Hi All,

Just registered on this forum, although I have browed it for some time. Myself and my wife are thinking of taking early retirement and moving to a small town south of Carcassonne later this year.

We have a town house there and the village has good transport connections and commerces as we do not drive a car. We purchased our house there 7 years ago and will have no mortgage.

I am trying to find out how much we would need to live a fairly simple lifestyle excluding cigarettes and alcohol say just taxes, insurance, food and heating/water bills an dother basics. Would 1,000 EUro per month cover this ?

Going by David Hampshires numbers from 2006 this would just about do it, but are the numbers valid at all ?

Many thanks

Hi and welcome to the forums!

I take it you're coming from the UK, so you don't have any visa worries. As far as the basics are concerned, there is something in France called the RMI which is considered a basic standard of living figure - if you make less that the RMI you are generally entitled to public assistance. For two people with no children, the RMI is currently at about 670€ a month, so you're definitely above what the French consider minimally adequate. You're a bit below the current minimum wage for a full time job (which is 1280€ a month) - though that is subject to about 20% being withheld for social insurances.

Given that your house is paid for, you should be in reasonable shape and you probably already know what you're paying in taxes foncières and taxes d'habitation (the two main property taxes).

Income taxes will depend on the source of your income - whether you're drawing a pension from the UK or living off your savings or investments. Be aware that there is a wealth tax here if your net worth (figured worldwide) exceeds about 750,000€ - and it sneaks up on people as the value of their home increases.

One consideration, however, is your health insurance. I'm not sure where you fall in the French sécu system, but chances are you may have to provide your own health coverage, given that you're not drawing French retirement.

If you've been visiting your house in the south on a regular basis, you should have some idea about the general cost of living in the area, as well as for the utility costs for your home.

David Hampshire's figures are usually valid, but they're based on overall averages, which are very general. You're in a good position to whip up a proposed budget for yourself which should tell you more about your situation than any book can.
Cheers,
Bev

Thanks very much for that Bev !

I was aware of the minimum wage figure, but the RMI is new to me.

I am a Brit, but my wife is a US Citizen, so shew will have to get a long-stay visa first I guess. We will sell up here and I will be living off a mixture of savings and a little capital - nowhere near 750k unfortunately !

My taxes are aprrox 900 Euro combined for the year. I have just had a wood burner installed so the trade off between logs and electricity has yet to be determined !

BTW my latest advice from a firm specialising in tax and financial planning for people moving abroad is that th e E106 is still valid for 2 years, and that after 5 years you qualify for the french system for health insurance. So only 3 years to fund. I must admit that I have not found anything concrete to back up that assertion, but they were quite adamant.

Thank Again !

Conky

I think your wife will have some advantage in the visa game as the "conjoint" of a "resortissant européen" (not sure of the spelling on that). Contact the French consulate in London for details - or if your French is up to it, check out the French government's "Service Public" website here: SERVICE PUBLIC - Particuliers

Though I'm fond of complaining about the administration here, the Service Public website is a great source of information, especially for us "foreigners" who don't entirely understand the system.

I was trying to find something about your eligibility for health care on the site - without luck, though. What you've been told sounds right to me - it is roughly the same thing some of my Brit friends here said. Once you're in the national health system, though, you'll probably still want to have a "mutuelle" (top-up) policy to pay the bulk of what the national system doesn't pay - at least until you get old enough (or sick enough) to get 100% coverage under the state system.

Sounds like you'll be heading to the south of France! Keep us posted on your progress.
Cheers,
Bev