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The US and France have many longstanding political and economic alliances, as well as one of the most valuable trade and investment relationships in the world. Currently, there are no restrictions for American citizens who wish to transfer money from the US to France and convert USD to EUR for their personal or business needs. This is partly due to the working trade agreement that the US and the EU have in place.
France has strict regulations governing the purchase of real estate or land for both citizens and non-citizens. Obtaining the services of specific professionals is required for real estate purchases. Upon completion of the required documents and procedures, a US citizen may then arrange to transfer money from the US to France to complete their property purchase. Knowing the required real estate professionals that a buyer must work with is important when preparing to purchase property in France.
An agence immobilière, or estate agent, is qualified to carry out property transactions on behalf of both the buyer and the seller and is commonly used in France for real estate transactions. The agence immobilière provides all information on estimated fees and property charges for the purchase, and also carries professional insurance, ensuring that their clients are protected in the event that anything goes wrong with the transaction.
The notaire, often called the maître, is responsible for preparing the property documents, including the compromis de vente, or sales contract. The maître also confirms the seller’s title and is responsible for ensuring that there are no existing mortgages on the property. The maître provides a financial guarantee to their client through indemnity assurance.
The compromis de vente is always written in French, though the buyer can request an English translation. The sales contract is a legal contract under French law, and identifies the vendor and the buyer of the property, a full property description, the purchase price and breakdown of fees, the sales agent and maître details, and details of the financing and the mortgage. If there are let-out clauses, the details of these will also be included in the compromis de vente.
American citizens living abroad must declare their earnings and file tax forms annually and are obligated to pay US taxes on their worldwide earned income. However, by French law, a person is considered a tax resident from the day they arrive, whether their stay is temporary or permanent. If staying and working in France for at least 183 days, an American citizen will be required to pay taxes to the French government.
The US and France have a tax treaty in place to help citizens of both countries who are living and working abroad to avoid double taxation. American citizens who pay taxes to the French government may be eligible to receive tax credits with the American government. If taxes are owed, then keep in mind that there are no restrictions to transfer money from the US to France.
Tax rates in France are capped at 45%. This means that if you go over earnings of EUR151,261, then you will be liable to pay the full 45% tax rate. Residents have a tax rate that starts at 0%, but non-residents do not have this in place and have a starting tax rate of 20% regardless of income level. Due to the double taxation treaty, there is the possibility that the US will give out tax credits to ensure that double taxation does not take place.
If planning to study in France for less than 90 days, American students do not need a short-stay visa. For study periods of longer than 90 days, a student visa is required. Once in France, the student must visit their local préfecture to validate their student visa and obtain a resident permit. There are no restrictions on foreign money transfers from the US to France and on converting dollars to euros to pay for student fees.
US citizens living in France are eligible to vote by absentee ballot in American federal and local elections. American citizens must first register for absentee balloting with the last US precinct in which they were registered, and will then be eligible to vote by absentee ballot.
France requires all residents to have health insurance. The majority of residents in France will qualify for the state health insurance, under the sécurité sociale. To qualify for this service, American citizens living in France must register with CAPM (Caisse Primaire d’Assurance Maladie) to receive coverage. They must provide a variety of information, including proof of residency and income, which is usually done by submitting a French tax return.
It is recommended that private health insurance be acquired, as the CAPM does not cover all medical costs. This is very similar to the situation that is in place for US residents within the US.The US and France, part of the EU, have one of the largest two-way trading relationships in the world. Transatlantic goods and services trade flows between the US and the EU were valued at approximately $2.7bn per day in 2012, with significant amounts of USD to EUR traded every day. While the US and the EU collaborate on a number of global and regional initiatives to support increased trade, investment and global safety throughout the world, the most recent of these initiatives is the Transatlantic Trade and Investment Partnership, a trade and investment agreement between the US and the countries in the EU to help reduce tariffs and trade regulations. Combined, the EU countries rate as the second largest imports market for the US, with a value of $262.3bn in 2013. US imports to the combined EU countries accounted for 16.6% of overall US imports in 2013. France was the fourth largest import market within the EU, accounting for $32bn of the total amount of imports from the US.
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