A banking tip for new residents of France

Whether moving as a citizen of the United States or from any other country to reside in France, one of the first steps is to establish a French bank account. It’s very likely that in certain contexts—such as in obtaining a property lease—having a French bank account is a non-negotiable requirement. Some might anticipate this and open an account with a French international bank (such as BNP Paribas) before making their move to ease their entry to France, others will do so soon after arrival (and U.S. persons will learn about FATCA in the process, if they haven’t before). It’s likely your account will be called a compte courant, or “current account,” which is intended for support of everyday financial transactions.But there are a couple things to be aware of as you get settled in and become tax resident in France.Taking up residenceAt the time you open an account with a French bank, you might not yet be verifiably fiscally resident (also referred to as being tax resident) in the country. That is, you will not yet have met the conditions necessary for being fiscally resident, which are:* Your home is in France (where “home” would also potentially include a spouse, a recognised civil partner, and children)* Your main place of stay is France (i.e., you stay in France or its overseas territories for at least 183 days of the year)* You work in France (it is the place where your employment provides the bulk of your income)* The centre of your economic interests is France (it is where your major investments have been made, or it is the place from which you manage your principal activities)But once you have evidence of fiscal residency, based on the above, you might find yourself in the position of being able to get a better deal on your compte courant at the bank, and other banking services might become available to you.To formally recognise that you’re fiscally resident in France, however, a bank is likely to require concrete evidence, for example, a signed and dated lease agreement (un bail) or a justificatif de domicile (proof of address) obtained from your power utility. In addition, a bank might also look for evidence of your having submitted a tax declaration to the French tax authority, the Direction générale des Finances publiques (DGFiP) and of having obtained a tax ID before accepting that you are fiscally resident.Here’s the banking tipOnce you have sufficient evidence of fiscally residency, and certainly after you’ve received your tax statement and numéro fiscal, make an appointment with your bank counsellor to review the terms of your current account. Bring with you the French tax statement (avis d’impôt) and tax number, your passport(s), your justificatif de domicile, and documentary proofs of income.The tax statement gives incontrovertible evidence that you are a bona fide tax resident of France, with intentions of remaining in the country, and would generally be the document that banks prefer. Once submitted, the bank should update your status in its records accordingly. Your status as fiscally resident implies that you represent a lesser risk to the bank and, depending on your bank, some tangible banking advantages might arise as a result:* Lower maintenance charges on current accounts;* A wider range of banking options: savings or investment accounts might become available, for example;* Enhanced access to credit: an option for a debit card (carte bancaire) with a higher monthly limit, or for a credit card (carte bleue);* Access to insurance products that are off-limits to those not fiscally resident in the country, including the popular life insurance (assurance vie) policies that enable growth-oriented investment and certain tax advantages, especially with regard to inheritance tax.Benefits available will vary depending on the individual bank, but once you’re settled and have sufficient proof that you are fiscally resident in France, it’s probably worth your while to go back to your bank to determine how your updated status might translate to enhanced benefits. It might save you money, give you more banking options, and make your life easier. Get full access to Seeking Tranquillity in France at leavingamerica.substack.com/subscribe