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Living abroad: the key steps for managing your finances

Living an international lifestyle creates a whole world of new opportunities. Enhanced career prospects or better pay and benefits are among the main reasons for moving abroad.

Living abroad: the key steps for managing your finances
Photo: Getty

But new opportunities don’t come without challenges. Embracing your freedom to live abroad or across borders could make it harder to plan a path towards financial freedom.

While your language skills and cultural norms may inevitably become caught between places, personal finance is one area you can keep control of. The Local, in partnership with Barclays International Banking, presents the key steps to building a more secure future – no matter where you call home.

Start planning your future today: find out if you qualify for Barclays International Banking 

Digital banking: track your day-to-day outgoings

From same-day deliveries to social media, we live in an age of instant gratification. But when it comes to money, it makes sense to plan for the future.

You can start by ensuring you have a complete view of your finances right now. That may be easier said than done, however, if you use multiple accounts and cards issued in different countries.

Doing all your digital banking in one place could help you better understand your outgoings. If the cost of living in your new location is high, you want to avoid the trap of splurging all your income. If it’s lower than you’re used to, you could make that count by setting some of your salary aside in a savings or investment account.

Currency exchange: be flexible, move fast

You don’t have to be a forex trader to win or lose big on currency fluctuations. If you’re planning a life abroad, the question of how and when to transfer money deserves some serious thought.

This is especially true if transferring large sums because, for instance, you want to buy a property or perhaps close a savings account. Even with smaller transfers, you can make the money work for you by thinking ahead and being flexible about when you trade.

You may want to set an alert for your target exchange rate in a foreign exchange app so you don't miss a favourable market movement. Knowing exactly how you’ll make a transfer is also crucial. Barclays International Banking's foreign exchange service allows you to trade in multiple currencies – with rates that get better, the more you convert.

Savings & Investments: select your strategy

Living internationally requires you to grow as a person. But what if negotiating culture shock and red tape deprives you of the mental energy needed to grow your savings?

Try not to get overwhelmed by having money in more than one country. Think about what matters to you and select a strategy to match your goals. 

Start simple: for instance, save a fixed percentage of your income each month – and use automated transfers so it’s done before you can spend it!

If you’re investing, consider the risk-reward ratio and pick a strategy. Maximising long-term growth to fund an early retirement is very different from seeking safe, regular returns to support you and your family as you set up a new business.  

Find out today how Barclays International Banking can support your international lifestyle

Property & Family: trust matters 

Few decisions shape your life more than buying a home. If you’re discussing your future with a partner, you need to plan ahead wherever possible. Your dream home won’t come cheap. Nor will any kids!

Photo: Getty

In many countries, you still have the chance of securing a mortgage with a fixed, long-term low interest rate. But if you’re new to a place, take time to understand the local conditions – asking a few locals what they consider to be a good deal might offer valuable insights.

If your thoughts are turning to your legacy, you may want to take professional advice on estate planning and local inheritance laws. Trust is key when it comes to the more personal aspects of personal finance.

Tax & Pensions: pay attention not penalties

As an international resident, you’ve almost certainly attracted the attention of more than one tax authority. So, make sure you know exactly where you’re liable to pay tax.

If you’re an employee abroad, the hard work may be done for you with tax deducted from your salary each month. But if you’re self-employed, plan for the tax bills to come – and how they’ll differ from what you’d pay in your home country. 

Some workers, such as cross-border commuters or those on temporary postings, could be at risk of double taxation. Check any rules you’re not sure of with the relevant tax authority to avoid waking up at 3am in a cold sweat. 

You may also want to check the legal retirement age in your adopted country. Want to consolidate your pension? Look into official transfer schemes, such as the qualifying recognised overseas pension scheme (QROPS) for people who want to move UK savings abroad.

Barclays has been managing clients’ money for more than 330 years and has regional expertise across the globe. Click here to find out how Barclays International Banking can help you move towards all your financial goals, wherever life takes you.

 

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FAMILY

How to register a death and arrange a funeral in France

There’s a third certainty in life in France, after death and taxes - and that’s bureaucracy. 

Graves at a cemetery in Paris
There are strict rules around burial or cremation n France. Photo: Martin Bureau / AFP

No one wants to think about death while they’re enjoying the good life in France, but it’s important to understand what needs to be done – and when – in the event of a loved one dying in France.

Let’s start with what you can do before you die.

Burial or cremation

It’s a good idea to make it known whether you want a burial or cremation in France, or if you want your body repatriated for a service back home, so that anyone dealing with the formalities is aware of your wishes.

If you do want to be buried in France, it’s a good idea to reserve a plot, as it will make things a lot easier at a difficult time. Just keep the document that confirms you have done so in a safe place.

Funeral insurance

Funerals can cost anywhere between €3,000 and €5,000, so it can be a good option for older people to take out a funeral plan – they’re routinely offered by banks, insurers or funeral firms. It means funeral funding and organisation is automatically in place, and any family members flying into France, whose French may not be very strong, don’t have that issue to face. 

After a person dies, numerous administrative tasks are necessary in a short period of time.

The first 24 hours

If you’re with a family member, friend or relative when they die, you have 24 hours to report the death. 

If they die at home, contact their GP, or call 112 or 15. A doctor will come round and certify death and issue a medical certificate (certificat de décès / declaration de décès). If the person dies in a hospital, retirement home or other facility, it is their responsibility to report the death.

If the doctor believes the death was suspicious or by suicide, an inquiry is held. This is also standard if the death occurred in a public place. The responsibility for issuing the certificat de décès and burial permission in such cases falls to the public prosecutor (Procureur de la République) in the local high court (Tribunal de Grande Instance).

Registering the death

A relative, representative or undertaker then has to register the death at the local mairie (town hall) within 24 hours, unless the death takes place on a public holiday or at a weekend, when the admin offices at town halls are closed. 

Those who report the death need to take proof of their own ID, as well as proof of the deceased person’s identity (a carte nationale d’identité, carte de séjour, passport, marriage certificate or birth certificate) and the recently issued medical death certificate.

This should be enough for officials to issue a death certificate (acte de décès) – which includes information on where and when the death took place, not the cause of death. 

You can ask for several copies – they’re free and it’s a good idea to do so. These documents are needed to close the deceased’s bank or utility accounts. But, if you later find out you don’t have enough, don’t worry. More copies can be obtained online, in person or by post.

Organ donation

It may seem a bit crass to slip this point in here, but in general every adult in France is presumed to be an organ donor, unless they specifically opt out. 

This has been the case since the Loi Caillavet was passed in 1976, making everyone an organ donor except for those who have explicitly refused, as well as minors and those under someone else’s guardianship.

The rule, however, is different for foreign nationals who die in France. In such cases, the law of their home country takes priority.

In practice, doctors will consult with family members before harvesting any organs. Refusal must be in writing, and must confirm that the deceased had expressed their opposition to organ donation. 

Arranging the funeral

Once the death is registered, the mairie issues a burial permit (permis d’inhumer).

The deceased’s family usually have six days to arrange the service for a burial or a cremation, with allowances if there’s an open investigation or if the death happened on a weekend or public holiday, or if the person died abroad and wishes to be repatriated to France – in which case the time limit is six days of the arrival of the body in France.

Burial can’t take place within the first 24 hours after death.

If the deceased had indicated what type of ceremony they wanted, their wishes must be respected. If they didn’t specify, the decision has to be made by their closest relatives.

The funeral directors will help with these formalities. The mairie will have a list of local firms, and the website www.pompesfunebresdefrance.com has details of funeral directors in towns and cities across the country.

Burial

Burial in a cemetery requires a surviving spouse, parent or child to ask permission from the mairie. This is a formality and will usually be granted – though there are exceptions.

The deceased can be buried in the commune where they lived, where they died or where they have a family tomb.

Families may request to have them buried in another city, town or village (for example, if that’s where other family members) but the mairie may decline the request.

If the deceased had not already reserved a burial plot (une concession) you need to buy one. This is done at the mairie or at the bureau des cimetières. Costs vary depending on timespan which ranges from five – 15 years, to perpetuity and can usually be paid in installments. Arrangements may be made if the family lacks the means to pay.

Enquiries about burial must be made as soon as possible to organise a time and date for a funeral. If a burial plot had been previously reserved, you should find a document called a titre de concession confirming this.

Normally cemeteries require flat paving to be placed over the grave before the family can install a headstone.

Cremation

As with burials, permission for a cremation has to be obtained from the town hall of the commune where the death took place, as cremations usually take place at the crematorium nearest the place of death.

A medical certificate showing there are no medical or legal reasons preventing cremation is required. Medical implants such as pacemakers must be removed by a doctor or embalmer.

Following any short service, ashes are handed to a family member privately shortly after the funeral, or may be stored temporarily while the family considers what they plan to do with them. 

But there are strict rules on where ashes may be scattered. You can’t just throw them anywhere –  for example, scattering them on private land is banned. Communes will usually have a remembrance garden used for this purpose, but – again – surviving family members may be required to ask permission from the mairie to use it. 

Who pays?

Funeral expenses in France are covered by the estate of the deceased, usually their bank account. If the money in their accounts isn’t enough to cover the overall fee, heirs or family members must pay the difference.

The person taking charge of the funeral may, upon presentation of the funeral invoice, obtain the debit from the bank account of the deceased, which is to say, the required amount for the payment of funeral expenses, with a limit of €5,000. Beyond this amount, a notary needs to get involved.

If the deceased had funeral insurance, contact the insurer as soon as possible after death.

Seven days and after

Within seven days of the person’s death, you should notify their employer if they were working, health and life insurance companies, bank (do mention if you shared a joint account), and their landlord, if they were renting.

Within 30 days, notify France’s primary health insurance fund CPAM and return the deceased’s carte vitale health card.

Within six months, make sure you have informed the tax office with reference to income tax declarations and other relevant fiscal information. The process can be done online in the first two months after the person’s death.

Inheritance

A notary must be contacted promptly, in order to open the inheritance file. There is a six-month time limit for the filing of the succession declaration and the payment of an inheritance tax, if the death took place in France, twelve months in other cases. This is usually sufficient for an estate to be settled.

Notaires de France has a comprehensive English-language inheritance guide on its website.

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