Making a Living in France: First-hand Experience
First-hand experience into making a living in France from Sally Stone who runs a property management and catering business...
Having had a French holiday home for several years, my husband and I decided to live and work in France after we spotted a niche appropriate to our skills. However, the learning curve was more like a vertical rock face up which we had to climb, without any safety equipment, and with any directions being in a foreign language. At various times we have consulted FPN articles, and hope the knowledge we have gleaned over the years could help others setting up in business. While not providing all the answers, this article might help you work out some of the questions. Making a living in France is not an impossible dream, but it’s not la vie en rose either. Perhaps the first thing to point out is how high unemployment is overall – in our area it’s 7%, quite low in comparison to other parts of the country.
Permanent contracts are difficult even for the French to obtain. Employing people can be a minefield, with the law coming down on the side of the employee. Those of us ‘étrangers’ who need to earn a living in France mostly turn to running a small business. Many British people moving to France are capital rich, but income poor – and your capital can quickly erode if you are renovating a house. What seems like a huge lump sum on your arrival in France can be spent more quickly than you thought possible. It’s not just the need to earn an income that pushes people to start their own business. Once the novelty has passed of not needing to get up everyday and drive to the office, you might get bored, or feel isolated. We found a natural ‘entrée’ to the local community when we started our business. Bear in mind that you are working more for lifestyle and freedom than for financial rewards – with all the social security contributions and taxes we pay, we have to hold on to that thought! Living costs in France are roughly equivalent to the UK. Working in France is a huge subject – our emphasis is on the independent service provider using the ‘micro-enterprise’ regime, the most simple form. As for the myth that there is no word for ‘entrepreneur’ in French, France is traditionally a country of independent traders.
• Research. Work out what you could do, how, and for whom. Plan carefully – around 80% of new businesses in France fail. It’s a tough market and you have to
think around the subject. This is not a time to reinvent yourself – you’ll have enough pressures. A change of direction is fine, but not a complete u-turn. The most successful people use their old skills, albeit in a new way. Is there a niche? If so, is anyone else doing it? Look in your area for people doing what you want to do. Research the ‘competition’. Who are your potential clients? Don’t rely on your fellow countrymen living in France.
• Forward planning: Try not to fall in love with an isolated house, and don’t forget the power of networking. If you think you may need to work in the future, its even more important not to be geographically isolated. One of those involved must have a certain level of French – could you talk to a French stranger on the telephone and make yourself understood? Learning from a native French speaker will teach you protocol as well as language. And don’t assume it will be easy to pick it up once you are there.
• Trade or commercial service? Are your qualifications accepted in France? You might need to get accreditation from your professional body before you come to France. Artisans with a recognised trade qualification will need to register with the Chambre des Métiers, commercial workers register at their Chambre de Commerce. If one half of a married couple is registering, the other one has to sign that they are aware their partner is starting a business. It’s important to register your business correctly as your ‘Siret’ number tells the authorities what you do – if you’re not registered correctly, your insurance could be invalid, and you can get in as much trouble as you would if you were working illegally. We know someone who passes himself off as a builder of sorts, but his registration states he runs a hotel without a restaurant.
• Documentation you will need: Passport; marriage certificate (you may be asked for this to be officially translated); divorce certificate if applicable; proof you live in France (eg taxe foncière); requirement to sign a declaration that you don’t have a criminal record; carte de séjour (residence permit) – although this isn’t legally required anymore, some offices may still ask for it.
• Tax regime: Many people start as a ‘micro-entreprise’ which trades simple book-keeping for an estimated percentage of your income being regarded as costs (55%) and the balance (45%) as profit. It is (just) possible to operate this without an accountant, but we would advise you find an accountant recommended by French friends who are versed in the art of tax avoidance. Small businesses can range from the tiny service provider to a builder requiring a limited company and the insurance to provide a 10-year guarantee – take advice on precise accounting options from a French accountant. Do not accept local opinion being passed off as fact.
• When to start: The French tax year runs from January to December, so it makes sense to start your business in the New Year, or at least to postpone it if you are contemplating starting in November. French VAT (TVA) depends on earnings’ thresholds, and isn’t chargeable to clients if you are on the lowest rung of the business regime. Watch your turnover figures as you start earning – if it looks as though you will exceed the annual threshold for your tax regime, you must get immediate help.
• Social security contributions: These are higher than you might expect, sickness, family allowance (URSSAF) and retirement being the three directions your money goes in. Contributions may seem heavy, but you get what you pay for. In addition to the fixed demand, you will probably want to contribute to a medical top-up insurance policy, otherwise you will only be reimbursed part of the medical bills (lifelong conditions are subject to a 100% reimbursement).
Do your sums carefully to see if it will be to your benefit to remain contributing to the state pension scheme in your country of origin. If you are a husband and wife team, you may not both need to make the same contributions for the French retirement pension, which doubles the amount you pay out and may only pay back enough to buy a baguette. Pay as much as you can, monthly, but beware, January to October is a set figure, and if the authorities realise your contributions have not been enough because your turnover the previous year was up, they will demand the balance in November and December – which doesn’t make for an easy Christmas.
• Marketing: Once you have sorted what, where and for whom – tell everyone about it. It’s amazing how many small businesses neglect their advertising. The internet is a powerful tool, but get professional help with your website and critiques from friends before you ‘go live’. Your publicity material should carry your Siret number and needs to be understood by a French national, so bilingual please! Don’t hide your light under a bushel. Think of even the small details – a cheerful answerphone message or a wellproduced business card can make all the difference.
• The ups and downs: On the downside, one of us spent months registering the business, while the other one wondered what on earth was taking so long! Then there was managing the heavy telesales calls you receive once your registration is through. Cold-calling is a real test of your French, and its difficult to sort the obligatoire from the non-obligatoire! And as for that dream of working together – if you have always complained about the boss at the end of the day, where do you go now to wind down? On the upside (it’s not just the cost of wine), being your own boss at the end of the day takes some beating. The medical system is wonderful – none of us are getting any younger, and it’s great to be able to get specialist advice quickly and easily if you become unwell. Remember that learning the language is not a barrier, it’s a hurdle, so jump it. It opens the door to your new life. Get your priorities right and remember to relax.
Sally and Mervyn Stone, Les Bons Voisins Tel: 0033 (0)2 97 39 32 14 www.lesbonsvoisins.com