Turban Explorer

I wonder if anyone could direct me to a standard basic guide to setting up home in France? I'm thinking of spending just less than half the year there and buying a property in the Herault region. If there's been a previous list of rates, costs and taxes I may incur I'd be very grateful. Would there be any obvious dangers to leaving a property vacant for long periods?

Chatter Static

There are lots of books on the subject although some do tend to be a little out of date it's been covered no end of times in the forum so a little searching will give you all the information you need as does Google.

http://www.french-property.com/guide...-estate/legal/

Break Ins are on the up for vacant properties and the biggest issue you notice when looking at empty houses to buy is damp and mustiness.

dmu

Hi, and welcome to the France forum! Google "The Connexion", a monthly newspaper which has published several booklets on all aspects of living in France.
You should find out about healthcare coverage. You don't say whether you'll be working when in France, but if you work from home as a self-employed, you'd have to register with the French authorities and you'd have social security coverage by dint of paying contributions.
I live in a village in the north of rural Hérault and there are a good few second-homes in the area which are left vacant for long periods, without problems of burglars, but I can't speak for towns like Béziers or Montpellier.
Hope this helps a little!
P.S. Saved you the bother: http://www.connexionfrance.com/,
click on Helpguides

Turban Explorer

Thank you for the links.

We wouldn't be working in France and we're pretty young so health stuff isn't an issue. My partner and I are English and Australian citizens and I was assuming I would continue to pay tax in the country where I am mainly resident? Or does owning a property in France attract tax liabilities even though I'm resident less than 180 days?

I know its a 'how long is a piece of string question' but what sort of discount could I expect making an offer on a property? 15% lower than asking price for instance? There does seem to be a huge amount of property for sale in the area I was looking at. I guess there isn't really any investment opportunities other than renovating. Does french property rise in value? Is it re-sellable? From school trips I sort of remember the French being a nation of renters not homeowners...

Additionally if I was based around the Perpignan area would there be enough social life for two people just turned 40? I speak some French but my partner can barely speak English...!! I was hoping to jet back to London quite a bit too on cheap flights. We're currently living in Australia but are pretty keen on returning to Europe now for some culture and decent food!

dmu

You may not consider health to be an issue, but if you had an accident or needed medical attention for any reason, you'd have to pay 100%. I'm not even sure that one is allowed to remain so long in France without healthcare coverage. Maybe you should start another thread on the subject? Also, if you aren't married, you'd need separate insurance...
If you buy a property, you'll be paying the Taxe Foncière on it (annual Property Tax) and maybe Taxe d'Habitation, too (Occupancy Tax). Once again, if you aren't married, you should be aware of the French Inheritance Tax for those not legally bound - the surviving "companion" must pay 60% of the value of the property in Tax! This normally means the survivor has to sell up in order to pay.... Others more in the know who won't necessarily have read this thread will give advice if you post another new thread.
Perpignan is a pleasant town, between sea and mountains, but I've no idea about social life there! You could ask on a dedicated Languedoc-Roussillon form (AngloInfo) if no one here can help.
All the best!

Tweedpipe

Please be advised, even for relatively young folks, 'health stuff' is an issue, and should be given high priority.
In the case of an unfortunate accident, or sudden serious illness (more common than you may realise) you could face some very high bills if not covered by the 'system'.
You ask the questions, 'Does french property rise in value? Is it re-sellable?
Property prices here in general have plummetted, and may have stabilised - but I'm not sure that will be maintained over the next 3-4 years. Re-sellable? Often with great difficulty depending on location. It's been a buyer's market for a number of years, and I see that continuing. In recent years some folks may have been lucky in making some money after property renovation, but I believe they are in the minority. It's certainly not something I would recommend.
According to the press, some 3000 FNAIM agencies went out of business with a loss of almost 10,000 employees during 2012. (I've yet to see official stats for 2013). Times are tough, and - according to my crystal ball - will get tougher. Having said that, the Jan sales (non-property related) appear to be doing well, so some folks clearly still have a few spare euros.

Good info from DMU regarding buying property for those couples who are unmarried or not paxed: tread carefully.

cyrian

I would suggest that you consider renting a property initially to allow you address each issue one-at-a-time and discover how life in France is for you.
If you do any work at all in France [ even just answering the phone] then you must register a business in France.
You need to check the tax arrangements between France and Oz - I assume that the 183 day rule applies and any taxes that you pay in France would be declared in Oz along with any tax paid. You would not pay the tax twice.
40-year olds do need healthcare - broken limbs; cancer; pregnancy?? just for starters. France is a pay-up-front healthcare system.
What visa requirements are there for your partner?
Houses in France can easily take 2 years+ to sell and the market is not like that in the UK because the prices do not rise as much as in the UK.
Good luck

Turban Explorer

My partner is English too so no visa requirements for him. I've tried a bit of reading on the tax d'habitation and ownership. It seems rather confusing. Is it dramatically different per area or is there an amount that could be estimated roughly on say a 200k euro house? Thanks for everyone's help!

dmu

Sorry, but I understood from your post #4 that your partner wasn't British!
You mentioned "the length of a piece of string" earlier - no one can tell you how much the Taxe d'Habitation will be: it depends on many factors. You'd have to ask the vendors to show you earlier bills and even then, if they're of a certain age and with a low income, they might be exempt.
If you're still thinking of Hérault rather than Perpignan, and want to fly low-cost to London, Montpellier has flights to Gatwick and I believe flights from Béziers go to Luton....

Chatter Static

It's varies from area to area and is cheaper in the countryside typically you can always ask an immobiliser "Estate Agent" what it is for a house if you are interested as it is something they normally make a note of.

Something else that varies from area to area is separate payment for refuse collections our last house it was included in the taxes here we get a separate bill for it.

Turban Explorer

I've just re-read that. Sorry - we both have dual English and Aussie citizenship.

EuroTrash

As long as you spend less than 6 months here, don't work, and have your main home elsewhere, the French taxman will not want to know you.
If you're resident in the UK and entitled to an EHIC, that will be your health cover. If not, travel insurance is all you'll need, after all you'll just be here on holiday.
As for property taxes and so on, it depends entirely on the kind of property you buy, there's plenty on the market as you say so you should find something to suit. Find out what the taxes are, they vary from commune to commune - every commune has to balance its own books, so the taxes depend on how much it costs to run the commune, how thriving it is or in other words how much local business there is paying local business taxes, and how good the commune's administration is at keeping costs and therefore taxes down. Consider how much maintenance would be required if it's left empty for six months - would you come back and find the grass waist high and the house full of damp because it's an old property that needs to be lived in and kept heated? Be sensible.
Also be sensible about inheritance, if you intend to keep the property indefinitely. If you buy as an unrelated couple, or if either of you has children from previous relationships, there could be problems. French inheritance laws are something else.
Perpignan is a nice area, and if you spend time there you should be able to settle in and get a basic social life together.
It's unlikely to turn out a great investment, but if you have the money and you want to spend it on your own little peace of heaven, why not, you only live once. Enjoy.

Novocastrian

Or, just possibly cover provided by the employer back in Oz. Unlikely, but I have it from Canada.

Agreed it's impossible to predict. But (although I've no idea about equivalent taxes in Australia) the combination of Td'H and TF is about one sixth of what we pay for property tax in Canada. In other words it's not huge.

As you know, we're in the same position as the OP. We leave the boiler thermostat set at 8C over the winter (in Normandy). The (very old) house smells a bit musty when we return, but it airs out in a day or so.

Of course leaving the heating on does cost something and was impossible to predict the first winter. It turned out to be about 1000 euro in total.

I don't know though whether central heating is common in Perpignan etc.

Also, you're right to mention the grass & garden maintenance in general. We have a local jardiniere who comes when he judges it necessary at 25 euro per visit.

All these things do add up and it's down to the OP as to whether they can afford to do this.

Luckily, we can.

Turban Explorer

Thanks so much for all that. I see on french property.com many of the houses for sale have the tax fonciere amount attached. Provided the taxes d'habitation and fonciere don't add up to more than say 2000 per year that seems reasonable.

We don't have or plan to have any children and the house would just be in my name. I was thinking of pitching an offer on a house 20% below asking on the basis that it certainly looks like a buyers market. I hope that's not too cheeky. I imagine it's easy to find english speaking notaires to act for me? Are structural surveys common?

Are there any issues to importing cars from the UK? Or are french cars pretty cheap? In terms of having long absences from France are house sitters a possibility?

Novocastrian

I'd think less than 2000 euro is likely. I pay about 1100 for both annual taxes.

On the inheritance thing, look at dmu's post upthread. An offer 20% below asking would very likely be unexpectedly generous of you. I'd start at 30% below asking (especially if the house has been on the market for a while and needs some renovations.

You live in Oz? Why import a car from the UK? Second hand cars in France are, admittedly, a biggish bit more expensive than in the UK and while the the "issues" with importing and registering them are not insuperable, who needs the hassle just to end up with an unsaleable RHD vehicle which you can't overtake things in?

I bought a 2008 Citroen C4 last year for just under 5k euro.

As to house-sitters, I don't know. I'm sure it's possible, but we have relatives, a gardener and a heating maintenance engineer who pop in now again.