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investing in France

Investment Options for Americans Living in France

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This article by Cedric Bernier of Harrison Brook takes a look at what you should know about when investing in France. If you have any questions or would like to learn more about cross-border financial advice for Americans living in France, feel free to reach out to them.

If you are an American living in France, you might have encountered a few roadblocks while trying to invest in your future. There are a few major reasons why American “persons” (as the financial lingo goes) need careful planning while investing as French residents. In this article, we will review your options so that you can understand what you should do, or more importantly, what you should avoid in your investment choices. 

Rules and Regulations Restricting US-Connected Expats in France 

It is important to know that the regulation adopted in the US called the Foreign Account Tax Compliance Act (FATCA) restricts many Americans from opening bank or investment accounts with foreign financial institutions. It requires all foreign financial institutions to identify accounts held by American customers and report them to the IRS. This restricts the number of firms wanting to service Americans. (This is a perennial topic here at TAIP. See what banks you can use here. -Ed.)

Tax Issues 

Another problem is that the IRS penalizes Americans who hold foreign funds. It discourages Americans from investing in European ETFs or mutual funds since there are special reporting requirements and higher taxes. Americans are taxed on their worldwide income so it is crucial to have a tax-efficient investment portfolio while living in France. Americans are left with few options and mostly invest in individual stocks or bonds. 

It is also important to use the US/France tax treaty to benefit your situation. Some US investments will be taxed only in the US at a favorable rate. Most fixed-income investments have higher rates of returns in the US compared to France. It is usually preferable for Americans to invest in US dollars. 

The only exception is when investing in a French (PER) or US Pension (IRA, 401k). Under the tax treaty, the French pension is only taxed in France and the US Pension is only taxed in the US. That means that you can hold any foreign funds inside the pension without worrying about the taxation of the investment. One mistake we see often is the French Assurance Vie. It is taxed yearly in the US and only taxed-deferred in France. 

Keeping an Account in the US 

We have been noticing a wave of US investment firms restricting accounts of Americans living in France. I personally worked for Wells Fargo Advisors in the US for many years and we were one of the first ones to close accounts for all American expats. While you may have your own reasons for maintaining a US address for personal or business reasons, if that’s not the case for you, we recommend using a firm that will allow you to use your French address. This will give you peace of mind that your account will not be closed. You might also wish to avoid paying US state taxes. 

So What are My Options? 

  • Investing in individual stocks and bonds. If you don’t have the experience doing it you might need the assistance of a Financial Advisor in order to create a diversified portfolio.
  • Investing in a US ETFs portfolio. This can be achieved by working with a cross-border Financial Advisor. 
  • Investing in European funds and platforms. This will most likely be more costly and taxed at a higher rate. We would not recommend it. 
  • Keep funds in a savings account (Livret A). The interest rate is below inflation and there are limitations on how much you can deposit. 

Did you enjoy this article? TAIP is 100% reader-supported through tipping. If you want to leave us a tip of any amount it would be highly appreciated. These tips help support our efforts to keep TAIP an ad-free environment. Just as at a cafe, the tips are split evenly among the team.

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How I Got A Job In France (And How You Can Too)

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Do you remember the quote from Alice in Wonderland that goes:

Door: “Why, it’s simply impassible!

Alice: Why, don’t you mean impossible?

Door: No, I do mean impassible. (chuckles) Nothing’s impossible!”

Keep this in mind if landing a French work visa is your goal.

To be frank, it isn’t a matter of finding a nice company that will sponsor you. There are tons of those, but they’re not in control of whether you’re granted one or not. It’s quite nuanced, in fact. The number of jobs that can provide the needed prerequisites where the French government will allow you to work for a French company is very few, but they do exist. Even for the (seemingly) disadvantaged.

I don’t have a degree from a university and have few formal qualifications. If you feel your working background will hold you back, don’t. There are more options than you might guess.

The Dream vs. The Reality

A couple of weeks before my arrival in Paris, a friend called me to share a job listing she stumbled upon. Actually, she was looking for a new job herself, so it was touching she thought of me at all. And to my surprise, the position forwarded to me was work I could realistically be hired for in France: Customer Care Specialist USA.

It wasn’t the most glamorous job description, but it sounded like something I could qualify for. I was really excited.

Living in Paris, I’ve often met French people who have cool jobs. I have multiple friends who work for Chanel, friends who are lawyers, illustrators…I learned a friend was recently written up in Vogue.

The French job market is primarily reserved for the French, and if you’re shooting for a position like one of those I mentioned, you’ll have to stand out in greater, arguably unreachable, ways. Be reasonable about what kind of work will suit you here. What qualifies you for work in the States may not qualify you for work here in France.

Ask yourself, what can you bring to the table that a qualified French person can’t? Maybe it’s your command of the English language (though many Parisians speak English well) One step further, maybe it’s your understanding of American culture which sets you apart.

The “geared towards the US market” job description is crucial because companies need to justify why a foreigner is the best choice for their available position. They must prove to the government that a foreigner is more qualified for this role than a French citizen. They’re required to be thorough to the point of advertising their listing in the post for three weeks. Since the vast majority of French citizens are not (also) American, I felt I had an advantage with these jobs.

Use Growing Up in America to Your Advantage

American culture is generally optimistic compared to other cultures. We are often willing to take risks in ways people from other parts of the world simply wouldn’t. It could stem from the idea that Americans can’t afford to be lazy. I mean this literally. Healthcare isn’t heavily subsidized (unless you’re elderly or destitute), government aid isn’t as accessible (see healthcare), university beyond community colleges are outrageously priced (and tied to the sweet slush funds of student loans), etc. If you don’t work, you simply do not eat.

In the case of the position I was going for, why would they go to such great lengths to find someone for this position, and why was it so difficult to fill? It requires no degree and little to no experience.

The official statement is, they need an American who understands American culture.

The unofficial statement is, they need an American to deal with the Karens.

My company is a tech startup, which meant it was possible I could qualify for a French Tech Visa. A quick Google search showed this visa is valid for four years and renewable. If I could go this route, I could bypass the “justification” step in applying for my work visa.

Customer service is a developing concept here in France (here on the blog we’ve got both positive and negative experiences with it). According to my French friends, it’s much better than in the past, but hasn’t matured to the point we know so well in the States. Although French culture has a rich emotional vocabulary, it’s still developing the necessary skills to handle the demands of the very odd “customer is always right” mentality.

Teaching English is a go-to for many Americans. However, your chances of being able to settle in France while teaching English are slim. There is no shortage of English teachers (getting paid right around minimum wage). Being a native English speaker can still earn you a valuable place here, however.

Tourism is huge in Paris. I met a German guy who settled in Paris working for German tourism. There is no shortage of Americans working in the tourism sector, which is coming back strong after its toughest two years since probably the Second World War. Frankly, there are plenty of avenues an American could take in that field.

I had already received my Long-Term Visitor Visa and gotten rid of all my stuff, so I didn’t know what to expect if I chose to move forward with this job posting. I decided it couldn’t hurt to send them my CV.

It’s important to note that to obtain the visitor visa, you must write and sign a letter to the French government promising not to work for a French company in France. Since I was attempting to do exactly what I attested to not doing, I would only move forward if everything was legal. 

A few days after sending them my CV and cover letter, the company emailed me to set up my first interview. We met on FaceTime, and I was upfront and transparent about my legal status in France. I was happy to find out they were willing to work with me on this, so we continued to the next part of the hiring process. I mentioned I would be in Paris the following week, so we had our second interview in person.

I’m the first person to fill this position so my company let me choose my schedule and my salary. I can work from home, or anywhere for that matter. Although I was hired, and was ready to start as soon as possible, my current visa status meant I couldn’t be contracted with the much sought-after CDI. They suggested a band-aid solution that could work long-term, freelancing, which is one more piece of evidence that contradicts the line given by many in Facebook groups and other places that one cannot legally work remotely while in France on a visitor visa. In this case, I was working remotely for a French company, and happened to choose to live in France. I never said I wouldn’t work remotely for a French company, and you need to have no legal status in France (or any country) in order to work remotely for a French company.

Freelancing involved writing a contract between me and the company outlining the terms of indefinite freelance (and in my case, also remote) work. In order to get paid, I simply personally invoice the company through their US subsidiary. I don’t get paid in Euros and since income paid to a US citizen for a remote French job isn’t directly concerned with French taxation, that’s one less wrinkle. That income will indirectly show up, as part of filing taxes in France as a foreigner is declaring your overseas income, but that’s a single line item, and collects all my sources of income without further details, and in any case, as already noted, it’s not possible, legally, morally (or logistically), for the French government to audit where the remote workers of French companies live or work. What they are concerned with is the legal status of those who do live in France, and I was (and am) in France on a valid visa.

As long as your pay for a given remote employer is connected to your fiscal address in the US, you’re good to go. 

The Reality

There are a few disadvantages to the freelancing option, but if you’re looking to settle in France, this is a good first step. Like I mentioned earlier, it doesn’t provide you with the magical CDI and many landlords won’t accept tenants who freelance. I obviously don’t have the famous five paid weeks of vacation either. Don’t get me wrong, there are many pros that outweigh the cons. The most obvious being stable work.

Thankfully, for the sake of training, everything is in English. This doesn’t help my French at all, but I mention this because of a valid point my friend brought up the other day. We were talking about a possible relocation for her to Paris, and she was hesitant about working for a French company speaking French. The idea is intimidating, but the reality is not so.

You were hired because you possess a skill that others here don’t. You’re an asset. Further, they’ve jumped through the hoops necessary to get you here, so they want to keep you. Even if it means for a while they speak English, so be it. The reality in French tech, by the way, is that the office language usually is English, even if the majority of the workers are French.

The fact that you’re a foreigner is not a surprise to them, and generally (minus the stubborn few) people are quite nice here. The changes and transitions involved can be uncomfortable, but if you’re determined to grow past all that, take my experience and move through it. If it’s right for you, it’ll work out, and it’ll be easy.

I have to return to the States to change my visa next year (I failed to check the 12+ month box when applying, and clicked the 6-12 month one, which gave me a nonrenewable visa), so my next steps won’t concern me for a while. And if I do pick up that French Tech visa, I promise I’ll explain how to get that too.

In the meantime, I’m enjoying carving my own way in this country and city.

Photo was taken while working remotely in Montmartre.

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An Introduction to CAF (Caisses d’Allocations Familiales)

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A friend of a friend told me that Shelby would be studying in Paris some time ago and we met and took a walk around Paris and hit it off.  She ended up doing some work for me as well before finishing her studies and heading back to the States.  In my quest to continue to try to fill in some blanks for those coming to France, she’s been kind enough to pen this brief essay on CAF, a benefit available to foreigners.

What is CAF

Caisses d’Allocations Familiales (CAF) is a housing subsidy available for students of French institutions.

How Do You Get It

In order to get CAF, you must be a student living in student housing (e.g. Cité Université and CROUS), an apartment, a furnished rental, a studio, or a flatshare, and have a rental agreement in your name (not a sub-let). For private accommodation, your landlord will need to sign the application, which they might refuse to do given possible tax scrutiny by CAF. During your housing search, make sure the potential landlord will accept CAF. This is especially important if you are looking at a flatshare on Appartager or Le Bon Coin. However, if your apartment is eligible and you have roommates, they can (and should) also apply for CAF. 

Living in Cité Université or CROUS housing as an international student will make your visa and CAF processes much easier as they are designated specifically for international students and often will help you prepare the forms. Cité Université even has its own visa and CAF office and can be very helpful if your French isn’t great yet.  

The Application

The website to apply for CAF is entirely in French. 

In order to apply for CAF you’ll need to have the following documents available: 

  • Photocopy of your passport
  • Photocopy of Birth certificate (and translation — you should have it as part of your Student Visa) 
  • French bank account details (RIB) 
  • A document that proves your tenancy (an attestation de hébergement, electric bill, phone bill with your address. A rental agreement will not work)
  • Completed OFII or proof of school enrollment and a copy of your EHIC (European Health Insurance card)

In the application, you will need to have to declare your total income for the last two years and it will be helpful to have your home country tax returns.

How Much Do You Usually Get?

You will start receiving CAF the month after your lease begins (e.g. move in on the 1st of August, you’re CAF-eligible on the 1st of September). Importantly, you can get CAF retroactively, so if you don’t finish your application until two or three months after you start your lease, you can still get CAF for those months as long as you start your application the first month. 

Generally, students receive around 200 euros per month from CAF, but it scales based on your income (less CAF for higher income). You can also complete this simulation to see how much money you might receive. This money goes directly to your bank account which means you don’t necessarily have to use it for rent. It is likely that you will not receive payments right away as the French bureaucracy needs time to process your paperwork, but you will still receive payments for the entirety of the year, sometimes in the form of a lump sum. 

Shelby completed her Masters of Public Health at the École des hautes études en santé publique in Paris. During her time in Paris she lived in the 18ème, 17ème, 19ème, and 2ème and still, like Stephen, sees very little reason to go to the Left Bank, unless it’s for a party (and even then…). She works now as a public health strategy consultant at a boutique firm in New York City, but is looking forward to taking advantage of the new work from “home” policies created by Covid. She currently lives in the Upper West Side of New York City with her orange cat, Mauvo.

Photo by Christian Dubovan on Unsplash

TAIP is 100% reader-supported through tipping. If you want to leave us a tip of any amount it would be highly appreciated. These tips help support our efforts to keep TAIP an ad-free environment. Just as at a cafe, the tips are split evenly among the team.

walking in paris

Meet Your Paris Greeters

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Every now and then my readers tell me about something interesting that I feel needs to be better known and I’ll often ask them to write about it themselves.  Craig Ziegler was actually kind enough to follow through.  Enjoy!

Before my last visit to Paris I learned of the International Greeters Association, a network of organizations around the world whose mission is to introduce visitors to volunteers who will take them on guided walks, at no charge, through their areas and give them a first-hand look at the places they call home. I was surprised to see how many cities had a Greeters organization and pleased to see that Paris had Paris Greeters.
Paris Greeters works like this: once you register with the website, you can request a walk (they don’t call them tours) with a volunteer. After taking into account your interests, language preference, mobility, the date of your availability, etc., a coordinator will assign you to a volunteer who will take you on a walk through his/her neighborhood in Paris. You don’t get to choose your walk; they choose it for you!
I signed up and received an offer of a guided walk through the Bastille quartier with Françoise. Even though I had walked through this area many times over my 15 years of visiting Paris, I accepted the assignment just for the experience. I couldn’t be happier with how it turned out.
I met Françoise at the Ledru-Rollin Metro stop at 10h00 on a Thursday. She was a wonderful walking companion and her English was excellent. Over the next 2 1/2 hours of strolling through the eastern Bastille area, she showed me beautiful courtyards that I had never seen, as well as artisan areas that dated back to the Revolution.  She was so knowledgeable about her neighborhood and she had access to all the private properties. We walked past a historic dance hall on rue de Lappe, the Balajo, that was closed that morning, but she unexpectedly talked the custodian into letting us go inside for a look around at this wonderful slice of Parisian life.
We ended our walk at the Marché d’Aligre, a historic, multi-cultural, covered market in the 12th arrondissement with an extensive flea market outside. She ended the walk there by telling me how proud she was that so many cultures lived together in Paris in peace. She believed that the market area demonstrated this better than her words could explain it.  Paris Greeters do not charge for these walks with visitors, but a visitor can make a contribution to the organization if one would like. I donated 20 € and received an email receipt from the organization shortly afterward.

My walk with Françoise was a wonderful experience and I will surely arrange another such walk in some quartier of Paris when I return this year.

Postscript: This walk occurred eight days before the attacks of November 13. I wanted to contact Françoise after the attacks to get her perspective; the Bataclan is only 2.5 kilometers from her Marché d’Aligre. I didn’t have the heart to call, but I know she was devastated.
Photo by Jeff Frenette on Unsplash
Did you enjoy this article? TAIP is 100% reader-supported through tipping. If you want to leave us a tip of any amount it would be highly appreciated. These tips help support our efforts to keep TAIP an ad-free environment. Just as at a cafe, the tips are split evenly among the team.