Foreign Perspectives

Archive for the ‘Relocating’ Category

Most French banks are what would be termed building societies in the UK and consequently the banking scene is fairly different in nature in France.

There are only two proper banks, Societe Generale and BNP Paribas. These both operate nationwide networks but their branches are largely confined to the towns so they may not be entirely practical if you live in an isolated village.

As in other countries the Post Office and co-operative movement operate their own banks offering some advantageous accounts which we’ll be covering separately.

The majority of banks are effectively small regional building societies. For example, the Credit Agricole you see in Normandy is a totally different outfit to that which you’ll see in Paris. Although it is possible to open an account in one region and operate it via the branches in another region, this will entail delays in having your deposits credited and limits the facilities you have access to. So, I can’t use the deposit machines in Perpignan with the card from my account in Normandy.

The other banks worth looking into are those of the various supermarkets. By and large these are re-branded versions of some of the banks covered above but not always, for example Auchan operates its own bank. Generally speaking, the charges for these accounts are lower.

The main postal banks are those operated by Axa (a full-service bank) and Ing (savings accounts only).

One difficulty that you will have in opening any of the accounts is that you are usually required to provide proof of income. If you are living in France, they will ask for proof of a French income and this can take several years to acquire so it’s generally better to open an account with one of the banks before you move here or very shortly after you get here.

At first glance, the shopping district in Perpignan seems to be quite small and compact. It’s mostly a pedestrian area and even those areas where it isn’t, the streets are narrow enough to really slow down both the speed and the volume of the traffic considerably so it ends up with a very calm feel to it.

After a while though, you realise that there are a whole lot more shops than you first saw because many are set back from the street in little courtyards like the one you can see here. In fact, we’ve only really started to discover the true size of the shopping area recently as many of these little courtyards contain not one but often four or five of the little shops.

They’re all different too. This one is relatively ordinary in that it’s effectively just got a longer than normal entrance hall but others come with statues, waterfalls, and the like. The range of shops is much greater than those directly on the main street where you’ll generally find the international shop brands. It’s in these little courtyards that you find the more unique shops.

Of course, the biggest plus point of this arrangement is that in the Summer, the courtyards are a good deal cooler than the street. Airconditioning isn’t that widespread here at the moment so these little courtyard shops and restaurants provide a welcome break from the intense July and August heat.

Anyway, if you’re here on a visit, keep an eye out for them and explore some of the courtyard shops of Perpignan.

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.