Invest In France- FAQs
France’s exports to China have seen a yearly increase of 2.66% over the past five years, going from $21.1 billion in 2017 to $25.4 billion in 2022.
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Are you looking for a top overseas investment market? Look no further. France is the sixth largest economy globally and it holds about five hundred of the world’s multinational offices.
The flagship industries in which France pioneers include cosmetics, insurance, airline, fashion, luxury, and energy companies.
Investing in France offers myriads of opportunities such as exchange-trade funds, American Depository Receipts, and real estate.
Lief Simon is the managing editor of Global Property Advisor, Simon Letter, and Offshore Living Letter. He has purchased more than 45 properties, investing in 23 different countries around the world.
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France investment scopes almost all the sectors due to the well-developed economy. However, we will narrow down to the lucrative sectors for foreign investment in the region.
Areas such as automotive, biotechnology, nuclear industry, software, multimedia, and computer logistics and peripherals are easy to venture into and promises huge returns for the investors.
It goes without mentioning that France is the lead producer of electricity in the market as far as nuclear energy goes.
Up to 79% of the energy flow in the region comes from nuclear power. Therefore, when putting clean energy into perspective France is already ahead in the right direction providing a hotspot for energy investment for foreigners.
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Foreigners are allowed to invest in property of all types in this region. The good side to it is that the tax which applies to the French citizens also applies similarly to the foreign investors.
The only difference involves money transfer from the US to France where banks and money transfer agencies provide a certificate to the notary for any acquisition or purchase. The investor is then eligible for the full tax benefits.
The house prices are generally higher than in most regions.
Most of the property are freehold, where investors can hold apartments in two ways. The first instance is the co-ownership which involves mixed use developments.
Usually, the regular meetings for co-owners, vote taking and accounts keeping takes place in co-ownership. The second option is leaseholds, where investors can lease property for up to 99 years.
However, we’d also like to inform you that the rental contracts in France are mostly long term attracting legal restrictions that may hinder strong returns.
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The simplest avenue pursued by lead foreign investors is the ETFs or the Exchange Trade Funds. They provide the investors with a diversified way to expand their portfolios. They involve acquiring packets of securities in several industries in a less risky fashion than the individual stocks alternative which has fewer beta coefficients.
ETFs are different from the mutual funds in the sense that they can be exchanged for money throughout the day just like the stock.
We would advise our client investors to try out the MSCI France Index Fund which is the integral ETF commonly used.
This form of ETF imitates the French securities from the publicly traded entities. Its aspect of being diversified comes from the fact that no sector accounts for above 20% of the entire holdings. It has a beta coefficient equivalent to 1.1 as well as aggregate price earnings ratio of 16.2 x based on the last year’s statistics.
Another way to go is the American Depository Receipts. This strategy provides foreign investors with a window into the French companies as well as an opportunity to invest directly in the Euronext Paris.
Our research on the ADRs pointed out that such trades on the OTC market pink sheets offer less liquidity than companies traded on NASDAQ and NYSE.
A quick heads up to our clients reading this page is that before making a France Investment, they should take into account the risks involved. That is with regards particularly to the ties France has with the EU trading bloc which has socialist policies differing from those of US and Britain.
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Besides how to invest in France, we will also provide information on the foreign direct investment in France.
In 2007 France made significant reforms in the tax system, labor and corporate laws which are important pillars of the entire business environment. The outcome of that was a more flexible labor system giving companies immense freedom.
The French government has also implemented tax reduction policies on productive investments which took effect from 2010.
The corporate law has also been simplified promoting good business innovations. That has been complimented by an in-depth research to modify the system of patent filing for better tax credits.
Invest in France and experience these favorable policies towards foreign investment. Today France is the largest recipient of the FDI concerning logistics.
The country’s infrastructure is exceptional based on the integrated road network as well as the high-speed rail work that is 2nd fastest in the whole of Europe. Still, on infrastructure, France houses the 2nd busiest airport in Europe for both cargo and passengers.
Globally, the country ranks number six in labor productivity per hour. Besides that, it recorded 44% of the middle age population (30-34) being higher-education graduates in 2013.
When we compared the operating costs in France and that in US, Germany, and Japan, France came out on top.
An office rent in Paris is far much cheaper than in London.
We are glad to emphasize that establishing a company in France is 1% cheaper regarding average per capita income as compared to the 9% of the G20 countries. Business is nothing without reliable communication.
France pioneers in e-administration in Europe and ranks fourth globally in online government offered services, communication infrastructure and the size of the elite population.
Bottom line, France can be regarded as a hotbed for foreign investment. As with any ventures in mind, make sure to find out the risks and due processes associated with investing in France before committing capital abroad.
France is known to be a rather bureaucratic country, and setting up investments can get tricky without the proper knowledge.
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Lief Simon is the managing editor of Global Property Advisor, Simon Letter, and Offshore Living Letter. He has purchased more than 45 properties, investing in 23 different countries around the world.
We Value Your Privacy! We will not share your email address with anyone else, period.
France’s exports to China have seen a yearly increase of 2.66% over the past five years, going from $21.1 billion in 2017 to $25.4 billion in 2022.
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