Financial implications of living in France

Although VAT can cause a huge dent in the pockets of French residents, living in France is compensated by the fact that most consumer goods are cheaper in France than in Britain. “French retailers are among the world’s most competitive and have smaller profit margins than those in many other countries,” explains David Hampshire, author of Living and Working in France.

Expats can save from pottery to perfume and clothes to cars. Food prices- both in restaurants and the supermarket- are also lower. Prices depend greatly on the type of restaurant. Dishes are relatively cheap, and restaurants compensate by increasing their profit margins on the cost of wine, beer and other beverages.

Unlike in Britain, small specialized shops where quality is given priority over price are doing well and account for some fifty per cent of the food trade. Supermarkets and hypermarkets are the most inexpensive place to buy groceries, including beverages like beers, wines and spirits.

Those planning to move to France will be pleased to know that petrol is also cheaper in the country. If it costs £50 to fill up in the UK, it will only cost about 50 euros in France. This can bring huge savings even with the fluctuations in exchange rate. However, some residents claim that these so called savings can be deceptive. “As France is four times bigger than England with roughly the same population, distance between friends, shops, schools, etcetera can be correspondingly much greater, so fuel costs are considerable,” reveals Melanie Griffin, a Brit who moved to France.

As for the cost of utilities, it is generally comparable to the rates in the UK. Thanks to nuclear power, electricity bills are lower in French households. The water bill depends on the amount used as it is measured by a water meter, but prices are comparable with those in Britain.

For French property owners, property tax and residential tax are inescapable expenses. They pay for local services and are determined at a local level. They often compare favorably with their British equivalent, the council tax. Taxes are generally higher in urban areas than in the rural regions although levels vary greatly between different localities. Property taxes in France are also determined by the size of the property. It is worth keeping this in mind when considering buying a property.

Those working in France will discover that French income tax is lower than in Britain. However, those planning to work in France must remember that when the income tax is added to Social Security and other indirect taxes, the burden becomes much greater. The Social Security payments entitles the recipient to basic health coverage, although it does not cover one hundred per cent of the medical expenses.

Although goods and services are relatively cheaper in France, those thinking of living in France must remember to consider all the less obvious expenses when calculating their cost of living. “France has become, more or less, on a par with England as far as the cost of living goes,” says Griffin. It is therefore advised to look beyond the stereotype that living in France is inexpensive in order to realistically budget day-to-day expenditures.

Posted on: France

News by country

Financial implications of living in France

Related articles

Recent Posts

News archive