Last Updated on 8th April 2026
ISAs are a familiar and tax-efficient way to save or invest in the UK, but retaining an ISA following an international relocation is one of the most common mistakes expats make because their tax-deferred status doesn’t apply, and accounts and earnings are taxed as any other.
It’s essential that foreign nationals planning a new life in France also understand how ISAs will affect their tax thresholds once they become tax residents, or will be treated as investment returns, which can mean their overall tax burden becomes much higher than anticipated.
In addition to tax exposure, non-UK residents aren’t permitted to make any further contributions, which means keeping an ISA isn’t often advisable. We’ve looked at some solutions to give you an idea of ways forward that may be suitable for your circumstances.
When Could it Be Advisable to Retain a UK ISA as an Expat in France?
There are always considerations and caveats when organising your finances across borders, but there are generally only a few scenarios when a finance professional might suggest that keeping an ISA is appropriate:
- If you are due to be in France for a short period of time, as a non-tax resident, and aren’t planning a long-term move.
- If you own assets in France, such as a holiday home, but won’t meet the criteria for tax residency, and you have verified this with an adviser.
Otherwise, holding onto an ISA will usually mean unnecessarily high taxes without any of the benefits associated with this type of savings account in the UK.
What Is the Best Way to Reinvest an ISA Before Relocating?
Deciding what to do with your ISA before your move is key, because even if you plan to close your account, you could still be subject to French taxation if you become a tax resident, even inadvertently, before you get round to doing so.
In terms of options, these will depend on your circumstances, but several alternatives offer ongoing tax efficiencies.
French Assurance Vie
An Assurance Vie is a tax-efficient product typically used within a retirement portfolio, as it works similarly to a life insurance product but offers tax benefits comparable to those available through UK ISAs. These include:
- Greater tax efficiency after eight years, with annual tax-free allowances on gains that rise to €4,600 for individuals and €9,200 a year for couples.
- Lower tax rates of 7.5% plus social charges after the same eight years on withdrawals over the tax-free allowance, up to a threshold of €150,000 in invested capital.
- Tax-free growth, where gains are not exposed to capital gains or income tax, provided they are not withdrawn.
- Improved flexibility when compared to pensions, as holders can make withdrawals as they wish.
Expats can transfer their ISA investments to an Assurance Vie and enable their investments to grow with no annual tax burden. Only the gain is taxable, and then only when the holder makes a withdrawal.
Spreading withdrawals between tax periods can further improve the tax efficiency of an Assurance Vie by enabling strategic planning to avoid overall income being subject to higher-rate tax bands, and there are also benefits for estate and succession planning.
Other Tax-Friendly Long-Term French Saving Options
Additional products that could be beneficial for tax-efficient savings in France include:
- The Plan d’Épargne en Actions (PEA), which translates to a French Stock Savings Plan, and enables residents to invest in French or EU shares. These products offer tax exemption, although social charges remain payable, if there are no withdrawals made for five years. Deposits are capped at €150,000 for most products, though some specialised PEAs have a limit of €225,000.
- The Plan d’Épargne Retraite (PER) is the most-used retirement savings scheme in the country, often used to consolidate older products. These accounts cannot be accessed until retirement, except in specific circumstances, but contributions can be deducted directly from taxable income for those employed in France.
There are other advantages to using long-term savings products, such as extended tax relief for beneficiaries of PER funds if the holder dies before the age of 70, at €152,500 per inheritor, or €30,500 thereafter.
Tax-Efficient Short-Term or Liquid French Savings Accounts
Multiple savings products in France offer tax exemptions and advantages, if you want a short-term, easily accessible way to reinvest your ISA. Examples include the following.
Livret A
These accounts are among the most popular. Although interest rates fell to 1.5% in February 2026, tax residents can contribute up to €22,950 per year, with interest calculated twice per month and credited to the account annually. These accounts are tax-free and free of social security contributions and can be accessed at any time.
Livret de Développement Durable et Solidaire (LDDS)
LDDS have tax benefits similar to the Livret A, typically with a matching interest rate, but with an annual contribution cap of €12,000. French residents can hold both a Livret A and an LDDS, as the thresholds are separate.
Livret d’Épargne Populaire (LEP)
Normally suitable for taxpayers with lower or moderate income levels, the LEP offers a higher savings rate, currently 2.5%, and is also tax-free and state-regulated. It is available to residents with an income below a threshold, based on €23,052 per person for 2026, and can hold up to €10,000 in cash, excluding accrued interest. However, it may be appropriate for some residents or young adult children with ISA funds.
Livret Jeune
Another alternative for young adults, the Livret Jeune is intended for French residents aged 12 to 25 and can provide a tax-free way to earn interest on ISAs held for children, teenagers, and young adults, with interest typically equal to or higher than the Livret A rate
Factors to Keep in Mind When Reinvesting an ISA in France
All of the above suggestions may be applicable. However, it’s important to think about how you time withdrawals from an ISA, ideally before becoming a tax resident, how you diversify your funds and investments within your portfolio, and how this influences your tax position.
For more information and personalised guidance on restructuring savings and investments as part of a move to France, you are welcome to contact the Chase Buchanan Private Wealth Management Bordeaux team or UK-based Administration Centre, and we’ll put you in touch with one of our experienced wealth managers.
© Chase Buchanan Private Wealth Management.
Chase Buchanan Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission with CIF Licence 287/15 and offers its services in the EU on a cross-border basis as per the provisions of MiFID.
Chase Buchanan Insurance Services, Agents & Advisors is authorised and regulated by the Cyprus Insurance Companies Control Service with License No 6883 and offers services in the EU on a cross-border basis as per the provisions of the Insurance Distribution Directive (IDD).
Investing in financial instruments involves risk and may not be suitable for all investors. The value of investments may go up as well as down and past performance is not a reliable indicator of future results. You may lose part or all of your invested capital.
*Information correct as at April 2026
