How to prepare your finances for a move to France in 2025

January is the perfect time to plan and make resolutions for your move to France. It’s far too cold and dark to go outside. Your evenings are much better spent readying yourself for a viewing trip and and making an offer on your dream home.

Tidying up your finances may not sound like a cosy evening in, but careful financial planning is essential to ensure a smooth transition. Let us guide you through the steps you can take this month to get your finances in order, from budgeting and understanding local banking systems to leveraging tools like currency exchange specialists.

Review your budget and costs

While moving to France may be your dream, it’s important to set a realistic budget. Begin by calculating the major expenses involved in your move, such as the relocation costs, everyday living expenses and property costs.

When buying a home, you have the familiar costs of deposits and stamp duty to account for, but there are other costs in France, such as notary fees. They can be an additional 5% on top of the value of the home, so make sure to put some money aside.

As well as the flights and removal services that come with finding a home and moving into it, think about the other practicalities. You may need to book temporary accommodation, particularly if you’re moving into a home that needs significant renovations. You may also need to pay for storage while you wait for your home to be made ready.

Are you ready for the everyday expenses of running the house utilities, paying for healthcare and transportation. If you’re moving to a more rural location, for instance, will you be spending more on fuel?

Having a detailed budget in place will help you feel more confident as you move forward.

Familiarise yourself with French banking and taxes

Opening a French bank account is one of the first steps you’ll need to take. Most banks will require documentation such as proof of ID, proof of address, and income details. Be prepared to provide these well in advance of your move.

Equally important is understanding the French tax system, which may differ significantly from what you’re used to. Depending on your situation, you may need to pay income tax, property tax and possibly even wealth tax.

Consulting a financial advisor who specialises in French regulations can be invaluable to ensure compliance and optimise your tax position.

Plan for currency exchange and international payments

Fluctuating exchange rates can have a significant impact on the cost of moving to France. Whether you’re purchasing a property, transferring savings, or setting up regular payments for pensions or mortgages, it’s essential to plan for these fluctuations.

This is where a currency exchange specialist like Smart Currency Exchange can help. Unlike traditional banks, we offer tailored services designed for large and regular international payments. For example, you can lock in a favourable exchange rate with a forward contract, this secures today’s rate for future transactions, protecting you from market volatility.

It can take months for a property purchase to complete and in that time exchange rates can move as much as 5 or even 10%. If your home currency weakens against the euro, you may have to spend thousands more or find you can’t afford to purchase a property. Pulling out of a purchase can be a costly decision.

Working with a currency exchange specialist helps you avoid these risks and make the most of your money.

Organise your key documents and legal paperwork

There are a few key documents you will need to provide to multiple parties as you buy a property. Your own mortgage lender, solicitor, the notary and the seller’s solicitors may all ask for this paperwork. You will save yourself time and stress if you get it organised now, before you start your search.

Create a folder to store your proof of income and savings, tax records and financial statements and all the documents required for visa applications or property purchases.

Having these documents ready will help you navigate French bureaucracy more smoothly, whether you’re opening a bank account or buying a home. Enlisting the help of legal experts who understand the French system can save time and prevent costly mistakes.

Take charge of your financial future

January is a time for fresh starts and careful planning. By taking steps now to review your budget, understand local financial systems, and build a network of trusted experts, you’ll set yourself up for a successful move to France. Whether you’re retiring to the countryside or relocating for work in a bustling city, proactive financial preparation is the key to making your dream a reality.

For tailored advice on managing currency exchange and international payments, reach out to Smart Currency Exchange for a free consultation. With the right tools and guidance, your move to France can be as seamless and rewarding as you’ve envisioned.