France is an exciting destination for expatriates. It offers a great quality of life along with abundant employment opportunities. However, migrating to a new country demands a comprehensive understanding of the financial implications. Here is a look at the cost of living in France as an expat.
Preferred destination
France is a much sought-after destination for many reasons. It ranked 11 on the list of the most favored expat destinations in The InterNation’s Expat Insider Survey 2019. France scores highly in terms of the quality of life, healthcare, childcare, job security, and other important parameters. Migrants moving to France from developing nations often earn several times what they would in the same jobs back home. Foreign workers use trusted channels such as the Ria Money Transfer App to send remittances back to their families.
It is also a great idea to migrate to France with family. Aspiring migrants look to France in search of better incomes and better lives. The National Institute of Statistics and Economic Studies reported that there were 6.5 million expat families living in France in 2018. This constituted to 9.7% of the country’s population of 66.9 million.
Living expenses
A high standard of living comes at a cost. When moving to Paris, Nice, or Lyon, expats must be prepared for the prices in these cities. The Cost of Living Report 2020 compiled by Mercer ranked Paris at 50. It is placed several spots below New York City (6), London (19), and Dubai (23). Lyon is ranked 123 on the list. Living in Paris or Lyon may be cheaper than these locations. However, it is by no means cheap when coming from a developing nation.
Monthly rent for medium sized houses in France falls in the range of EUR 1,200-2,000 (national average). Utility expenses for a family range between EUR 150-250 per month. These can vary with city (climate), family size, and type of house (quality of insulation). Dining at a fast-food restaurant can cost EUR 10. A meal at a local restaurant costs about EUR 15. Fine dining in a nice restaurant can cost between EUR 30-60 per person or more. Having a TV in France requires a license which costs EUR 139 per year.
Education & childcare
France has a robust education system. The French government pays tuition fees at public schools, which makes education free. The language of instruction in public schools and most private schools is French. Expat families can expect to pay EUR 2,500 per year to send a kid to private high school. University fees can set you back by EUR 2,500-10,000 per year. It is a good idea to inquire with your employer if relocation cost covers education.
For families with infants France offers state-funded crèches. Crèche is a word of French origin. The French state picks up 80% of the crèche fees, which is a relief for expat families. Like native parents, expat parents are entitled to receive child benefits. The French state offers EUR 120 per month for up to 2 children and EUR 275 for three children. For every additional child a family can receive another EUR 155 per month.
Healthcare
France provides high-quality healthcare to its citizens as well as expats. It ensures swift access to medical help at affordable rates. Expats living in France for 3 months or longer can take advantage of the excellent healthcare policy. The average monthly cost of basic health insurance is EUR 10 per person. Private insurance costs EUR 45 per person per month. These numbers vary with the type of the insurance plan. The French healthcare system covers 100% of hospitalization expenses in cases of major illnesses. For more common issues it picks up 70% of the tab for doctors’ fees and 80% for hospital bills. The average cost of a doctor visit is about EUR 23 without insurance cover and EUR 6.60 with cover.
Taxes
Under the French taxation regime expats are liable to pay taxes on incomes earned from French sources. The taxation provisions in France can seem complicated to expats. The levy of taxes depends on several factors including the level of income, marital status, and number of children. However the basic blueprint remains the same. For all incomes earned in France expats must pay 20% tax. For annual income in excess of EUR 27,519 the tax rate rises to 30%. Expats are liable to pay property tax from the sale of property in France. Expats from elsewhere in the EU have to pay 19% of the sales proceeds. Those from outside EU must pay 36.2%. Profits earned from savings and investment gains are taxed at 30%.
France has tax treaties with several countries to avoid dual taxation. These can lead to substantial savings.
About the author:
Hemant G is a contributing writer at Sparkwebs LLC, a Digital and Content Marketing Agency. When he’s not writing, he loves to travel, scuba dive, and watch documentaries.
