What UK Expats Need to Know About French Law
Friday, 13 September 2024
There's much to look forward to for Brits embarking on a new adventure in France. From indulging in delicious French cuisine to embracing the rich culture, learning the history, and even mastering the language, the experience can be incredibly rewarding. However, the differences between France and the UK extend beyond food and language; expats must also navigate an entirely new legal system.
The law will impact every aspect of your new life in France, from buying property and getting married to paying taxes and planning your estate. The complexity is further compounded when dealing with cross-border matters and balancing both UK and French laws. This guide aims to help you understand the French legal system and how it differs from the more familiar UK system. By gaining this knowledge, you'll be better equipped to manage your legal affairs confidently and effectively in your new home.
Key Legal Areas for UK Expats
There are many differences between French and British law, including the fundamentals of the legal system itself. However, while the differences between the French civil and UK common law systems are fascinating, they mostly won't affect daily life. We've outlined the key areas of law you are most likely to encounter as a UK expat in France. This guide highlights what you need to know, including the most prominent differences between French and UK law.
French Property Law
Navigating property transactions in France requires an understanding of local laws and regulations. Buying property in France involves several stages, including signing a preliminary contract (compromis de vente) and completing the sale with a notaire. A notaire is a public official who ensures the legality of the transaction and the proper transfer of ownership. UK expats should also be aware of property taxes such as taxe foncière (property tax) which is annual charge that property owners must pay. Our guide on property law in France explains more about French property law.
An interesting option for UK expats buying property in France is to set up a Société Civile Immobilière (SCI). An SCI is a type of property-holding company that offers various estate planning and tax benefits and a flexible structure for joint ownership. Our guide, "Using a Civil Company (SCI) for Property Investment in France," explores SCIs in more detail.
French Taxation
Understanding French taxation is crucial for managing finances effectively. France has a progressive income tax system, and UK expats must understand their obligations under both UK and French tax laws. The impôt sur la fortune immobilière (IFI) is a wealth tax that applies to real estate assets. One significant aspect to consider is the UK-France Double Taxation Treaty, which aims to prevent expats from being taxed twice on the same income. It's important to consult with a tax advisor to navigate these complex rules.
Learn about common expat tax mistakes with our guide, "Tax Compliance for UK Expats in France: Avoiding Common Pitfalls".
French Family Law
Family law in France covers marriage, divorce, and child custody and differs from UK practices in many ways. Understanding the legal requirements for marriage or PACS (civil partnerships) in France is essential. Divorce procedures and grounds in France can differ from those in the UK, making it crucial to understand the local processes. French courts prioritise the child's best interests in child custody cases, similar to UK courts, but the specifics can vary.
These areas are complex in their own right, but you can better understand French family law with our guide, "French Family Law Explained: Marriage, Divorce, and Custody."
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French Succession and Inheritance
Navigating French inheritance law can be complex for UK expats due to forced heirship, which mandates that a portion of the estate must go to certain heirs, typically children. Unlike the UK's testamentary freedom, this limits how assets can be distributed. UK expats can opt to apply UK law to their estate under the European Succession Regulation, potentially bypassing forced heirship rules. However, even electing for English law for property won't escape forced heirship. For immovable property, English law defers back to the jurisdiction in which the property is located.
To ensure your estate is distributed according to your wishes, it is best to create a will that is enforceable in France and the UK. We have some helpful information on creating your will in this guide, "Writing a Will in France: A Step-by-Step Guide for UK Nationals".
French Law for Expats FAQs
Are French marriages and divorces recognised in the UK?
Yes, marriages and civil partnerships conducted in France are recognised in the UK if they follow the correct legal process in the country of marriage and comply with UK law. Similarly, divorces granted in France are recognised in the UK, and divorces obtained in the UK are also recognised in France.
Can I use my UK will to distribute assets in France?
If you opt to create a will under English law, it must still be validated by a French Notaire, who will then oversee the distribution of your French assets in accordance with English law and procedures. Engaging a French-qualified Notaire with expertise in UK law is crucial to ensure this process is managed effectively.
What assets are exempt from French wealth tax?
The French Wealth Tax (IFI) is limited to land and buildings and excludes other assets like investments, vehicles, and jewellery. Additionally, there's a five-year IFI tax exemption for foreign assets. Upon becoming a French resident, you are not liable for wealth tax on foreign properties for the first five years of residency.
Speak with a French Law Expert
Understanding the basics of the French legal system is crucial for UK expats living in France. This knowledge helps navigate legal complexities, ensure compliance, and protect your rights. However, many legal processes require an expert legal professional. Speak with our team, including a French-qualified notaire, for expert advice and legal services.