Moving to Toulouse for 2 years

[mryogi]

Hi

I have been offered a contract by my current employer for a two year assignment in Toulouse. I am currently based in India and i will need to start in 5 months.

1. I am trying to determine how much french income tax I will have to pay?
As per the contract i am expected to earn Euro 39000 annually (3000 per month). I am married and my Spouse will also be accompany me to Toulouse. During this period i will not have any other form of income, investments, etc.

2. I came to know that Toulouse has good Metro system and many bus routes. I expect to rely on the same for most of my travelling needs. Any suggestions?

3. How much would it cost for renting out a one bedroom apartment in Toulouse. What all utilities comes with the rent?

4. How is the living cost in toulouse?

Any help is greatly appreciated.

Thanks

[Bevdeforges]

Hi and welcome to the forum. (And welcome in advance to France.)

To try and answer some of your questions:

1. You will be subject to French income tax and "cotisations" (which are the deductions from your salary each month for social insurances - health, retirement, etc.). It's hard to say exactly how much tax you'll pay because there are lots of factors to take into account, like personal exemptions and the total amount of social insurance you pay (which is deductible for income tax purposes). Figure on about 20 - 22% of your salary being withheld for cotisations (which may include a mutuelle "top-up" insurance that covers the part of health care costs the national health system doesn't pay for).

There are some tax estimators online, but they are all in French. Most explanations of French taxes in English omit the actual rate tables, as these tend to change annually (and last minute changes for the year, voted in November or December are not at all infrequent).

One thing to know is that income tax is not withheld from your paycheck, so the first year you have to remember to hold aside some money for your taxes, which will be assessed and payable the following year in September. The other thing is that taxes are done on a calendar year basis, so the first year, assuming you arrive in September (i.e. 5 months from now), you'll only be paying tax on the last four months of the year - which reduces your tax bill for that first stub period.

2. Lots of people rely on the transit system in Toulouse. If you live reasonably close to the bus or other lines, you should be just fine. Remember, too, that your employer subsidizes half (I think it is) of your monthly transit pass if you use public transport to commute to work.

3. You may want to ask your employer for help in finding a flat in Toulouse. The terms of rentals are a little bit complicated. Generally, renters pay for most of the utilities or, in older buildings, are charged back separately for "charges" on top of the quoted rent amount. You will also wind up paying the taxe d'habitation, which is a kind of property tax, assessed once a year.

4. You may want to try and find a cost of living calculator on the Internet. COL figures usually depend on where you are coming from. I think of Toulouse as being reasonably inexpensive, but that's in comparison to the Paris region, where I'm located, which may not be a reasonable benchmark.

That's a start anyhow. Keep in touch to let us know how your move is coming.
Cheers,
Bev

[mryogi]

Thanks Bev for the prompt response and for the details. I am trying to get more clarification from my employer.

Thanks Once again.