What changed in July 2024 in France for personal finances?
Increase in gas prices
Reference gas prices have increased by 11.7% in July 2024 in comparison to June 2024 figures. This is mainly due to an increase in wholesale gas prices and also in the costs of gas transportation costs. You can read more about it here (in French).
Climate change savings account launched for young people
We first mentioned the new investment product, the Plan épargne avenir climat (PEAC), in our January blog, but now its details have been released. To summarise:
- It is available to people under 21 and who are resident in France (or under 25 if still in full-time studies)
- There is no minimum age, so it could be attractive as a savings product for children
- The funds are blocked until the account holder reaches the age of 18
- The funds are blocked for a minimum of five years, with exceptions in the case of death of the account holder or serious disability, and the death of a parent
- Once you withdraw funds, it will no longer be possible to add new funds to your PEAC account
- The accounts are automatically closed at 30 years old
- The maximum investment amount is €22,950 for 2024 (excluding the growth from any gains).
- The gains are entirely tax free, like with a Livret de développement durable et solidaire and an livret-A
- However, unlike a livret-A, your capital is at risk.
- The funds can be invested into investment funds which have the ISR (Investissement Socialement Responsable) or France green finance label, Greenfin
- By default, the risk profile of the investment portfolio reduces as the end of the five-year minimum holding period approaches, but you can choose to refuse this automatic reduction in risk
You can read more about this product here (in French).
Shrinkflation transparency
As of July 2024, supermarkets must label clearly when the quantity of an item has reduced, for example: the weight in grams of a chocolate bar, even if the price has stayed the same. This is known as “shrinkflation”. This should be noted in supermarkets next to the prices for the two months that follow a reduction in quantity. In France, the price per kilogramme or litre of an item is usually indicated, but now changes will be made clearer.
French income tax bills and refunds arrive
French income tax bills and refunds, communicated in a document called the “avis d’impôt sur le revenu” are sent out from the 24th of July to the 29th of August 2024, the exact dates depend upon whether you completed your income tax declaration on paper or online, and whether you have any income tax to pay or not. More detailed can be viewed here.
Feel free to keep in touch with our blog for regular updates on your personal finances in France.
The views expressed in this article are not to be construed as personal advice. Therefore, you should contact a qualified, and ideally, regulated adviser in order to obtain up-to-date personal advice with regard to your own personal circumstances. Consequently, if you do not, then you are acting under your own authority and deemed “execution only”. Additionally, the author does not accept any liability for people acting without personalised advice, who base a decision on views expressed in this generic article. Importantly, this article is dated and is based on legislation as of the date. It should be noted that legislation changes, but articles are rarely updated. Sometimes a new article is written; so, please check for later articles. Additionally, check for changes in legislation on official government websites. Finally, this article should not be relied on in isolation.
