Banking, Money and Taxes in France

Banking, money and taxes in France offer a well-managed, sophisticated financial ecosystem that’s more accessible to foreigners than ever before. The main hurdle you might face is the language barrier, although English-speaking services have grown, especially in digital banking and popular expat areas.

Money in France

Money in France follows the standard European currency system. As with all EU member states, the official currency in France is the euro (€ or EUR), divided into 100 cents.

• Notes: EUR 5, EUR 10, EUR 20, EUR 50, EUR 100, EUR 200 and EUR 500
• Coins: EUR 1 and EUR 2, and 1, 2, 5, 10, 20, and 50 cents

EUR 500 notes are no longer issued, but some are in circulation. In France, full stops (.) are used as thousand separators, and decimal places are denoted with a comma (,). For example, five million would be written as 5.000.000, while 20 euros and ten cents would be written as EUR 20,10.

Contactless and mobile payments have boomed in France, with digital wallets like Apple Pay and Google Pay accepted almost everywhere alongside traditional cards. Even small vendors at local markets now offer tap-to-pay options.

Banking in France

Banking in France gives you access to both established traditional banks and modern digital alternatives. All banks maintain high service standards with features like multi-language mobile apps, instant transfers, and contactless payments. English-speaking staff are common, and expat-heavy areas like the French Riviera have banks with dedicated English services.

Your choice between local and international banks depends on your specific needs. French digital banking has surged, and over 85 percent of online banking customers use mobile apps.

Local French banks pay no interest but charge a small monthly account fee. While living in France, you can open either a resident or non-resident account.

Non-resident accounts are suitable if you’re staying less than three months or if you can’t provide employment proof or a residence permit. These accounts have more restrictions than resident accounts, lack overdraft facilities, and require larger initial deposits. Not all branches handle non-resident accounts, so you’ll need to find an international branch for this service.

France offers three main types of bank accounts:

• Private current accounts function as standard checking accounts where you can receive payments, make deposits and authorise withdrawals. These don’t pay interest.
• Deposit accounts serve as savings vehicles for money not needed immediately.
• Joint accounts work well for couples or those who prefer managing finances together.

Banking hours in cities run from 8.30am or 9am until 4pm to 5.30pm, Monday to Friday, with rural branches often keeping shorter hours.

France offers straightforward ways to handle recurring bills through automated transfers. You simply need the RIB (Relevé d’Identité Bancaire) of the party you’re paying, which includes their account details. For regular automatic payments, you can set up a one-time authorisation for a TIP (Titre Interbancaire de Paiement). The SEPA system now processes most transfers within one business day.

Opening a bank account in France

Opening a bank account in France is simple, although requirements vary by bank and account type. Digital-only banks have made the process easier for many expats with remote account opening options and fewer document requirements.

For a non-resident bank account in France, you’ll need:

• Proof of identity via passport or birth certificate
• Proof of residence, usually shown with a utility bill
• An initial deposit, which can range widely for non-resident accounts, from a modest sum to several thousand euros

Opening a resident bank account in France typically requires:

• Proof of identity through your passport or EU identification card
• Proof of earnings or status through a work contract, income verification, or student card. Retirees may need to show they can support themselves in France.
• Resident status or carte de sejour
• Tax notice (increasingly requested for foreign nationals)

Brexit has affected UK citizens, who now face additional scrutiny when opening French accounts. US citizens may also encounter extra documentation demands due to FATCA regulations.

ATMs and credit cards

Chequebooks and debit cards come standard with most French bank accounts and are widely accepted throughout the country. Post-dated cheques remain technically illegal, and bouncing a cheque is treated as potential fraud in France.

Most international debit and credit cards work seamlessly in France. ATMs are plentiful even in smaller towns. French banks and post office ATMs don’t charge withdrawal fees themselves, although your home bank may impose foreign transaction fees of 1 to 3 percent.

You can also exchange cash at bank branches, bureaux de change, and post offices, with the latter often offering surprisingly good rates.

Digital payment methods have taken off. Six-tenths of French consumers now use Apple Pay for in-shop purchases. Digital wallets work in most French businesses, from large retailers to local market stalls. Visa and Mastercard enjoy near-universal acceptance, and American Express works mainly in tourist areas and upscale establishments.

To minimise foreign transaction fees, consider using cards that waive these charges, limit ATM withdrawals, avoid currency conversion at the point of sale, and look into multi-currency accounts from digital banks.

Taxes in France

Taxes in France feature systematic deductions for both income tax and social security. The tax system applies to anyone working, living, or investing in the country.

Roughly 20 to 23 percent of your gross income will go toward social security contributions. Using a tiered progressive system, income tax ranges from 0 to 45 percent of your net income. These brackets adjust annually for inflation, while the rates remain stable.

Property owners face additional taxes and must now declare occupancy status. The system is moving toward replacing the current property tax with a single land tax. Self-employed individuals face extra taxes, though France offers supportive resources for entrepreneurs.

Remember that income tax declarations remain separate from social security contributions. Brexit has brought changes for UK citizens, who must now apply for residency permits and navigate some new tax obligations.

All EU member states pay VAT on goods taken out of the region when you leave the EU. For VAT refunds, bring your passport when shopping, obtain necessary documents from retailers, and get your forms stamped by customs when departing. Short-term residents staying just a few years should consult a VAT expert about potential refund claims, which can often result in substantial savings.