Financial update July 2024 – France

During one of the presentations that we received in January at our annual conferences, we were told that this year 40% of the population would be going to the polls. Now, with Macron’s decision for an election, that figure has increased to almost half the world’s population.

Having already voted in the European elections earlier in June, I will now be voting in both the French elections at the end of June and the UK elections in July. Three elections in the one year! The first round of the French elections was on Sunday 30th June and the second round on the following Sunday, 7th July.

What does this mean?
Well, notably it means that any law reforms that had been going through the French parliament have now been suspended. What will be on the parliamentary agenda will be determined by whichever party gets the majority.

So far the markets seem to be less interested in the elections and more interested in the decisions of the central banks. With the European Central Bank reducing its interest rate by 0.25% on 6th June 2024, all eyes are on the Fed and the Bank of England to make a decision about their rates in the coming months.

As from 1st July 2024, Autoentrepreneurs carrying out a non-regulated ‘liberal’ activity under the micro-BNC regime will have to pay increased social contributions. The rate will increase to 23.2%.

Come the autumn months we will have to pay taxe foncière and taxe d’habitation for those with second homes. These taxes increased by 7.1% last year because of inflation and they are predicted to increase again this autumn by 3.9% due to the reassessment of the rental values. There may also be an additional increase if the local authorities of towns of more than 100,000 inhabitants so decide, which will be 1.2% on average.

From 31st July and until 4th December, you will be able to amend your online tax declaration on the impots.gouv.fr website if there is any information you missed out or you realised there were mistakes made but you were just trying to submit the return before the deadline.

Your tax statements will be available over the summer from 24th July and end of August. If you have paid too much tax, your statement will be available between 24th July and 2nd August online or between 24th July and 29th August by post. If you still have some tax to pay after your monthly contributions your statement will be available online from 26th July and 2nd August or by post between 25th July and 23rd August. If you opted not to receive paper statements, you will receive an email letting you know that your tax statement is online.

If you have less than €300 to pay in tax, this amount will be taken on 25th September 2024 but if you have more than this, then the payment will be spread out into 4 payments taken 25th September 2024, 25th October 2024, 25th November and 26th December 2024. You will continue to pay your normal monthly tax payments on 15th of each month but these will be adjusted as from September.