Moving back to Europe

[Retch The Grate]

congrats on the move going smoothly with a little bit of favorable financial movements as well.

 

[NW-Bound]

... Statistically, my new "income" (what I withdraw from investments) puts me in the upper middle class here! I'd be just middle class in the U.S.

According to something I just looked up on the Web, the average income is 41% higher in the US than in France. The income inequality is also slightly higher in the US than in France.

The wealth per capita is also higher in the US, by about 52% higher.

 

[Moemg]

Update:

So I have decided to create myself a cover "career" as an English/French translator. I created a website and printed some business cards and I tell people that I work from home. In reality, I don't advertise my services and don't plan on making any money from this career, but now people know what to make of me and they leave me alone.

Maybe it would be fun to occasionally do translating . A good way to meet people .

 

[Dreamer]

I am happy that everything is working out so well for you.

 

[FIREd]

According to something I just looked up on the Web, the average income is 41% higher in the US than in France. The income inequality is also slightly higher in the US than in France.

The wealth per capita is also higher in the US, by about 52% higher.

The problem with those numbers is that the volatile euro-dollar exchange rate has a huge effect on the results. And we need to take into account the purchasing power of each currency for a better comparison.

But based on my own experience, incomes are indeed higher in the US (in terms of purchasing power) than in France. I live however in one of the wealthiest parts of France due to the proximity to Switzerland and incomes here are higher than the country's average, but the income gap with the US is still perceptible.

In terms of wealth, when we had the wealth tax only 1% of households had a net worth over the threshold for paying the tax, which was 1.3M euros (~$1.5M).

 

[FIREd]

This may be a dumb question, and I apologize in advance if it is...since you grew up in France I assume French is your native language? I am sure you are (or were) fluent in French, have you had any issues with regaining your fluency now that you have returned to France? Did you get rusty or out of practice? Have you encountered any changes such as new slang or new word usages that you had to learn? Does anyone detect that you speak French with a different accent since you lived in the U.S. for so long?

French is indeed my native language. I had no issue regaining my fluency as I spoke French with my family (who remained in France) on a regular basis. My accent is still true and has not been changed by years of life in the U.S. (where I spoke English 99% of the time). That being said, I sometimes mix up the two languages and use English idioms or words that do not translate well in French.

One recent exemple: I was having a serious conversation with a French speaker about "preservatives" in food. I used the French word "preservatif"(which at the time sounded like it would be the right translation for "preservative") instead of the proper French word ("conservateur"). Suddenly the person I was talking to started to laugh uncontrollably. I had forgotten that "preservatif" meant "condom" in France. They are indeed best kept out of food. I realized my error as soon as the word flew out of my mouth but it was too late.

However, I have become quite rusty when it comes to writing in French. I would have a hard time writing a formal or business letter at the moment. And I am discovering new slang words everyday. Thankfully, my teenage niece is here to help me catch up.

 

[FIREd]

Update:

The city where I am purchasing my new condo has waived its preemption right so the sale can move forward. The closing date is now set for next week. It will have taken almost 3 months between making the offer and closing on the deal. It seems pretty standard here. Finding contractors to carry out the renovation work within a reasonable amount of time is proving difficult. Most are not available until fall. So I might have to do most of the work myself.

I have now been in France for just over 3 months, and I have become eligible for health insurance coverage. I need to make an appointment to apply in person. The fact that I don't have a job complicates things a bit. The status of "early retiree" is not recognized by the French administration and it is a bit of a hurdle to claim benefits.

 

[REWahoo]

Update:

I have now been in France for just over 3 months, and I have become eligible for health insurance coverage. I need to make an appointment to apply in person. The fact that I don't have a job complicates things a bit. The status of "early retiree" is not recognized by the French administration and it is a bit of a hurdle to claim benefits.

I thought you were an "unemployed interpreter"? If that doesn't work, try "international man of mystery".

 

[NW-Bound]

Thanks for the update.

I read the blog of a couple who moved to France. Although the wife is from a Scandinavian country and part of the EU, it took a bit of work for them to get a bank account, even a cell phone plan. It took them 3 weeks to get paperwork approved to buy a car.

 

[Alan]

Good progress on the purchase of the house, fingers crossed it goes through on time.

Interesting that health insurance should somehow be related to having a demonstrable stream of “normal” income from work or pension or such, rather than a “person of independent means”.

 

[FIREd]

I thought you were an "unemployed interpreter"? If that doesn't work, try "international man of mystery".

"International man of mystery"... I like the sound of that. Off to print new business cards .

 

[NW-Bound]

Do you speak French with an accent now? Need to add that to confuse people.

 

[FIREd]

Do you speak French with an accent now? Need to add that to confuse people.

Not that I know of!

 

[BigNick]

I have now been in France for just over 3 months, and I have become eligible for health insurance coverage. I need to make an appointment to apply in person. The fact that I don't have a job complicates things a bit. The status of "early retiree" is not recognized by the French administration and it is a bit of a hurdle to claim benefits.

You could set up a micro-entreprise and thus become an "auto-entrepreneur". Just say you're a "business consultant" or something. There is a small fixed tax of about 150 EUR/year to pay, and then you pay about 22% of each bill in "charges sociales". If you pay 2% more, you can also avoid declaring the income for tax at the end of the year. You don't have to register for TVA; you don't charge it and you can't deduct it --- in fact you can't deduct any costs at all. For intellectual work (as opposed to, say, pet grooming with supplies to be bought), it's limited to a total revenue of about 32000 EUR/year.

This is handy for several reasons. First, you are in a "catégorie socio-professionnelle" that won't make the computer (or the head of the person you are speaking to) explode. Second, you are entitled to medical cover from the Sécu, with a Carte Vitale, with no minimum revenue other than that you must issue one invoice every two years. Third, if you occasionally do a bit of paid work for someone, you have a legitimate basis for billing.

 

[W2R]

Update:

The city where I am purchasing my new condo has waived its preemption right so the sale can move forward. The closing date is now set for next week. It will have taken almost 3 months between making the offer and closing on the deal. It seems pretty standard here. Finding contractors to carry out the renovation work within a reasonable amount of time is proving difficult. Most are not available until fall. So I might have to do most of the work myself.

Wonderful!!! I am so happy for you. I know you will love being settled in your new condo. Even my full priced offer in cash took eight weeks here in Louisiana due to lengthy repairs needed. So really three months isn't that bad (although I know it must have seemed like forever).

As for the renovation work, after you have lived there a short while it may not seem as necessary as it seemed before. It only took me about a week before I decided I was fine without granite countertops in the kitchen. Another possibility is that maybe one of your relatives or old friends there might know a workman who would do the job right away as a favor.

I have now been in France for just over 3 months, and I have become eligible for health insurance coverage. I need to make an appointment to apply in person. The fact that I don't have a job complicates things a bit. The status of "early retiree" is not recognized by the French administration and it is a bit of a hurdle to claim benefits.

Good luck with that! I am sure there must be a way to clear that hurdle although I do not have a clue about such things.

 

[FIREd]

Interesting that health insurance should somehow be related to having a demonstrable stream of “normal” income from work or pension or such, rather than a “person of independent means”.

It is complicated. But, in basic terms, the system is built around the idea that people either work or are retired (as in they are of retirement age and receive a retirement pension).*

In both cases, a percentage of their income is withheld by the government and in return they get health insurance coverage. Not so for people of independent means. The same percentage is withheld from our passive income but we get nothing in return. There is however a way to get coverage for people with non traditional income sources. That system was originally intended for the poorest people who did not have either a job or a pension. Those people pay nothing for coverage. Early retirees can usually get coverage through that system since they have neither job nor pension income. But it is means-tested and it requires early retirees to pay an additional 8% of their passive income in taxes.

*Dependents can get coverage through a worker or retiree.

 

[FIREd]

You could set up a micro-entreprise and thus become an "auto-entrepreneur". Just say you're a "business consultant" or something. There is a small fixed tax of about 150 EUR/year to pay, and then you pay about 22% of each bill in "charges sociales". If you pay 2% more, you can also avoid declaring the income for tax at the end of the year. You don't have to register for TVA; you don't charge it and you can't deduct it --- in fact you can't deduct any costs at all. For intellectual work (as opposed to, say, pet grooming with supplies to be bought), it's limited to a total revenue of about 32000 EUR/year.

This is handy for several reasons. First, you are in a "catégorie socio-professionnelle" that won't make the computer (or the head of the person you are speaking to) explode. Second, you are entitled to medical cover from the Sécu, with a Carte Vitale, with no minimum revenue other than that you must issue one invoice every two years. Third, if you occasionally do a bit of paid work for someone, you have a legitimate basis for billing.

That's exactly the plan with my translator "business". Create an "auto-entreprise" and issue a couple of invoices a year to keep it a going concern.

By the way, the reaction of the civil servant dealing with someone with no "catégorie socio-professionnelle" is spot on.

 

[W2R]

Early retirees can usually get coverage through that system since they have neither job nor pension income. But it is means-tested and it requires early retirees to pay an additional 8% of their passive income in taxes.

Wow, that is more than all of my health care costs combined, excluding dental. All of these including medical insurance, out of pocket, and supplies that are not covered, add up to 5% now that I am on Medicare and actually they were only 7% prior to Medicare.

 

[FIREd]

Wow, that is more than all of my health care costs combined, excluding dental. All of these including medical insurance, out of pocket, and supplies that are not covered, add up to 5% now that I am on Medicare and actually they were only 7% prior to Medicare.

My explanation was a bit simplistic. First, there is a ~10,000 euro exemption on the taxable income used as the basis for the 8% tax. Furthermore, just like for the ACA, the careful use of tax-deferred accounts and income management can help reduce the bite. In my case, my expenses are pretty low, so I don't need to crank up a lot of taxable income. I had calculated that I would pay less than 1,000 euros a year for health and dental coverage.

 

[Teacher Terry]

When we retired 25% of our income was for health insurance.

 

[Bestwifeever]

That's exactly the plan with my translator "business". Create an "auto-entreprise" and issue a couple of invoices a year to keep it a going concern.

By the way, the reaction of the civil servant dealing with someone with no "catégorie socio-professionnelle" is spot on.

Watch out—someone is going to want to hire you for your translation services and the next thing you know, you’re kicked out of the RE Club!

Such great progress—I imagine spring will be beautiful there.

 

[FIREd]

Update:

I finally closed on my new condo on Wednesday! This is a 540 sqft, 1-bedroom condo with a great view and lots of natural light. It needs a bit of updating, however. To me, it feels spacious enough - even after having lived in a 2,500 sqft house.

I now have the electric and water services turned on. Signing up for both was done entirely online. Supporting documents were uploaded directly to the utilities' websites. No credit check needed.

All of my bills (cell phone, insurance, highway tolls, electric, water, Netflix, etc....) are now paid automatically from my checking account (payees withdraw money directly from my account). It is a bit unnerving to give so many people access to my account but this is a pretty standard way to pay bills in France.

So far, I have functioned just fine with just one debit card here. I can't see ever needing a credit card. Debit cards are much more popular than credit cards here.

I am also preparing my US tax return and I have to learn how to deal with FATCA and FBAR filings (since I have foreign bank accounts).

 

[REWahoo]

... I have to learn how to deal with FATCA and FBAR filings...

I initially read that second acronym as "FUBAR". Hope that didn't jinx you.

 

[Alan]

Thanks for the update, sounds like things are going well.

Don’t stress out too much on FBAR and FATCA, they are pretty straightforward. Remember that as an overseas filer you have an automatic extension until June 15th for both FBAR and your IRS tax return.

 

[Totoro]

All of my bills (cell phone, insurance, highway tolls, electric, water, Netflix, etc....) are now paid automatically from my checking account (payees withdraw money directly from my account). It is a bit unnerving to give so many people access to my account but this is a pretty standard way to pay bills in France.

If you disagree with a bill, you can simply reverse the charges, I believe up to 60 days after. Normally just a click of a button in your online banking.

So far, I have functioned just fine with just one debit card here. I can't see ever needing a credit card. Debit cards are much more popular than credit cards here.

For some online & international purchases credit cards are nice. They also function typically as deferred debit (fully paid off every month). So it's nice to have one, but expect to use it a few times a year at most. If you look around there should be free ones available.