pound to strengthen there needs to be a clear plan of action that the financial markets thinks is realistic and addresses the core problems and which the “ruling” parties can agree in order for any legislation to get passed. This may seem like too much to ask. Firstly, there are potentially deep ideological differences between the parties on how policy should be implemented and it is likely that the markets will be sceptical of any budget clearing plan – especially given the scale of cuts and savings required.
As it stands, the outlook for the pound is poor against the US, Australian and New Zealand dollar or South African rand as these economies seem likely to retain the relative upper hand over our own. There may be one light at the end of the tunnel for sterling – the Euro zone. With the Euro zone in the midst of a debt crisis, the pound could take advantage and strengthen. Could we see sterling hit €1.20/ £1 in the coming months? We will have to wait and see. The best thing to do is call in sooner rather than later and speak to a currency specialist to ensure that you avoid missing out on favourable rates and ensure that you don’t lose money by buying at a poor time.
"I have used other currency companies, which are very good, but I don’t tick all the boxes like Smart Currency. I was looking on the web and came across Smart Currency, I am glad I did, and gave you a try. First class. Also getting registered was so easy. I will recommend you to my friends. I will be using you in the future"
It’s often the people that wait until the last minute that are forced into buying at the worst times – don’t let that be you. Request a Quote from Smart Currency Exchange below or give a ring today to discuss your options!
A while ago I put together a short guide on QROPS or Qualifying Recognised Overseas Pension Scheme – you can still get a free copy of this by dropping an email to France@OverseasGuidesCompany.com and it will be forwarded to you.
I mentioned that it was announced in April 2006 that individuals with UK pension rights who have, or will, become non-resident in the UK for tax purposes could move their pension benefits out of the UK to a Qualifying Recognised Overseas Pension Scheme - QROPS. This could be seen as an International Pension or Offshore Pension and a QROPS can have significant tax and investment advantages for people who are no longer resident in the UK for tax purposes.
If you have been resident in the UK for tax purposes during the last 5 tax years then the QROPS rules should, for the most part, correspond to the rules governing an authorised UK pension scheme. After 5 years local rules can be adopted, which can be more flexible, for instance a transfer to a Guernsey QROPS would allow residential property investment, member loans and death benefits to be paid without tax deducted.
Now, as well as QROPS, there is QNUPS or Qualifying Non UK Pension Scheme. This is a qualifying non-UK pension scheme, established in February 2010 by a new UK HM Revenue & Customs (HMRC) statutory instrument. It is a perfectly legal trust structure for retirement and estate planning, approved by UK law, and it creates significant opportunities for British expatriates to save local taxes in the country in which they are tax resident as well as UK inheritance tax (IHT).
The main difference between QROPS and QNUPS is that QROPS is specifically designed for transfers from existing UK pension schemes, whereas transfers into QNUPS are from non-pension assets or investable wealth.
As long as the criteria for QNUPS are met then any payments into the scheme, or on the death of the pension holder, will be exempt from UK inheritance tax. QNUPS is particularly attractive to non-UK residents who want to mitigate local death taxes or potential wealth taxes in the country in which they are tax resident and UK IHT should they be UK domiciled, non-UK domiciled but may return to the UK at some future date or if they are simply unsure of whether they are non-UK domiciled or not.
As a pension scheme, a QNUPS is very tax efficient in most countries as it can avoid both local wealth taxes as well as succession taxes on your death. It also avoids local succession law.
QNUPS allows retired expatriates to continue to put money into a pension scheme:
Firstly, there is no maximum age at which you can invest in a QNUPS
Secondly, you do not need to have any earned income from an employment in order to make a contribution
Thirdly, there is no maximum contribution that can be made into a QNUPS.
The rules are sufficiently flexible to allow someone who is 85 years of age and has been retired for 25 years to put large investments into a QNUPS and immediately create significant tax advantages for themselves.
The benefits of QNUPS for retired British expatriates:
A QNUPS is a pension scheme trust and, as such, you are entitled to take a cash lump sum and income during your lifetime, with the remainder of your fund able to be passed to your spouse or heirs, free from all taxes, on your death.
The following advantages are available to you through a QNUPS:
As a pension scheme, a QNUPS is very tax efficient in most countries as it can avoid both local wealth taxes during your lifetime and succession taxes on your death
A QNUPS also avoids local succession law, so that you are free to choose exactly who inherits your money and in what percentage
Income can be taken from age 55 (after 6th April 2010) or it can be deferred as it does not need to be taken until age 75. In certain countries it can be paid in a manner where a significant portion can be paid to you tax free
When income is taken it is drawn down from the fund, thus leaving your scheme assets invested. Otherwise the assets grow free from tax
On death, the value of the QNUPS will be exempt from UK inheritance tax and local succession taxes
A QNUPS offers considerable investment flexibility and choice. Furthermore, your assets can be invested and any benefits taken in a currency of your choice, giving you the opportunity to remove the currency risk
The trustees of a QNUPS have no reporting obligations to HMRC unless the scheme also holds any assets transferred from an authorised UK pension scheme and therefore the problems of holding residential property in a pension are removed.
You can have both a QROPS and a QNUPS
QNUPS and UK inheritance tax
To repeat, a QNUPS will escape UK inheritance tax even if you a UK domicile. You do not have to wait seven years to avoid the tax or have to give the assets away, so you and your spouse/partner can continue to benefit from the assets.
When holding a QNUPS, it allows individuals to keep investing their money into the scheme after they have taken their lump sum, for as long as they wish to. This differs from a QROPS in that there, once you have taken the lump sum, you just receive an income from the fund that is left.
Any expat with a QNUPS can now leave the balance of any pension fund remaining on their death to their family or loved ones without fear of the UK taxman, regardless of residence and domicile.
The legislation lets UK expats or overseas nationals with UK pension rights invest in a pension scheme at any age with no top limit.
It also has benefits like no obligation to buy an annuity or alternatively secured pensions (ASP), no maximum contribution threshold and no requirement to have earned income from an employment.
A QNUPS also holds the flexible tax and investment benefits of other offshore pensions, like a QROPS. Investments and cash draw-downs can be made in a number of major currencies to hedge against exchange rate fluctuations.
A QNUPS can also be established in a stable, low tax jurisdiction regardless of where the pension member lives.
What’s the difference between QNUPS and QROPS?
A QNUPS has no Double Taxation Agreement between the UK and the country where the QNUPS is therefore it has no reporting requirements or obligations to HMRC
A QNUPS is a Qualifying Non UK Pension Scheme
A QROPS is required to report to HMRC for the first 5 years as per the Double Taxation Agreements in place
Existing QROPS can be transferred into a QNUPS as a more tax effective investment
As you can see, all this can be very complex. I have repeated myself above in order to give you a good broad outline of the scheme, but you really do need to get first class advice this that takes into account your personal situation and requirements and the very many issues raised.
The OGC Resource Centre has services that they can recommend to you so please give them a call if you require help. These are professionals that we at the OGC have personally sourced and checked or companies that come highly recommended by other OGC readers. This is a free service and you are under no obligation to use them so why not give it a try? You have nothing to lose – give them a call on 0207 898 0549.
Are you Protected?
As an owner - or a potential owner - of a home overseas, you will already understand the importance of protecting your valuable asset.
Until now it has been hard to find an insurer who provides comprehensive protection combined with a flexibility that covers all eventualities. For instance, do you have the cover for legal liability for domestic employees – jad you even thought about this? And if you let the house out, what restrictions are in place, if any? Are the tenants covered – and are you if they should find fault with your house?
If your insurance policy has been placed through an insurance company abroad it is more likely that you simply do not know - but you can change all that!
The answer is a specialist in foreign property insurance that provides a plain English property insurance policy, underwritten by Lloyds of London and administered in the UK via helpful and knowledgeable staff.
I am delighted to tell you that we have found such an insurance provider that provides comprehensive cover against all eventualities for holiday homes in more than 40 countries. Whether your home is occupied or not, or let short term or long, their policies are ideal for property abroad - their product is flexible and designed to meet your specific needs.
Every policy offers a host of benefits, but one of the key advantages is the UK-based English speaking team that resolves any problems that may arise. In addition, all policy documentation is written in English, so you know exactly what you are getting.
Their cost effective policies provide far wider cover than most standard European policies. Add £5 million worth of essential public liability cover, which is important for anyone who lets their property - particularly with today’s trend toward litigation - and you have truly comprehensive cover at a very competitive price.
Don't risk turning you dream home into a nightmare by not having the right insurance cover - for more information please contact me at 0207 898 0549 and let’s have a chat. Or go to the link below and fill in the insurance resources form. I will phone you to discuss this very important aspect of your property abroad.
Well…we have simply masses of feedback from people who have already used our services, so here are what a couple of people had to say:
“…Let me say how happy Philip and I are with your [OGC Resource Centre] service. You have opened so many doors for us….I like to take things one step at a time, to fully take on board every situation, but I could never have been prepared for the multitude of options that you have presented us with. …You can be sure that we will be using your recommendations because we are gaining more and more confidence in your company and that is all down to the interest you take and the advice you give.”
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"Having found the forum, subscribed to the free newsletters & purchased the Guide to purchasing property, it was amazingly easy using the tips & suggestions, to define my requirements & establish my strategy for what I really wanted.
Then once introduced to the Guides Company's network of friendly, helpful associates, everything fell into place. And this despite some very attractive, but potentially risky, alternatives which I could have easily tempted into. However, I had a plan to keep me on track & knowledgeable friends to draw advice from. I have now successfully purchased a unique property, which I believe I will enjoy during my future retirement in a friendly to you, your colleagues & all your kind associates & their unique way of working. Best regards, Brian Dorey."
Just pick up the phone at 0207 898 0549 and the OGC Resource Team will be happy to help you. The team is available Mon-Fri from 9am to 6pm. You are under no obligation to use any of the recommendations and this service is absolutely free at the moment, so give them a ring today or complete the form at:
The media is filled with doom and gloom, but just because the economic outlook is a little on the gloomy side it does not mean you have to postpone your plans to either buy a second home or move abroad. On the contrary, it actually couldn’t be a better time to buy, providing you do your sums correctly, buy in the right place and use reliable, professional people to help you.
Let the Guides help you with all this – and more. Every step of the buying process is clearly and simply outlined, starting with the initial idea to buy all the way through to areas, how to buy land, investment options and many top tips. What is more, there’s a money-back guarantee if you don’t like the Guide so you have nothing to lose!!
The Guides are written by OGC staff members who know the country intimately and in many cases own their own homes there. They cover Cyprus, France, Greece, Portugal and Italy plus there is a wonderful Emigration Guide that would benefit anyone thinking of moving abroad on a permanent basis. The Guides are utterly honest and take a straightforward, no-nonsense approach to the property buying process and all the other aspects that such a move will raise.
This is what Eric and Mary White wrote:
I am sure it is through your efforts that many people who would have given up the idea of having a home or emigrating abroad have only succeeded by following the path through your Guides. Also your follow-up support has made it possible; I am just at the beginning of the long path but with your help I know we will end up living in our tranquil surroundings in our dream home,
For your continuing support Mary and I thank you,
Eric and Mary White
There are many steps that need to be thought out in advance, but with the help of the Guide you will succeed! Just order your copy now at http://www.FranceBuyingGuide.com/guide.htm. You are also welcome to phone the OGC Resource Centre where you will find a team of friendly and helpful people happy to assist with your queries. The number is 0207 898 0549.
To get more information on each guide on offer, please select the country below:
The French naturally have a different way of doing things and life is generally lived at a slower pace than we may be used to. Most shops – even large stores – close for a couple of hours at lunchtime and Mondays are like Sundays used to be in the UK, ie a day of rest. Although at first this may be slightly frustrating, the key is to go with it, embrace the differences. I can tell you from personal experience that after a while, as with most new experiences in life, one adapts and begins to enjoy the differences.
For a complete guide to life in France including an overview of every area and the answers to many of your questions on what it is really like to live here, you could do worse than arm yourself with a copy of my France Buying Guide. This has become like a bible to many of my readers, don’t even think of going to France without one!
Need any help – with estate agents or suchlike? Call the OGC Resource Team 0207 898 0549 - there is no cost or obligation to use our recommendations.
Our renovation story
As we press on with our house renovation, hand in hand with the sun becoming ever warmer down here, we have welcomed our first guests in our new home so have been out and about a fair bit in the last few weeks. However, the renovation continues apace and it will not be long before we have 2 ensuite bathrooms up and running and hopefully permission to make doors out of 2 existing windows looking on to the garden. Little by little, it is coming along but the sun and stunning light down here in the south of France do, I admit, tempt us to take some leisure time out too to explore our wonderful countryside. When did you last wander in a field of poppies? Come down to the south of France!
I love to hear your stories, comments and answer any questions you may have. We pride ourselves on offering a totally personal service here at the Overseas Guides Company, in this world of answering machines and automatic responses. We have helped many readers achieve their dream of buying in France and can help you too. I look forward to hearing from you.
I leave you with a lovely testimonial from one of our readers:
We would like to thank you for all your help and to say that we think that you are amazing!
What a wonderful service you give to potential house buyers and to think you do all this for free, not like some companies I could mention. We were actually approached by one company after we visited the show at Olympia who wanted to charge us over 8,000 Euros just for arranging visits and a hand holding service like yours.
We will keep in touch and let you know when we are actually moving, which should be around the end of January next year.
Once again may we say a big thank you.
Kind Regards
Dave & Linda Griffiths
Until next time, I urge you to continue to pursue your dream and come to France!
