Foreign Perspectives

Archive for the ‘Relocating’ Category

One wonders whether that title will attract the attention of the French authorities but it probably won’t.

We’ve been living here for over three years now with no residence permit (Carte de Séjour) for Wendy and now pretty much accept that she’ll almost certainly never get one. Now, in every other country that would be something of a problem in that Wendy would be deported indeed she would already have been deported. Not in France though.

How come we can do that?

Well, what we did was apply for her Carte de Séjour within 90 days of us arriving here. Actually, we applied for the European version of that ie the Carte de Séjour Europeenne but that wouldn’t really have mattered as it turns out.

The CdS is something of an unusual beast in that the only documents that the authorities are legally allowed to ask for are a passport and a proof of relationship. This being France, they actually asked for around 30 separate documents which we refused to provide and there things stopped. We received no further contact from the Prefecture (who are responsible for issuing it) but did enquire a few times and they said they were awaiting for documentation from us (ie the documents that we had refused to supply).

About a year later, we thought we’d have another go. Different staff this time, and we managed to get somewhat further, eventually ending up with a letter from OMI (the immigration department) asking for EUR 220. As noted above the only things that they can legally ask for are a passport and proof of relationship, there’s no mention of money in the European law because they’re not allowed to ask for any. So, I sent off a letter pointing this out. No response.

Late last year, we made a start yet again. Turns out that they had lost the file (although, funnily enough, they seemed able to refer to some information that it contained!). Anyway, different staff again and we were assured that the permit was on its way. The temporary permit arrived in due course and, as it’s about to expire, we enquired. That in turn triggered off the letter from OMI with a bill this time of EUR 275 so I must dig out my own letter again.

So, if you fancy being an illegal alien in France, it’s really very easy. Once you get here, apply for your Carte de Séjour but leave out a few documents that they’re asking for. This totally throws the system apparently as we were told several times that our file had been put to the one side awaiting the documents which, of course, were never going to arrive. Eventually, your file is put away and nobody is ever likely to follow up on it after that happens.

This relies on one aspect that seems innately French: they obey authority and said authority assumes that it will be obeyed ie if they demand some document, then obviously it will arrive. Step outside that framework and it totally throws the system.

So, if you fancy being an illegal immigrant in Europe, don’t bother with the UK as they’ll deport you for sure. Head for France, apply for your Carte de Séjour but omit at least one document asked for and then just settle into life here.

We’ve been following the progress of two of the hotels that we looked at before settling on the place we’re currently running.The first of these that we saw before we met up with the estate agents was a bit large for us in that it was a 30 bedroom place though very central in Perpigian. They were only selling the business too which put us off it as well. Still, quite a thriving place that had been running since around 1850. Just over two years ago, it sported a big sign that said it had been converted into apartments which seemed fair enough as there are loads of apartments in Perpignan and they generally seem to be doing quite well. Not so the hotel though as within the last year, that plan has been dropped and they’re now doing some serious conversion work on it for yet another purpose.

Offshore banks are banks that operate in various tax havens around the world. The most familiar in the UK are the Channel Islands and the Isle of Mann but there are many based in small islands in the Carribbean.

If you’re moving abroad, it can be useful to have an account with one of these banks both to simplify your taxes a little and for the additional services that many of them offer to the expat community. None of the legitimate centres offer tax-free interest on your accounts these days but offer you two options for the interest on your accounts: 1) a withholding tax roughly equivalent to the tax that you would normally pay in your country of residence and 2) no tax but they report your income to the authorities in your country of residence.

Although no longer taxfree, the additional services that many of these banks offer can still make them worthwhile. Even the simplest of them are much more familiar with international bank transfers than a normal high street bank could be expected to be but most go beyond that offering multi-currency accounts, debit cards in a range of currencies and often expat advisory services.

On the whole, the range of services on offer increases in proportion to the increase in the minimum income that the banks ask for. A reasonable compromise with this seems to be Abbey International which offers accounts and debit cards in pounds, euro and dollars for an opening balance of £5000.

Most people will think of Switzerland in terms of “offshore” banking, but is there anything special about it? The banks there are generally more aware of the needs of international clients but this generally comes at a price. By and large, unless you have fairly sizeable amounts of money (say 25,000‚€ upwards) to deposit or invest, they probably aren’t worth it. However, even the post office in Switzerland is geared up for international clients and in this case a relatively modest amount of money (about £3,000) will get you quite economical banking.

We’ve included a list of the main banks operating in this arena in the directory which should let you choose the perfect combination of prices and services for you.

With start of April starts the onslaught of the festivals for just about every fruit, vegetable or drink you could name.The one problem with them is that you’ve really no idea in advance whether or not a given festival will be a popular one or just a few stalls trying to sell some obscure vegetable.

Even if you are intending to live the rest of your life in France, you should resist the temptation to close any UK bank accounts or credit cards. The only exception to this is, possibly, for those accounts/cards which have an annual fee.

In addition to the accounts which you already have, you may find it useful to open others as the international dimension changes how you use accounts. For instance, if you have a holiday home in France you’ll obviously be transferring money from pounds into euros much more than you were previously.

The range of accounts in the UK is massive and therefore we can only give an indication of those that you might find useful here; the reference version of this guide will be more comprehensive.

The Nationwide Building Society Flexaccount (cheque account) is a must. It gives you entirely free transfers from pounds to euro and, at the moment, is the only truly free currency exchange service. Their credit card comes close behind with free exchange on purchases.

Beyond that, if you are going to live in France, it’s useful to open credit cards with a number of card issuers. In general, you will not be able to do this if you are living in France and neither can you easily get credit facilities in France so it’s useful to have a number of UK cards as a fallback should you need it. The main issuers are Capital One, the Co-Operative, GE, Halifax, HSBC, LloydsTSB, MBNA, Nationwide and Royal Bank of Scotland (most other cards are rebranded versions of these eg Sainsbury is really Halifax). It’s worth getting an American Express credit card too as you can transfer the account to France, although as the charges in France are considerably higher you may not want to do that right away.

Cheque accounts are also useful to have. If you qualify for the HSBC Premier service, they’ll open an equivalent account with HSBC France for you which has the additional advantage that you get free transfers between your UK and French accounts with them. Barclays and LloydsTSB offer a similar (but more expensive) service though their branches are largely confined to Paris and the Cote d’Azur. The Barclays account offers withdrawals with no transaction charge at BNP-Paribas machines in France (you are still charged 2.75% on the exchange rate). I used to recommend Citibank a lot but they have increased their charges substantially and it’s not as clearly a useful account for expats as it once was.

The Nationwide account is excellent if you are in France and need to transfer relatively small amounts of money from the UK but the £500 per day (about 750‚€) limit means that it’s not practical for large amounts such as for your house purchase. You can use your own bank for this but the charges are generally quite high and the exchange rate isn’t particularly good either in most cases. To transfer more than a few thousand euros you are best to open an account with one of the specialist companies such as moneybookers; if you are going to be making regular transfers (eg paying for a French mortgage from a UK account) then HIFX offers a facility for this.

If you are retaining your house in the UK as we recommend, then you will probably need to change the mortgage to a buy to let one. It’s best to do this before you leave the UK as there are a relatively small number of brokers who deal with overseas clients.

The field of investments in the UK is even wider than the range of banks. However, most seem prepared to change your address to an overseas one. However, if you don’t yet have a UK broker or similar it’s worthwhile opening an account with one before you leave as few will open accounts for overseas clients. We’ll cover it in more detail later but at this point it’s worth mentioning that having a SIPP (Self-invested personal pension) account open is also useful.

If you’ve not yet ventured into this arena, a few useful accounts to have are the Halifax sharebuilder (which lets you buy shares monthly), Fidelity’s Funds Marketplace (which lets you buy numerous unit trusts) and TD Waterhouse brokerage. All are free to open.

As always, you can find links to sites we have mentioned in the Foreign Perspectives directory along with other similar outfits which we haven’t had the space to mention here and the reference version of this entry on our Living in France pages is more complete.

Although you can open offshore bank accounts after you leave, it’s best to open your choice from the above before you leave the UK as it can be difficult or even impossible to do it after you leave.