France is a great place to live and I’ve enjoyed every minute of my 25 years here. It’s not always easy living in a foreign country, especially in light of the Anglo-Franco relationship through the centuries (I had never realised that the French were so upset about what the English did to Jean of Arc until I joined the events committee in my village), but there are things we can do to make it is a little easier.

I always recommend expats learn to speak at least a little French and tell them not to worry about making mistakes. An attempt to communicate is always appreciated even if your grammar isn’t perfect. Always say ‘Bonjour’ upon entering a shop or a lift, ‘Au revoir’ when leaving. We might not always do it in the UK but some French people get really annoyed if you forget. And always look both ways when crossing the street, even if it is one way. French drivers often treat the rules of the road more like guidelines.

Expats coming to live in France should also not assume that the French approach to finances and taxes are similar to where you’ve come from. If we think about how complicated these subjects are even in our home country, then you won’t be surprised to hear that they may not be entirely straightforward in France either. Often there are differences that you might never have considered, some are small but some are so substantial that they could add up to hundreds of thousands of Euros.

That is why I’m going to share a few tips for managing your finances and making life in France smoother and less stressful.

1. Use a Livret A or LDDS for your emergency fund – these are government-regulated bank accounts with a fixed rate of interest that is tax-free. As part of your financial planning, I always recommend you have an easily-accessible emergency fund in case you need it at short notice. These accounts currently pay 2.4% – not much, but better than nothing and always available.
2. Consider transferring UK assets to France – Some Brits living in France may have left savings and investments back in the UK and therefore would be liable for tax on income and capital gains. By holding this money in French-compliant products instead, you could save yourself from paying tax unnecessarily, and still enjoy a very wide range of investment options (with paperwork in English).
3. Ensure your French investments are tax efficient – Assuming you have brought investments or savings to France, are they now in the most tax-efficient vehicles? Some popular investment accounts are subject to taxes that could easily be avoided. Tax-efficient savings and investment vehicles may have limits on how much you can put in, but make sure you maximise the use of these as far as possible to reduce your French tax bill.
4. Think about planning your inheritance as early as possible – France’s inheritance taxes can be onerous and the basic allowances can be swallowed up quickly if you own property or other substantial assets. However, by using the correct structure and planning techniques as early as possible, families can smoothly pass assets to their loved ones and potentially save hundreds of thousands of Euros that would otherwise go in tax.
5. Don’t forget to declare foreign accounts, income and trusts – Foreign bank accounts should be declared with your income tax declaration each year, regardless of whether they are empty or pay much interest. Failure to do so can result in big fines and they are far more common than you might think. Equally, if you have any links to a trust, there are strict reporting requirements in France.
6. Shop around for general insurance – Over the years it has become increasingly simple to cancel your existing car, home, scooter or health insurance in order to switch to another provider. By using the major comparison websites, I’ve found that you can save hundreds, if not thousands, of Euros by regularly checking what the insurance market is offering.
7. Speak to an expert before taking pension benefits – Whilst you can take a tax-free lump sum at retirement in the UK, the situation is different if you are resident in France. Before accessing your pensions or making a transfer, you should speak to someone who can explain the consequences relevant to your personal situation or it could be costly.
8. Understand how your marriage regime is treated – France recognises several different types of marriage regime and they can be treated differently for tax purposes. Before making investments, gifts or any other significant financial transactions between spouses, you should speak to an expert in order to avoid potential tax liabilities down the road.
9. Own your own home if you can – I always include this because for many people the 100% capital gains tax allowance you get on the sale of your main residence could be the biggest tax break you ever get. French house prices have risen 27% during the past decade. In fact, the French stock market has risen even more, 61%, hence why it is important to ensure your financial investments are also rolling up tax-free.
10. Take advice from a regulated professional with cross-border experience – Financial planning can make you money and it can save you money. But understanding the implications of assets and taxes in more than one country is extremely complicated and requires professional assistance. Give yourself an advantage and get in touch! I am here to help.

I’m always looking for ways to improve how we can work together, ensuring that your financial planning experience is seamless, efficient, and tailored to your needs. To that end, I am excited to share some recent technology updates that will enhance our communication and collaboration.

These two new enhancements add to the suite of tech tools I am already using to save time, improve communication, improve my efficiency in dealing with follow up tasks and provide you with the best financial planning service possible.

Introducing Our Virtual Office Via Spatial.chat

Spectrum advisers and our clients are spread across Europe and so we have invested into an innovative virtual office via App.Spatial.chat to offer a more interactive and engaging way to meet remotely. This platform allows for an easy to use virtual face-to-face experience, making it easier for us to discuss your financial plans in a comfortable, secure setting – whether you’re at home or on the go.

This tech does not replace face-to-face meetings but offers us another way of meeting. I will be offering this as an invite option via my Calendly Booking system as well as zoom, teams, telephone calls and, of course, face to face meetings.

When you enter the Spectrum Virtual office, as a guest, you will see a brief introduction as to how it works, you can then enter the main office or any of our ‘country’ offices, via the list on the right hand side of the screen.

Our meetings will be conducted in my own personal office which is password protected so we have complete privacy from anyone else who might be online at the time.

I look forward to seeing some of you there over the coming months.

Secure Meeting Documentation with Otter.ai

To ensure I capture every important detail during our discussions, I will now be using Otter.ai to record virtual and even live face to face meetings, with the agreement of my clients.

This tool allows me to create accurate transcripts of our conversations, helping me stay fully aligned with your financial goals and ensuring that nothing is overlooked.

Rest assured, all recordings and transcriptions will be handled securely, I permanently delete each one as soon as I have downloaded the transcribed notes and follow up to task lists, maintaining strict confidentiality in accordance with data protection standards.

Click on the following image to view a brief introduction to Otter

If you prefer for me not to record our meetings, please say so, and I will turn off the tech. Likewise, if you want me to send you the notes I would be very happy to.

Why These Changes Matter to You

• More convenience: Join virtual meetings effortlessly, without the hassle of traditional video conferencing setups.
• Better accuracy: Transcribed notes ensure that no key point is missed.
• Improved collaboration: We can refer back to meeting summaries for clarity and progress tracking.

Successfully Introduced over the last few years

Cash Calc Secure Client Portal for data gathering, expense tracking, document sharing and even secure messaging: https://the-spectrum-ifa-group-1002.cashcalc.co.uk/register?ref=MTIzMTU=

Calendly booking system for easy call and meeting booking linked straight to my diary https://calendly.com/peterbrooke/30min

DocuSign and Adobe Sign – these allow me to send you paperwork to sign digitally and securely to save us all time and the requirement to print and post documents.

The future of finance is undeniably tech-enabled. By embracing AI and support tools like these, we plan to remain competitive, agile, and customer-focused.

Even though Spring is officially a few weeks away, it certainly feels like it is in the air with the sunnier weather and flowers popping out. We have a large Mimosa tree in our garden which is full of bright yellow, fragrant flowers.

Although it’s ‘better late than never’, we now have a finance law and a budget as of 6th February. The income tax bands have been increased by 1.8% rather than the originally announced 2% as inflation is lower than anticipated.

The new tax bands are as follows:

A new tax; called the “contribution differentielle sur les hauts revenus” (CDHR), has been introduced, and will come into effect next year, for those who earn over €250,000 as an individual or €500,000 pa for couples. This is to guarantee a minimum tax of 20% on their income earned in 2025. Those tax payers who are subject to this tax (i.e. those whose income is largely exempt or subject to the flat tax of 12.8%) have to make an advanced payment of 95% between 1st and 15th December 2025. The exact amount of tax will be calculated in Summer 2026.

A parent, grandparent or great-grandparent can give €100,000 to a descendant without paying tax up until 31st December 2026, subject to certain conditions. The beneficiaries of this gift must use this money in the six months following the gift to buy a new property, or a property soon to be completed or for energy efficient renovation costs to an existing property. If the person does not have children, the money can be given to a niece or nephew. This is in addition to the usual gift allowances. The property purchased or renovated must become and remain their primary residence for the next five years. Since the gift would need to be declared through a notaire, it is important to ask them whether in your situation this allowance can be used.

You can give up to €1000 to charities which provide food, aid, or housing for people in need and get a tax reduction of 75%. Any amounts over this threshold are subject to a tax reduction of 66% up to 20% of the taxable income. The same allowance is granted for donations to charities that protect victims of domestic violence.

There has been much concern from small businesses about the lowering of the VAT threshold to €25,000. This has now been suspended whilst the tax authorities consult with professionals and the minister for the economy has said that for now micro entrepreneurs do not have to make any additional declarations. However the VAT thresholds have already been lowered in the 2024 finance law. In 2025 if your turnover exceeds €85,000 for sales/puchases or lettings or €37,500 for services, you have to charge VAT in 2026 or even in 2025 if you have gone over the threshold of €93,500 or €41,250 respectively.

If you have any questions on any of the matters mentioned above or would like to discuss your own financial situation please do get in touch.

In most countries, tax-efficient savings and investment schemes exist, with the aim of encouraging people to save for their medium and long-term goals. However, the problem when we become resident in France, is that the tax-efficiency that we enjoyed from our ‘home’ schemes (e.g. in the UK, ISAs and Premium Bonds) is usually lost.

This is because as a French resident, you are liable to French taxes on all your worldwide income and gains, except for anything that might be exempted by the terms of a Double Taxation Treaty between the home country and France.

In our last article we covered tax-free cash deposits available in France for short-term needs and liquidity. For the medium to long-term, there is one product that stands ‘head and shoulders’ above the rest and that is an Assurance Vie.

What is an Assurance Vie?

An Assurance Vie (AV for short) is an insurance-based investment in a tax wrapper. It can be as simple or as complicated as you wish to make it, and it has some rather special properties:

• The investments that you place within your AV are never touched by French income tax or capital gains tax as long as they stay inside the tax wrapper.
• The AV is never locked. You can take your money out whenever you like (although as AVs are designed for longer term investment, withdrawals in the early years will reduce tax efficiency and may incur exit penalties in some circumstances)
• If you keep the AV going for at least 8 years, you then qualify for a special income tax-free band on top of your normal allowances, together with a low withholding tax rate.

Millions of French people use the AV as their standard form of saving and investment and many billions of Euros are invested this way via French banks and insurance companies, which offer their own branded product. However, we work with providers across the European market and favour international providers of an AV typically situated in highly regulated financial centres, such as Dublin and Luxembourg. Some of the advantages of the international AV product compared to the domestic French policy are:

• It is possible to invest in currencies other than Euro, including Sterling and USD.
• There is a larger range of investment possibilities available, providing access to leading investment management companies.
• Documentation is in English, thus helping you to better understand the terms and conditions of the AV policy.
• The AV policy is usually portable, which is of particular benefit if, for example, you moved back the UK.

Does an Assurance Vie have other advantages?
Without doubt, the AV is effective for inheritance planning. AVs are considered to be outside of your estate and you can leave them to your chosen heirs on your death (not just the ones Napoleon thought you should leave them to). You can leave each individual beneficiary a sum completely free of French inheritance tax which is in addition to the standard inheritance tax allowances. To maximise this attractive inheritance benefit, an AV should be established and funded before age 70 since, for sums invested before age 70, your chosen beneficiaries are each entitled to an inheritance tax allowance of up to €152,500. For amounts invested after age 70, inheritance benefits still exist but are much reduced.

Can I take income from an Assurance Vie?
Yes, you can use the funds in your AV to provide income if required and, when the policy is 8 years’ old, it becomes particularly tax efficient since an additional tax-free allowance of €4,600 for an individual or €9,200 for a couple, is available to offset against any taxable gain in relation the amount withdrawn – this is in addition to the usual personal allowances.

Is an Assurance Vie right for me?
An Assurance Vie is a valuable asset, helping you to shelter your capital and income from unnecessary taxation during your lifetime and protection for your loved ones when you are gone. However, everyone’s circumstances are different, and it is essential that you take professional financial advice before investing into this type of product.

If there are any subjects you would like us to cover in one of these articles or if you would like to contact one of our advisers for a financial consultation (no fee), then please get in touch at info@spectrum-ifa.com

As John Cleese conceded in Monty Python’s “Life of Brian”, they did provide sanitation, medicine, education, public order, irrigation, roads, a fresh water and a public health system – oh and wine! However, they also came up with – pensions.

In 13BC Emperor Augustus had Roman soldiers stationed across the empire, including some poor souls stuck in Britain disillusioned with the weather and living conditions. To keep morale up, Augustus introduced the first Defined Benefit “Final Salary”, pension scheme. After 20 years’ service soldiers could retire with a lump sum equal to 13 years’ salary. It was initially funded by regular taxes but later by a 5% inheritance tax. Perhaps the UK Chancellor has been studying the Romans recently!

Not much then happened on the pension front until the 17th century when the Germans started the first pension fund in 1645. It was set up to provide benefits for widows of the clergy followed in 1662 by a similar fund for widows of teachers. It took another 200 years for civilian pensions to become widespread, with Germany leading the charge again under Chancellor Otto von Bismarck.

Problem number two is “lifestyle investing”. This affects Defined Contribution (DC) “Money Purchase” schemes. As retirement nears, fund managers gradually move investments from the stock market into government bonds, historically seen as the safest asset.

Bonds are basically IOUs and if issued by the UK government are called gilts (because the original certificates had gold leaf embossed edges). These bonds promise to return the initial investment after 10, 20 or 30 years, paying annual interest in the meantime. Investors typically don’t hold them until maturity but trade them in the open market instead.

Imagine in 2020, I borrowed £10,000 from you on a 10 year, interest only basis at 1% a year. At the time, it seemed a good deal – your bank was paying next to nothing. Now, in 2025, you realise you could lend that money elsewhere and get nearly 5%. But I’m not keen to repay early. Your only option, if you want the higher rate of interest, is to negotiate a lower payout, meaning you get back less than £10,000. That’s how bond markets work.

Before the UK’s 2015 pension freedom reforms, most people took 25% of their pension pot as a tax-free lump sum (tax free in the UK not France) and used the rest to buy an annuity which gave them a guaranteed lifetime income. Since 2015 when everyone was given the flexibility to do basically whatever they liked with their pension, most people have taken their tax-free lump sum and then left the remaining funds in “drawdown” – staying invested and taking an income every year – rather than buying an annuity. This seemed safe after decades of low interest rates. But rising rates in 2022-23, driven by inflation, caused bond yields to soar and bond prices to plummet, hammering lifestyle funds.

We get regular health checks. Our cars get checked once they reach a certain age. Pensions and other investments are no different. Regular reviews ensure you maximise returns, minimise tax exposure, provide financial security for yourself and your family, and avoid unwelcome surprises. After all, the Romans may have invented pensions, but it is up to you to make sure yours actually works for you.

Looking forward to 2025

Another year and another wonderful Spectrum conference. More on that in a moment.

Last year, in Budapest, was my 20th conference with Spectrum after which I offered a fairly cautious outlook for the year to come. You can review my thoughts in The view from the Danube

I have now just returned from a superb four days in Casablanca, hence the name of this piece, which was our first ever conference outside of Europe. We had another great group of experts who shared their views on the key themes likely to shape 2025. From the future of US markets under Trump 2.0 to opportunities in bonds and the transformative power of AI; here’s a summary of the insights most relevant to your investments and financial goals. Overall I feel cautiously optimistic looking forward to 2025.

Market Highlights & Opportunities

1. Momentum: The US economy grew by 3.2% in 2023 and is forecasted to grow 2.8% in 2024, showing resilience despite high inflation and interest rates.

2. Earnings Growth: US companies are projected to achieve earnings growth of 13.8% in 2025—significantly higher than the 7.4% forecast for European companies.

3. Profitability: The US has long maintained a profitability edge over other developed economies, and Trump’s deregulation efforts could further enhance competitiveness.

4. Structural Advantages: Energy independence, favourable demographics, and leadership in technology (particularly AI) continue to position the US ahead of its global peers.

Trump 2.0: Pro-Growth Policies and Market Implications

UK Bonds: A New Era of Opportunity

AI: The Next Growth Engine

Navigating Risk in 2025

What This Means for Your Portfolio

I would very much like to thank the investment management teams at RBC Brewin Dolphin, Rathbones Investment Management, Evelyn Partners, New Horizons, Alquity Investments, VAM Funds and Prudential International for their time and expert views for the content in this update.

Here are some links to other articles supporting this summary if you want to dive deeper into the details:

US Continues to Outperform https://www.evelyn.com/insights-and-events/insights/can-us-outperformance-continue/

A look back on 2024 https://www.evelyn.com/insights-and-events/insights/2024-investment-review-ifa/

Trump 2.0 https://www.lgtwm.com/uk-en/insights/market-views/trump-politics-the-global-order-250934

The excellent monthly Rathbones Sharpe End Podcast https://www.rathbonesam.com/uk/sharpe-end-podcast#podcasts

In January at our annual conference in Casablanca it was nice to escape the cold, dark mornings of France and get a bit of sunshine. It was an interesting and informative conference thanks to our product providers bringing their various observations and opinions about investment markets and geopolitical events.

On 20th January, just as we were arriving at our conference, Donald Trump was sworn in again as the American president. He wasted no time getting to work with executive orders. On day two of our conference, Rathbones Asset Management presented their views on what we can expect from Trump 2.0. The phrase “Drill, baby, drill” was mentioned more than once – like his first term in office, we can expect (to the extent that Donald Trump’s decisions can be predicted) that he acts to protect American interests and American businesses with tax cuts and less regulation, which in turn is likely to be good for the US economy. This time around it looks like he has his eye on imposing tariffs on everything.

There was much talk about how well the US market had done last year. However, Rathbones also highlighted the following:

• 29% of the global stock-market (as measured by the FTSE All World index) is now in the technology sector, and of this, 19% is concentrated in just seven companies
• 65% of the FTSE World index now comprises US companies
• the top 10 holdings in the FTSE World index account for 23% of the index’s total value

So, whilst markets (and investors’ portfolios) have performed well, the dominance of the “Magnificent Seven” is a concern for some investors.

On day three of our conference, which was the second day of Donald Trump’s second term in the White House, he had already introduced executive orders and other measures, which meant that our presenters, Evelyn Partners and LGT Wealth Management, had fresh insights for us. This is likely to be an ongoing theme of Trump 2.0 – there will be lots of change, there will be lots of noise, there may be action that may need to be reversed for not complying with the law and/or the US Constitution, and there may be controversy. However, as controversial as Donald Trump is, and regardless of your personal views on his character, the consensus is that he will be good for the markets.

Prudential International told us about their funds’ positive performance in 2024, how inflation seems to be easing and how property values are showing signs of stability. In 2024 Prudential completed investments in two French forward living projects, notably Clichy Rue du 8 mars, in Paris, and Aurientis, a senior living development in Aix-en-Provence. They now have their sights set on projects on Rue de le République in Lyon, Leadenhall in London and Haymarket in Edinburgh, which are scheduled to complete by the end of 2025.

There were mixed views from our presenters on whether bonds would be a good investment in 2025. New Horizon Asset Management gave us their predictions for 2025 and showed us which of their predictions in 2024 had been accurate.

I have spoken to many people in the past about some UK pension providers requiring them to buy an annuity. Conversely, without a UK address, an annuity is generally unavailable to British expats in France. This however is not an obstacle to successful retirement planning. We work with international pension providers such as Novia Global and iPensions who provide low-cost pension solutions, with a range of investment opportunities, and the option to receive payments in Euros or Sterling. If you or someone you know would like to arrange a free, no obligation, pension review, please get in touch.

In France, there is still no finance bill, which is a cause for concern. Recent issues of Le Particulier magazine (I am a subscriber) have been rather thin. There is some financial news however that may be of interest. New PEL accounts, opened since 1st January 2025, are now paying 1.75% interest as opposed to 2.25% previously. Also, your electricity bill should reduce by around 14%, from 1st February.

If you are heading to Bordeaux, or to any of the other major towns in France, you will need to have a Crit’Air sticker in your car as of 1st January 2025.

Finally, as a reminder, please be vigilant when communicating with financial institutions. You can now look on the impots.gouv.fr website for accounts registered in your name, a worthwhile exercise to check for any that you may have forgotten about, or which may have been opened without your consent (unlikely, but worth checking). You will find this in the “other services” tab on the Impots website.

If you have any questions on any of the points made above, please do get in touch.

The year 2024 is drawing to a close. Financially it has been a rather good year in the markets with a lot of our clients’ portfolios doing much better this year than previous years. Even as you start to prepare for Christmas or wind down at the end of the year, there are still some financial points you should be aware of.

The interest rates on the Livret A and the LDDS savings accounts will reduce from 3% to 2.5% next year (probably in February). Even though the rate has dropped these accounts are still a good place to keep money needed for the short to medium term. Any amounts that you do not foresee needing or you want to get a better return from without paying tax, should be put into an assurance vie.

Christmas is a time for giving whether that is to families or charities. Although gifts to friends and family normally have to be declared, for events such as birthdays or Christmas, you can give money to your loved ones without having to declare these amounts to the tax office. This is known as a “presents d’usage”. If you wish to give money by bank transfer it is advisable to put on the transfer order the words “Présent d’usage pour Noel” so that there is no doubt about the fact that it falls under the exemption.

If you haven’t been giving to charity regularly over the year, now is the time to gift money to any worthy causes. Gifts to charities of general interest or recognised as of public utility in France would allow you to benefit from a tax reduction of 66% of the amount gifted up to a maximum amount of 20% of your taxable income. Gifts to charities who help those in difficulty receive a tax reduction of 75% of the amount gifted for amounts under and including €1000. Any amount over €1000 will get a tax reduction of 66%. In both cases the tax reduction cannot be more than 20% of your taxable income.

December is the last chance to add some money to your PER retirement accounts if you have the money to do so and if you want to reduce your tax liability. You can put as much as you like into the PER but the tax benefits are limited to either up to 10% of your annual income up to a certain amount or 10% of the PASS (see below). You may also use any unused amounts from previous years, these will appear on your 2023 tax statement. This amount is deducted from your taxable income before being assessed at your marginal rate.

The PASS (plafond annual de la sécurité sociale) has increased by 1.6% and is set at €47,100 for 2025 or a monthly amount of €3925 (compared with €3864 in 2024). This has an impact on the maximum amount you can receive from daily sick leave pay for occupational illnesses or maternity pay, disability allowances or French pensions. It is also used to calculate the maximum amount you can pay into a PER retirement account.

There are still a few weeks in December and I will be working until 20th, seeing existing clients and meeting new ones. We are going to spend a few days in London and then travel up to Liverpool to spend Christmas with my family.

I hope you have a lovely holiday season with all your friends and family and I look forward to bringing you more financial news and information next year.

Run with Purpose: Peter Brooke and The Spectrum IFA Group Take on the Nice-Cannes Marathon 2024!

On November 3rd, Peter Brooke from The Spectrum IFA Group will proudly run with The Run for Hope Team in the Nice-Cannes Relay Marathon. For years, Peter and Spectrum have embraced this challenge, raising awareness and funds for a cause that deeply resonates with them.

The Run for Hope team, is a partnership between Mimosa and Cancer Support Group 06, brings together a community of runners from beginners to experts, inspiring teamwork and fun to raise funds for cancer support by running in the Nice-Cannes Relay Marathon. Participants enjoy comprehensive training, support and a festive after-party, all contributing to a great cause, the support of cancer patients on the French Riviera.

As experts in financial planning for English speaking expatriates living in Europe, The Spectrum IFA Group provides comprehensive and personalised financial advice, and planning. Peter, who has been with Spectrum for 20 years on the French Riviera understands the complex financial and tax issues his clients face and he and Spectrum are dedicated to helping you navigate these challenges.

By participating in the relay marathon, Peter and Spectrum demonstrate their commitment to the broader community on the Côte d’Azur. Supporting The Run for Hope Team allows them to blend their professional expertise with their passion for making a difference. Cheer on Peter and the whole Mimosa team as they run for hope, showcasing the same dedication they bring to managing your finances.

Together, we can achieve great things—both on the marathon route and in your financial journey!

The Spectrum IFA Group: Running for Hope, Running for You!