cost of living

[Tacagni]

Hi all we are thinking of moving to France maybe in the next year or two, i like to plan things out as much as possible, having the internet is great but hard to judge the real cost of living, so lets say we buy a 3/4 bedroom place with land (only 3-5 acres) with at least another house with it or 2-3 gites (these will be to do up as i need something to do because i dont want to work). How much per month based on this property scenario would it actually cost to live ( food,water electric,gas,phone, cafe twice a week, tax,running a average car). i would like to know all this because we want to set up an income from the uk to cover the costs of living in France hence not having to work, we are thinking of giving it 5 years to see if we like it.

[lowdrag]

Lovely dream I guess, and hope you achieve it. You only have to ask us who have been here years how our plans have been completely skewed since four years back, what with the exchange rate going from 1.50 to as low as virtual equality, which instantly wiped one third off our (sterling) disposable income here.

Rates or council tax, called taxes d'habitation and taxes foncières here, change from commune to commune and it will pay to do your research - which I didn't all those years back. Result; my commune is 40% higher than the average of the rest of the department. The cost of living isn't easy to calculate compared to the UK, because some things are cheaper and others bloody expensive, like engine oil which is about twice the UK price. Food is IMHO of better quality, and we shop around, using the farm shop for our veg. and buy meat in bulk from a farm, buying a minimum of 20 kgs of beef at a time. Friends rear lambs so we buy on ready prepared for the freezer. It makes a considerable difference, and you learn to keep your eyes peeled at the hypermarkets for promotions.

You want some gites huh? How about adding in a lake because I know that loads of the Brits come over for the fishing, although many camp, but I'd bet that there would be takers for families in the gites. You'sd need to stock with good carp and there'd be plenty of maintenance to do as well. Make sure the outbuildings can get planning permission for change of use, because if not you are going to be well and royally screwed. They just love to see the Brits coming with their rose-tinted glasses and big cheque books.

Modifications to property carries a 5.5% VAT rate instead of 19.6%, but only if the work is carried out by a registered tax-paying "artisan" then you'll pay that rate on the materials and his labour. Be careful to check that want you want doing qualifies, and for goodness sake get a few estimates, because some will make your eyes water.

Income tax, if your income is from the UK, will be zero because you will pay income tax in the UK. in the bar you'll pay about 1.20 a small café and 4.40€ a pint, but drinking at home is pretty cheap since spirits are cheaper and of course so is wine if you shop carefully. Petrol is about the same but diesel a lot cheaper.

There are things you won't have thought of, such as motorway tolls, and last year I spent 600€ on these. But the way of life is fun, the life soft and easy, but don't for the life of you think it is a bed of roses, especially if you don't speak french.

[rdjohn]

Agreeing with most of Lowdrag’s comments, it is worth adding that if you are early retired, you will need to be part of the French social Security system to qualify for healthcare etc. The benefits are good, but the cost in a bureaucratic organisation called RSI will be about 45% of profits. There is a simple system called micro-BIS which allows you to offset 71% of your gite income as costs. I sought early advice, but it has still taken 4 years, and some grief, to get our payments right.

You also need private medical insurance to cover the 1/3rd of costs not met by the state.

We live the year between France, UK and Spain and France is easily the most expensive day-to-day, but then the quality of life, quite easily, justifies it, IMHO. Like Lowdrag, we know of quite a few Brits who have struggled since the fall in value of £Sterling.

[eddie man]

What region are you thinking of choosing? I know lots of Brits here. Some have made it settled in very well. Almost don't want to speak English with me. Then there are others with their little England, happy with sky TV dish, occasional visit to town etc. Biggest problem is the language. You have to speak the lingo, absolute minimum. You will miss out on so much if you don't. I'm very much English, been here since 1996. I have friendly banter on the Footy, got a real roasting on the Rugby, but have intergrated well because I can speak french fluently.

I wouldn't plan out too much. It will spoil the fun. You are bound to make errors, probably some financial, but if you settle and get in with the locals, you will not want to return to dear old England. GOOD LUCK !!

[Le Pop]

I agree with all of the above, but another tax which will jump up and bite you on the bum is when you get planning permission to convert barns into gites. It depends on the total amount of land on your property apparently, but with nearly an acre and converting a large barn into 2 gites I got a once-off bill of nearly €800 (payable over 2 years from when the conversion work starts, not when you start taking punters!). I understand it can run into thousands if you have more land as it is based on a percentage calculation.

One to bear in mind, as I certainly wasn't expecting it...

[Tacagni]

Thanks chaps this is the kind of thing i need to know.

[smifffymoto]

If you don't want to work,I hope you are independantley wealthy as gites won't provide a living, unless you are in a very touristy area.Location is every thing.

Why not buy a business that is already up and running rather than creating one,it really is a buyers market with lots of people moving on or struggling to service debt.