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Dealing with the financial implications of moving abroad

financial implications of moving abroad

Relocating to France is a life-changing experience for anyone. Those who do not have a good grasp of French might find the experience more challenging than most. Other than learning a new language, individuals also have to adjust to a completely new culture and way of life.

Before moving abroad, to France or any other country, it is important to have an idea of the financial implications involved. While relocating is a stressful affair, it can be made simpler by arming oneself with adequate knowledge of how the country’s financial system works. Prior knowledge of the stipulated financial policies and requirements can help many people to avoid making potentially costly mistakes.

Some of the key financial aspects to consider when moving to France include:

Sending money to and from the country

Those who relocate to France still need a dependable and trustworthy system of sending and receiving money from family and friends. When looking for a money transfer system these people often ask themselves: “How long does it take to transfer money to countries outside France?” One of the most reliable money transfer companies, Trans-Fast, has an answer for that question. This company offers a fast, secure, convenient and affordable way to get money to friends and relatives in most parts of the world.

By signing up for an online account, an individual can transfer or send money at the click of a mouse. The recipients can then choose to have the cash delivered to their doorsteps or have it deposited into their bank accounts.

Changes in the currency rates

Another issue that those moving to France have to contend with is the different currency exchange rate, especially if the individuals in question are relocating from countries outside the Eurozone. Thankfully, nowadays, France has different online systems to make it easy for people to buy or sell currency directly. Alternatively, individuals can opt to do the same using banks or brokers in the country.

The latter buy currency at what is called the “interbank rate.” Since this is the wholesale price for buying huge quantities of cash, the banks or brokers usually offer sellers good exchange rates. However, individuals still have to ensure that they can effectively negotiate to benefit from the best possible rates.

Bank accounts

Bank accounts are crucial for anyone settling and seeking to do business in France. One advantage of having a bank account is that once individuals become residents, they can gain access to regulated bank saving schemes. The interest earned in these schemes can grant exemption from certain taxes and social security contributions. The country is well served by eight main high street retail banks with countrywide branch networks. Most people are surprised to learn that the largest bank by number of customers is the French Post Office, referred to as La Banque Postale.

The taxation system

Taxes are a major part of life in France. The taxation system is quite complex, and a newcomer to the country can easily get confused. There are numerous taxes to be paid annually, and individuals are responsible for filing their own tax returns. Failure to file tax returns by the given deadline can attract a surtax of ten percent.

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