June marks the official beginning of summer – although the heatwave at the end of May gave us an early taste of the season. For French businesses, this is the final month to conclude key transactions and projects before the traditional slowdown in July and August. For French resident tax payers there are also a few matters to address before the summer really starts.

Most people will have by now submitted their tax return – those living in departments numbered over 55 have until 4th June and those who have engaged an accountant to do their tax returns will also be granted additional time to file. The tax statements will be available online from 24th to 31st July. For those receiving paper statements, these will arrive by post between 23rd July and 28th August.

The 15th June is the deadline for trustees of trusts where a trustee, settlor or beneficiary is fiscally resident in France, to complete the declaration 2181-TRUST2, declaring the value of the assets in the trust as at 1st January. The issue of trusts in France is one I’m often asked about. Are trust illegal in France? No. Trusts do not exist under French law, however French case law (jurisprudence) has long accepted that Trusts set up in other countries can have effect in France provided that they were created in accordance with the law of the country in which they were created, and that they do not contain any provisions which are contrary to French public policy (ordre public) especially as regards forced heirship (reserve héreditaire) – Paris Court of Appeal decision, 10th January 1970, Époux Courtois et autres consorts de Ganay. If you are the beneficiary, trustee or settlor of a Trust and this is the first time you have heard about the requirement to declare the trust, you need to first declare the existence of the trust using the form 2181-TRUST1 as well as the value as at 1st January.

Property owners have until 30th June to update the information on the buildings on their property and the occupants of those buildings on the impots.gouv.fr website if their situation has changed between 2nd January 2025 and 1st January 2026. If your property portfolio remains unchanged since the last declaration, no action is required. Only one declaration is necessary for a building and adjacent structures (e.g. garages, swimming pools etc) if they are occupied by the same person(s). Furthermore, as the review of rental values has been pushed back 3 years, landlords do not have to declare the amount of their rent received, unless they choose to do so.

On 26th May 2026, the Prudential Assurance Company (PAC) Board conducted its quarterly review of the Prufund Expected Growth Rates (EGR). The EGRs—which represent the forward-looking component of Prufund’s unique smoothing mechanism—remain unchanged for this quarter. Additionally, there were no Unit Price Adjustments (UPAs). The UPA is the backward-looking element of the smoothing mechanism; it is entirely formulaic, non-discretionary, and designed to protect investors from short-term market volatility.

After reports that a deal had been reached last week, oil prices dropped to $92 but have now risen to $96.28 the barrel on 1st June.

While we do not understate the human and political seriousness of these events, such conflicts are a regrettably familiar feature of the global landscape. Historically, long-term investors have been well-served by avoiding overreacting to short-term geopolitical shocks.

Inflation data published last week confirms that energy price pressures are increasingly filtering through to core economies. May data revealed inflation hitting 2.8% in France, 3.3% in Italy, and 3.6% in Spain. The European Central Bank (ECB) is expected to raise interest rates at its June meeting, despite visible signs of economic deceleration across the Eurozone. The composite Purchasing Managers’ Index (PMI)—a reliable metric for broader business activity—slumped to a 31-month low in May, following a contraction in the French economy during Q1 2026. Meanwhile, US forecasters now project inflation to end the year at 3.6%, marking yet another period where inflation sits stubbornly above the Federal Reserve’s 2% target.

In contrast to geopolitical events, the rise of AI represents a profound paradigm shift that will permanently alter the structure of the global economy.

The early part of 2026 saw a move away from software and information services businesses, as investors adopted a “sell first, ask questions later” approach. Time will tell as to which business models will become obsolete from the use of AI and which will see their productivity enhanced by these extraordinary breakthroughs.

For the vast majority of portfolios, maintaining a disciplined, long-horizon stance—what could be termed deliberate “inaction”—remains the soundest strategy.

Despite the pervasive negative sentiment in the financial media, all major equity indices remain in positive territory for 2026 – a vital reminder for us all to keep focused on corporate and economic fundamentals, rather than market emotion.

The coming, more relaxed, summer weeks, are a perfect time to get in touch to arrange a free, no obligations, meeting with me to discuss your personal financial situation.

In April 2026, I had the pleasure of addressing a select group of prospective buyers at an event hosted by a prestigious estate agency. The setting was a magnificent French château—the perfect backdrop to discuss the fiscal and legal complexities of acquiring such historic assets. While the focus was on the “Château lifestyle,” these insights are equally pertinent to any high-value property acquisition in France.

The first question is whether to buy as a private individual or to set up a private property company called a Société Civile Immobilière (SCI). France has strict inheritance rules which dictate that the children inherit the majority of the estate leaving the surviving spouse with only the beneficial ownership (or ‘usufruit’) of the property. Whilst some Notaries advise inserting a clause in the deed of sale known as a “Tontine” clause to circumvent this, the inheritance aspects of this clause are often not fully explained. The effect of the Tontine is that the surviving spouse or partner is deemed to have owned the property solely from the outset. This can mean that the deceased spouses’ children are therefore disinherited.

An SCI is a legal entity through which several people, family members or investment partners, can own a property jointly. Shares can be gifted to children every 15 years utilising the €100,000 tax-free allowance per parent, per child. Non-residents can also, depending on their national law, leave their shares to their heirs thus avoiding French ‘forced heirship’ inheritance rules. The shareholders own the shares of the SCI company and the SCI owns the property. However if a shareholder wants to live in the property as their main residence in France, the SCI can lose some of its benefits. Also as a private company, the SCI needs to be created and maintained with albeit very basic (but necessary) book keeping, annual shareholders meetings and company registers.

The purpose of an SCI is to own property and receive the rental income, it cannot carry out any other business. So if the owner wants to carry out private events, chambre d’hote or sell produce, they need to set up a separate private limited company (S.A.R.L). For this they will need the advice of an accountant.

If the property is worth over €1.3million the owner(s) may be liable for Wealth Tax (‘IFI’). Non-residents only pay Wealth Tax on their French assets over this threshold. French tax residents, are liable for Wealth Tax on their worldwide properties after their 5th year of residence. The Wealth Tax declaration is done online with the income tax declaration. The tax is calculated on a sliding scale starting at 0.5% (for assets between €800,000 and €1.3 million) and rising to a maximum of 1.5% on assets over €10 million. Cash buyers may want to consider taking out a mortgage since it can reduce the net taxable value of the property. SCI shareholders are not necessarily liable for Wealth Tax even if the value of the asset is over €1.3 million since their loans to the SCI can be deducted. Additionally, primary residences benefit from a 30% valuation reduction, which may help keep the estate below the threshold.

Lots of property owners rent out all or part of their properties either all year or seasonally. There are two categories of rental income, furnished rental and unfurnished rental. All rental income is taxed in France. Furnished rentals are treated as business income. Obtaining the “meublé de tourisme” classification is recommended since this allows for an abatement of 50% on the gross income before it is subject to tax (compared with the standard 30% abatement). This classification also allows a business to earn up to €83,600 under the simpler Micro-entreprise or only €15,000 if unclassified. Over these thresholds the business would be under the “régime reel” and would need to the assistance of an accountant. An accountant would also be able to advise on the LMNP (‘Loueur en Meublé Non-Professionnel’) status, whereby the value of the property can be depreciated. It is a good idea to ask the current owners of the property how they have structured their rentals or business.

France remains one of the world’s most desirable locations for luxury real estate. Before committing to a purchase, consult with experts who understand the cross-border nuances of the French system. At The Spectrum IFA Group, we provide bespoke financial advice and coordinate with a trusted network of estate agents, notaries, and accountants to ensure your investments are both protected and optimised.Together we can make your French dream come true!

The returns must be submitted before midnight on these dates, if not a 10% late penalty payment could be added to your tax bill. The paper returns must be put in the post box by midnight on 19th May.Whilst you can download our free Spectrum guide on your tax returns HERE, here are some tips that I have about doing the tax return given the recent changes to the system:

1. Have all your figures ready and written down before you start (from bank statements, December 2025 payslips, UK tax statements etc). Stating the obvious here but this is a bit like baking a cake and realising that you don’t have the necessary ingredients. It is also a good idea to look at the boxes that you put your income in last year.
2. If you have foreign income, do the 2047 form first. You need to go into “Annexes” and tick the 2047 box since it won’t be ticked from last year, then when you are in the 2047 form tick the boxes for your income. UK rental income and government pensions need to be put into Section 6 to be carried into box 8TK on the 2042. Other boxes will not be carried over automatically so you need to re-enter these amounts on the main tax form.
3. Your bank accounts are already listed and the good news is that this year you don’t have to find the separate 3916 form. However, if you have an assurance vie, the figure given as the amount as at 1st January 2025 will not be correct and will be the figure entered last year, so you need to update this. The other information regarding your other accounts, should be the same so there is nothing to do there.
4. This year you can choose whether your investment income is to be taxed at your marginal rate or at the flat tax rate. If you are either not taxable or only taxable in the 11% rate, then you should choose to have your investment income taxed at your marginal rate. However, if you are a higher tax payer, the flat tax may be more beneficial.
5. Don’t forget your tax credits. If you have home help (gardeners, cleaners etc) you get a tax credit of 50% of the amount even if you have no tax to pay. This may have been taken at source through CESU for example but if not, you need to declare the amounts on the tax certificates you received from these organisations. There are extra boxes this year where you need to state the name of the organisation, type of organisation, type of service provided etc as well as the amount.
6. Did you make any charitable donations in 2025? If so, you need to find the amounts and proof of these donations for your files. Charitable donations only give you a tax reduction, not a tax credit so if you are under the tax threshold you can declare the donations but it won’t affect your tax liability.
7. If you have paid into a PER in 2025 the figure will appear on the form but you need to reenter it in the box below.
8. If you have children in high school, sixth form or university you need to put the number of children in each category to get a small tax deduction. Cost of care for children under 6 can give rise to a tax credit of half of the amount.

Every year in France people either engage a tax specialist to do their taxes or they attempt to do the form themselves. In the latter case it can cause some stress and worry but also a rewarding feeling once it is done. There are many things that can stress me out but taxes isn’t one of them. So if you have any questions or concerns about your French taxes or financial matters, please do get in touch.

March has been a rather long and hectic month not just in terms of workload but also due to the ongoing geo-political situation. Since the joint US and Israeli strikes on Iran on 28th February, we have faced soaring oil prices and persistent market volatility. With no clear exit strategy, investors remain nervous.

The investment landscape has changed significantly. One fund manager recently shared that while his career began with decisions based on technical data and analysis, he now finds himself monitoring Truth Social for indications of policy direction. The traditional “quiet weekend” has been replaced by the risk of late-night social media updates from the US President that can pivot global markets come Monday morning.

Despite a consensus that Iran needs to de-escalate to alleviate the economic pain felt by its regime and populace, and that US troops on the ground would be highly risky with no guarantee of success, both sides continue to match each other’s threats. Just last night President Trump seemed to suggest that the war would continue for another couple of weeks.

Oil and gas price rises have continued to rise over the past few weeks. Brent crude oil was 63.3% higher for the month, the largest monthly percentage rise on record over recent decades.

The markets remain understandably pre-occupied by the Middle Eastern conflict, and specifically the impact on energy prices. This could also affect inflation expectations leading to central banks possibly raising interest rates.

You can now choose whether you would prefer that your investment income be taxed at the flat tax rate or at your marginal rate. Previously by ticking the box 2OP on the tax declaration, your interest, dividends and capital gains would be subject to your marginal rate and not the flat tax of 31.4%. This choice was irreversible even if the taxpayer later realised that it was not beneficial. As from next year, taxpayers will be able to change this option. However, for income received in 2025 and declared in 2026 this does not apply.

The thresholds for micro-entreprises will increase for income earned in 2026, 2027 and 2028 to €203,100 for Micro-BICS for sales of goods and holiday rentals and to €83,600 for other micro-BICs (furnished rentals, services and arts) and for micro-BNC businesses. However, the threshold remains at €15,000 for “meublé de tourisme non classé”.

After a strong start to 2026, gold’s “safe haven” status is being called into question. Traditionally seen as a less volatile asset class that can hold its value in times of crisis, hedging against equity market falls, since the conflict escalated in March, gold prices have fallen steadily. In France, there are two types of tax on gold, either a 11.5% on the sale price or at 36.2% on the gain with tapered relief based on the duration of ownership and full exemption after 22 years.

After the Easter weekend I will be back at work but then will take the second week of the school holidays to spend time with family. If you have any questions about your finances or taxes in France, please do get in touch to arrange a free, no obligation, phone call or meeting.

After a very wet, windy and stormy February it is lovely see some sunshine and the first spring flowers coming into bloom.

The income tax thresholds have not been frozen as initially planned in the 2026 finance bill; instead, they have increased by 0.9%, aligning with the 2025 rate of inflation. The new tax-free allowance is €11,600 per person. The other tax bands are as follows:

Employees can deduct a set amount of €509 from their taxable salaries for costs, capped at €14,556. The 10% abatement before tax will still apply to pensions with a minimum of €454 and a maximum of €4439.

To reduce your taxes and assist you at home you may use home help such as a gardener or cleaner. Now the cost of home delivered meals to the handicapped or elderly and their dependents also qualifies for a tax credit even if you don’t have other kinds of home help. While services may be more limited in rural areas, it’s worth exploring.

Another measure that has been scrapped is the increased VAT threshold for independent workers and furnished rentals. This threshold remains unchanged.

As mentioned in last month’s Ezine, social charges have risen from 17.2% to 18.6%. Whilst this does not apply to assurance vies nor PEL accounts, it will apply to PER retirement accounts. Also, after the recent fall in interest rates on the Livret A and LDDS accounts on 1st February, the interest rate on the LEP account has also dropped from 2.7% to 2.5%.

On 25th February 2026 the Prudential Assurance Company board reviewed the Prufund Expected Growth Rates (EGR) as part of its quarterly review. Prufund aims to help customers grow their investments over the medium to long term (5 to 10 years) while protecting them from short-term market fluctuations through the unique smoothing process. The Expected Growth Rate (EGR) is the forward-looking element of the unique Prufund smoothing mechanism. This quarter the EGRs for all versions of Prufund remain unchanged.

However, there have been some upward movements to the, the Unit Price Adjustment (UPA), the backward-looking element of the Prufund smoothing process, which is formulaic and non-discretionary, as follows:

Prufund Growth GBP       +2.54%
Prufund Growth Euro      + 3.25%
Prufund Growth USD      + 3.46%

This is positive news for Prudential International investors when they receive their quarterly statements at the end of the month.

At the time of writing, the US and Israel have launched strikes against Iran, which will have an impact on oil prices and may cause some short-term market volatility. However, our well diversified portfolios are designed to withstand periods of geopolitical tensions. In times of intense media coverage, it’s important to remain calm and focus on long-term strategies.

At the end of January, I joined colleagues and product providers at our annual conference in Monaco. We heard a range of insightful presentations from companies including Evelyn Partners, iPensions, Momentum, New Horizon, VAM Alquity, LGT Wealth Management, Novia Global, Rathbones, Utmost, Prudential and RBC Brewin Dolphin.

There is often a difference between what dominates the headlines and what investment managers focus on. While it has become increasingly difficult to ignore what is happening in America, it is important to remember that we maintain a long-term focus for our clients’ investments.

As outlined by the fund managers, markets remain heavily tech-focused. However, although stocks from the companies known as the “Magnificent Seven” dominated markets in 2023 and 2024, there has been some broadening in 2025. Nvidia shares have recently flatlined and Microsoft was down 20%. Even though European stock markets are performing better, fund managers are not yet ready to abandon US equities in favour of European ones.

Unfortunately, the UK economic outlook remains gloomy. For several years now, fund managers have highlighted how little exposure they have to UK stocks within their portfolios. However, the FTSE 100 performed well in 2025, largely because many UK companies generate profits outside the UK.

AI also requires significant infrastructure, including large data centres and substantial energy supply. Its influence is now extending into emerging markets as well.

Fund managers have reduced their oil exposure as energy prices continue to decline. Sovereign bonds, however, are becoming more attractive, with yields of between 1% and 3%, particularly Norwegian, Australian, New Zealand and Japanese bonds.

Novia announced its new GIA product which, like its SIPP, can hold funds denominated in HKD and Australian dollars, as well as GBP, EUR, CHF and USD. Currently, UK SIPPs sit outside a deceased person’s estate for inheritance tax purposes. However, proposals from the UK Chancellor will bring defined contribution pensions into the inheritance tax net from 6 April 2027.

Evelyn spoke about the digital data boom, describing it not as a fad but as a generational shift (anyone with teenagers will relate). Their aim is to “turn data into dollars” in 2026, and they continue to see opportunities, particularly among companies utilising AI. Stronger earnings and a weaker dollar are also supporting emerging market equities.

In French financial news, from 1 February 2026 the interest rates on French savings accounts have been reduced as follows:
Livret A: 1.50%
Livret de développement durable (LDDS): 1.50%
Livret Jeune: 1.50%
Compte Épargne Logement (CEL): 1.00%

Local taxes, in particular taxe foncière, are not expected to increase by more than 0.80% in 2026, due to the increase in the rental value of properties.

Other key changes from 1 January 2026 include:

• The annual social security ceiling is set at €48,060 (€4,005 per month).
• The legal interest rate is set at 6.67% for loans between individuals (for example, late custody payments) and 2.62% for loans between professionals.
• The maximum amount that can be withdrawn from a deceased person’s bank account to cover funeral costs is €5,965.
• Medication, treatment or services provided by non-contracted doctors (those who set their own fees) will no longer be covered by social security from January 2027.
• Fees for certain medical specialists have increased (€40 for a gynaecologist, €42 for a geriatrician and €57 for a neurologist).
• Stamp prices have increased, as they do each year, to €1.52 from €1.39. Postal costs for other services have also risen.
• Interest earned on PEL savings accounts is subject to income tax (12.8%) and social charges (18.6%), bringing the flat tax rate to 31.40%. Holding a PEL allows access to a mortgage at 3.2%.
• If you are expecting a baby in 2026, you may be entitled to an additional two months of maternity, paternity or adoption leave.

In January, if you benefited from specified tax credits or reductions (for example, home help), you will have received a payment equal to 60% of the total amount. The remaining balance will be reconciled through your 2025 tax return in September 2026.

After catching up with work following the conference, I will be spending time with my family from 16 to 20 February during the half-term holidays. If you have any questions about the information above, or would like to arrange a time to discuss your financial matters, please do get in touch.

Happy New Year!! I wish you all the very best for 2026. I hope that you had an enjoyable festive season. We spent Christmas at home, which was very nice and relaxing, so now I am well rested, ready for the new year and looking forward to seeing all my clients. 

On 9th December the Law for the Financing of the Social Security was adopted by the National Assembly and, pending any issues with the Constitutional Court, it is now enacted into law. Under this law, the official retirement age is now 62 years and 9 months, with a required contribution of at least 170 semesters set until 1st January 2028 for pensions taking effect from 1st September 2026. As a result, anyone born between 1964 and 1968 may retire 3 months earlier than previously expected. Furthermore, as from 1st January 2026, the French state pension increased by 0.9%.

This law also increased the CSG social charges on interest, dividends and capital gains from 9.2% to 10.6%. The flat tax (PFU) on this income has therefore risen from 30% to 31.4%. However, withdrawals from assurance vie policies, PEL and PEP (plan épargne populaires) accounts, rental income and capital gains on property are not affected. So for people with money in UK saving accounts, the interest will now be taxed more heavily in France. It is worth considering whether it remains appropriate to keep such accounts, or whether it would be more tax-efficient to move funds into French savings vehicles such as a Livret A or LDDS, or into an assurance vie for longer-term planning.

If you have up to €61,200 that you need to put away for a year or two, a PEL account opened from 1st January 2026 now offers an interest rate of 2% compared with 1.75% for PELs opened after 1st January 2025. The interest rate for a PEL is determined at the time the account is opened.

From 1st January 2026, cash gifts now need to be declared online via your account on the impots.gouv.fr website. This applies to gifts of money, shares or valuable items such as a car. You will be asked to declare any money or gifts of value and state whether they fall under the €100,000 allowance between parents and children or the €31,865 made by a relative under 80 years old to a recipient who is over 18 years old. If the recipient is a minor, their parents should do the declaration for them on their online account. Christmas gifts remain exempt and do not need to be declared.

Since 1st December 2025, parents who are divorced or separated, will now both receive childcare benefit (complement de libre choix de garde) provided the child is cared for by a registered childminder either at the childminder’s home or at the child’s home.

For those looking for a bargain or waiting to buy something special, the sales in France will begin on Wednesday 7th January at 8am and will continue until Tuesday 3rd February.

Furthermore the thresholds for what is considered a low income and middle income households have been increased.

Later this month, I will be attending our annual conference in Monaco with colleagues and meeting with our product providers to review the past year and discuss the factors likely to influence investment strategies in 2026. I will share key insights from our conference in the next Ezine.

In the meantime, if you have any questions about the topics above or would like to discuss your personal financial situation, please do not hesitate to get in touch to arrange a free phone call or meeting.

Autumn has officially arrived in France. The clocks have gone back, the air is cooler, and whilst grey, rainy days have set in, we can still look forward to the occasional burst of sunshine. November may be one of the shorter months, but before preparations for the end-of-year festivities begin, there are several important matters to keep in mind

Although the taxe d’habitation has become a thing of the past for most French residents, it still applies to owners of second homes in France. Over four million households are liable for either the Taxe d’Habitation sur les Résidences Secondaires (THRS), the Taxe sur les Logements Vacants (TLV), or the Taxe d’Habitation sur les Logements Vacants(THLV).

The Taxe d’Habiation statements should now be available in your online account on impots.gouv.fr, where you will also find the payment details and deadlines.

On 25th October, the French deputies voted to amend the draft finance bill that was proposing to freeze the income tax rates, instead voting in favour of re-establishing indexation in line with inflation which increases current tax bands by 1.1%. Below is a table showing the 2025 thresholds compared with the proposed thresholds for 2026.

Once the finance law is officially adopted at the end of the year, I will confirm these thresholds.

If you are subject to Wealth Tax on Property (IFI) and the amount due is €300 or less, this must be paid by 17th November by cheque, cash or bank card or by the 22nd November if you pay online. If the amount is more than €300, it must be paid online via the impots.gouv.fr website.

By now, you should have received your income tax statement and paid tax due. If you have discovered any errors or miscalculations, please correct them as soon as possible as after 3rd December 2025 you will no longer be able to submit an amended tax return on the impots.gouv.fr website; any corrections after this date must be submitted in paper form.

If you have a PEL account which was opened between 2011 and 2015, your bank will automatically close it and transfer the funds to another savings account. PELs opened since 1st March 2011 can be held for a maximum of 15 years, whereas the PELs opened before this date can remain open indefinitely. According to the Banque de France, the average balance of a PEL account is €25,017, with around 12% of such accounts exceeding the maximum capital limit of €61,200. These accounts are not term accounts and should only be used if you plan to purchase a property or carry out renovations to your property.

If you do seasonal lettings, you will have received an email from the tax office reminding you that the tax rules have changed in 2025. For “meubles de tourisme non classés” if your income in 2023 and 2024 was more than €15,000 you can no longer stay as micro-BIC. The income that you received will be under the “régime réel” and will require the assistance of an accountant. You should contact your tax office for more information.

Urssaf also sent an email to remind those who earned over €23,000 from their season lettings that they have to pay social security contributions on this income and not social charges like other landlords. Depending on your turnover, you can opt for the micro-social regime at either 21.2% (for meublés de tourisme non classés) or 6% (for meublés de tourisme classés). From 2027, website-based business as Airbnb and Arbitel will take the social contributions directly at source.

If you have any questions on the above or any other matters, please do get in touch. I am available for online meetings or face to face meetings throughout November, so if you have any questions about your finances, please do contact me to arrange a free, no obligation, meeting.

France has a new prime minister (again), actually – no we don’t – another one gone! However, time is of the essence to ensure that the Finance Law is approved and passed into law by the end of the year. Prior to the government reshuffle, there was a plan to freeze the tax rates at their current level and not adjust them in line with inflation as has been done in the past few years.

There was also a plan to set the 10% abatement on pensions at a maximum of €2000 per pensioner rather than the current maximum of €4399. Whether these measures will be adopted into law by the end of year, only time will tell.

According to a study published by the French National Statistics Body (INSEE, Focus 354), in 2024, 78% of French residents have a Livret A Savings account, compared with 42% who have an assurance vie and 27% that have a property savings plan (PEL/CEL). Only 19% of French residents have a retirement account (PER) and only 16.5% are part of an employer’s savings plan. Clearly the French prefer to keep their investments in assurance vies rather than in share accounts since only 9.8% of French residents have PEAs and only 9.6% have ordinary share accounts (compte titres). With the interest rate for the Livret A now at only 1.7%, this means that a large amount of French savings is not protected from inflation. Since money in an ordinary share account is subject to both tax and social charges, it is more tax efficient to invest in either an assurance vie or a PEA.

This autumn child care benefits (“complement de libre choix du mode de garde” or CMG) are changing. The CMG is a family benefit which covers part of the costs of a child being looked after by a carer (assistante maternelle) or at home by a nanny employed directly by the parents. This benefit is being amended in order to better assist families in certain situations. From 1st September 2025, the amount of this benefit will also change. In particular, single parents can now receive CMG until their child is 12 years old instead of 6 years old previously. From 1st December 2025, for parents with shared custody of their child, each parent can receive CMG under certain conditions. The calculation of the amount of benefits will be done automatically by Urssaf on the Pajemploi website and families will be informed of the new amount of benefits they will receive in the September 2025 declaration.

Most people will have noticed an increase in their tax foncière of 1.7% due to the annual revaluation of the rental value which is the basis on which this tax is calculated.

There may also be an additional increase if your local council has voted for one. Other subsidiary taxes such as the tax to manage aquatic areas and the prevention of flooding may also have increased in certain areas. As for the tax for the refuse collection, a table produced by the Environmental and Energy efficiency (Agence de l’environnement et de la mâitrise de l’energy) published in Le Monde newspaper on 25th August showed that more than half of local authorities charge more than what it actually costs them to collect and treat the rubbish. If your tax foncière seems excessively high this year, it may be worth raising this issue with your local council.

If you have any questions on your financial situation in France, or know someone who does, please do get in touch and I would be happy to arrange a free, no obligation, phone or video call.

After a long sunny summer it is nice to get properly back to work now that my children have returned to school. It is also nice to have had some days of rain since the garden was in desperate need of it.

Over the summer you should have been notified that your tax statements are available online. If you paid too much tax this was reimbursed on 25th July. If you are not paying your tax by direct debit from your account, you must pay your tax by 20th September. If you have provided your bank details to the tax office and you have more tax to pay, your monthly payments will increase from 15th September and, if you have more than €300 to pay, you will have to pay off this amount over the next four months on 25th September, 25th October, 25th November and 29th December. If you have less than €300 to pay, it will be taken out in one payment on 25th September. Please do check your tax return as mistakes often occur.

Most people don’t notice the mistake until they are asked to pay an unusually high amount of tax and then they realise that other mistakes were made in previous years. If you do notice something wrong, you must first pay the tax that is requested on the statement and then submit an amended return. Any tax overpaid will be repaid once the new statement is produced.

As announced in my previous Ezine, the interest rates for the Livret A and LDDS savings accounts fell from 2.4% to 1.7%, the LEP interest rate fell from 3.5% to 2.7% and the interest rate for the CEL account fell from 1.5% to 1.25% as from 1st August 2025.

The markets continued to perform well in July and August, with US equities hitting record highs. This was in part due to concerns over tariffs diminishing, as numerous trade deals were signed leading up to the Trump administration’s 1st August deadline. Although the Trump administration considered these deals frameworks, including deals with Japan, the European Union (EU) and South Korea, as a political victory, they were vague on details and lacked clarity. However the markets appear to be less reactive over such tariffs, at least for the moment, which may indicate that volatility will not be as severe as it was in April. Strong corporate earnings and solid jobs data also buoyed equities.

UK inflation accelerated to 3.8% in July, the highest level since January 2024, while Eurozone inflation held steady at just 2%. This marks the widest gap between the UK and its European peers in nearly two years. Meanwhile the US dollar rose 3.2% in July, its best month since 2022, as the Fed indicated it was still in no rush to cut rates. With inflation above the Fed’s 2% target, and the full impact of tariffs on inflation unknown, the Fed seems to be taking a ‘wait and see’ approach.

The Expected Growth Rate (EGR) is the forward looking element of the Prufund smoothing process. Pru announced that the EGRs for the GBP versions of Prufund were increased by 0.1%. So the Prufund Growth GBP is now 7.4% and the Prufund Cautious GBP is now 6.7%. The EGRs for all the Euro and USD versions of the Prufund remain unchanged. The Unit Price Adjustment (UPA) part of the smoothing process, which is a backward looking element, and which is formulaic and non-discretionary, is also reviewed quarterly. This quarter there was an upward UPA for the Prufund Growth USD version of 3.55%. There were no Unit Price Adjustments in the other PruFunds.

If you have any questions on the above or any other matters, please do get in touch to arrange a time to discuss your personal financial situation.