Yes, you should get a French bank account

A friend recently wrote an account of her experience getting a bank account in France and it reminded me to do an update of my various thoughts on this topic beyond my first time getting a personal account, a business account, and the legislation which is the reason for difficulties Americans face on this front: FATCA.  The most important reason to get a French account is that it’s the only way you may hit a snag on your renewal.  Not having a French account signals a lack of integration into society.  You may be able to squeak by with something else, which readers have received inconsistent results with, so the advice I give is to do what definitely works, not “let’s try this.”  Hope is not a strategy, and certainly a poor idea when it comes to renewing visas in France.

While major French banks are understandably reluctant to give a US citizen a bank account because of the high cost of compliance with FATCA, if you hold a residence card (whether a sticker in your passport or the hard card in your wallet), you can, respectfully and calmly, demand a bank account as a right.  Yes, there are low-cost online banks that have no branches, like Boursorama, that will eject you from the application process the minute they find out you are a US citizen (trust me, I tried).

My recommendations, based on personal experience, are BNP Paribas and Societe Generale, in that order.  They both have excellent online banking in the form of web access and brilliant native apps for your smart phones.  My counselors have always been available when I’ve needed help and my cards consistently work in countries all over the world, often offering an extra layer of security by needing me to verify purchases over a certain amount via entering my password on the app on my phone.

What I’ve been told secondhand by readers is that both LCL and HSBC are also willing to grant accounts to US citizens, and feel free to pitch your bank of choice in the comments below.

When you stop in at a bank you’ll almost always be making an appointment for a future date, as the bankers are often booked some time in advance.  If you don’t feel comfortable speaking the entire time in French, make sure to ask for someone who does speak English, and many of the staff do.  They will often provide you with a list of what to bring, which will include, but not be limited to:

  • Passport
  • Carte de Sejour (1st year visa holders – this is the sticker in your passport, everyone else – it’s the hard card)
  • EDF or ADH and/or lease
  • Proof of income
  • Most Recent Tax Filings – both US and French

and expect to pay around 15-20€ a month for even a basic checking account.  It’s part of the deal.

They also won’t let you pick your PIN, but I’ve found this to be a smart policy, because it doesn’t allow a thief who correctly guesses one pin access to all your cards, which Americas tend to use the same PIN for.

An intermediate step in the right direction, if you want to be able to easily transfer in Euros, pay your rent, etc., is a free Borderless Account from Transferwise that allows you to hold multiple currencies with no monthly rate and even includes a free contactless debit card.  But it is not clear to me that statements from a Borderless Account will pass muster with French immigration and no reader has yet let me know that such a strategy works.  The euro-denominated account in the Borderless Account is based in Germany.  I absolutely love Transferwise and use it for other transactions outside of my personal and business ones, which I use my French accounts for.

Three Years On, Part I: Penseés for those planning to move to France

Next month I begin my fourth year in Paris.  I wanted to use the milestone to share some reflections on how I have changed and ongoing tips on how to make the move yourself.  This is the first in a series of four.

I’ve successfully obtained two different classes of visa, long-term visitor (part one and two, and renewal) and independant, also known as profession liberale (part one and two).  It’s been really gratifying to get mail from readers who simply printed out those articles, followed them to the letter,  and got visas. Indeed, I spent so much time researching and documenting the process that I now offer paid consulting services (in person and via skype) to those seeking these visas, and refer those seeking other types of visas to professionals I have grown to know and trust.  Today I want to share, in broad strokes, just a few of the points I touch on when speaking to readers who use my consulting services.

What is a scouting trip?

This is the chance for you to take off your tourist hat and visit Paris as a possible resident.  You go to visit apartments that are in your price range to rent, even if you aren’t going to be in town for a while.  You meet with people who work in your industry (if you have a job) or meet with business owners in your field (if you’re an entrepreneur).  You go to Meetups and Coworking spaces to build a network and get to know the city a bit.  If you need a bit of assistance here, use Shapr.  And yeah, take a daytrip and/or a trip to a nearby country to remind yourself of what’s at your doorstep when you live in this gem of a city.

What is the number one mistake made by those coming to Paris for the first time?

Not having your housing situation locked down.  In fact a friend of an acquaintance showed up and was living in hostels and airbnbs, and was completely clueless as to just how tight this market was (and is), and after 45 days of searching and applying to over 2 dozen places, gave up and went back to her country.  To be fair, I think she came for a job, not for the city, so she wasn’t committed to persevering, financially or emotionally, but I’m shocked to see even graduate students not take a very serious stance on this.  I recently coached a friend through this process who is enrolled in a 2-year graduate program but only had arranged for a 4-month airbnb stay with no backup plan.  Paris Expat found her a great place but witnessing her anxiety reminded me of my heady early days when I was in an airbnb for 90 days before moving to my first apartment in Paris, a little shoebox in the sky, on the 8th floor of a centuries-old building in the 17th.

What is one ongoing nuisance?

Bank accounts.  I’ve written about it here and here and it seems at the moment that unless you are a fiscal resident of France, US citizens are being granted French bank accounts only with a lot of difficulty and documentation.  (Two readers of this blog who are not fiscal residents did manage to get an account at Credit Agricole, after being turned down at Societe Generale and BNP Paribas, among other places.)

There are a few workarounds.  You could, like my friend Patty, use your American credit card to pay for everything (maybe even earning points and miles), and then settle that bill every month from your American bank account, withdrawing petty cash as needed from that account.

Alternatively, if your only major French-focused transaction each month is your rent payment, Transferwise will also allow you to pay a French bank account directly from your US bank account, with a bare minimum of fees, which is a lot more fun that withdrawing hundreds of euros from an ATM and then handing that to your landlord.

If you want a complement to the Transferwise solution you can use Revolut, which issues you a chip and pin card which you can load up in the currency of your choice from the bank account of your choice, all manageable from an app.  Did I mention it’s all totally free? 🙂

What is one thing you cannot do too much of before arriving?

Conversational French.  You can take all the classes you want and know 6 different tenses and a lot of vocabulary, but if you haven’t practiced speaking French, you will be in for a rude awakening when you arrive.  In a way, I parse it as the difference between “studying” French and “learning” it.  You can “study” all you want, but your “learning” will commence when you arrive and get to speak this lovely language every day, and hear the pace, cadence, and the distinct Parisian pronunciation.  Get a private tutor, join a local meetup language group, use an app, and maybe, as a last resort, take classes (they are time consuming and move only as quickly as the slowest person in the class).  As I post this article I am spending a month in the States and to keep my French up I’m attending the local French conversational meetup.

What did you fail to do adequately?

Budget.  There’s always “one more expense” I could not have foreseen.  If I could go back and do it again I would have taken my planned-down-to-the-centime budget and multiplied it by 1.25, thereby giving myself just an extra bit of fat.  As it turned out, the squeeze on my budget in the 11th month of my stay caused me to start another small business to generate more cash flow.  So, in my case the squeeze created a great new thing, but that doesn’t mean I couldn’t have benefited from the “1.25” strategy myself.

Last thing…

Find and develop French friends.  Severely limit your reliance and/or attendance at “expat” bars or events, which ironically use English as the linguafranca.  I’ve found there is no faster way to the heart, stomach, and soul of France than my French friends.  They will help you with your French, ask for help with their English, and give you genuine local reaction to news, politics, and new places you want to try.

The photo was taken by my friend Domo on a recent visit to the Rodin Museum.  On almost every first Sunday when many museums are free, a group of us go out for brunch and a museum visit.  To date we have seen 22 museums together.

I’ve been beta-testing a private facebook group for readers of the blog.  Feel free to join it here.  If you’re interested in my writing in general, you can check out my Patreon page.  

Taxes and Transferwise

I recently had the opportunity to meet with one of the readers of the blog over lunch.  We discussed some of his strategies for staying in France but since he had just recently arrived I asked him to check with some of his connections (he had done work at an accounting/consulting firm) about getting taxes filed.  That’s right – as an American, even if you’re here on a visitor visa and prevented by the terms of your visa from working for a French company in France, the French government requires you to file a tax return.

You read that correctly.  Now, despite the fact that you don’t owe any taxes, you still have to prepare the taxes, in French, according to French accounting laws.  If you don’t have these intersecting skill sets, let me know and I can connect you with an amazing firm that did this for me for the 2014 tax year.  If this has slipped through the cracks for you, let me know asap and I will try and connect you – there’s no fine and no fee to pay (as ostensibly, you don’t have taxes to pay) but you don’t want the French government catching you doing something you are supposed to do.  Better late than forgetting altogether.

2015 will be the last year that I will be considered a “non-fiscal” resident – as part of the path to citizenship (which involves my new visa) is paying taxes.  If you aren’t married to a French person, and don’t pay taxes for 5 consecutive years, you aren’t on the path to citizenship.  I still can’t say I “look forward” to paying taxes, but I do look forward to “being on the path.” 🙂

* * *

Early on in this blog’s life I wrote about opening a French bank account.  It’s honestly something you’re going to need to do if you plan to stay here for longer than 6 months.  However, again pursuant to your visa status, you really only want wire transfers coming in from yourself, not from employers – even if those employers are outside France – this will just cause questions at the Prefecture should they look closely at your bank accounts when you come for your appointment.

Wire transfers are “old-fashioned” in our modern age and carry old-fashioned fees.  The originating bank charges the sender (i.e. YOU sending to yourself), the receiving bank charges the receiver (again, YOU), and then there are currency exchange fees.  However, this system is in the midst of being disrupted by a company started by the guys who built Skype and bankrolled by the likes of Sir Richard Branson.  It’s called Transferwise.  If you click this link your first transfer is free so you can try it for yourself with no risk.  To learn more about how they do this, and circumvent the wire transfer system, watch this funny video.

Hope you enjoy the service as much as I do.  I’m an unabashed user, though I can’t imagine my US or French banks have been happy to miss out on all those fees I used to pay them 🙂