Financial Advice for Expats in France

The proximity of France to the UK often means expatriates assume that the tax and financial regulations across the Channel will be similar. However, France has a complex tax structure, distinct legal systems governing succession, and potentially high effective tax rates. This makes strategic planning vital. 

Our advisers provide comprehensive financial guidance to help you manage your assets, minimise exposure to double taxation, protect your estate, and ensure compliance with both UK and French legislation.

If you become a French tax resident, you will typically be liable for tax on your worldwide income and assets. You’ll usually be deemed a tax resident if you spend 183+ days in France, have a permanent home there, or base your economic interests in the country. 

As a tax resident, you will need to budget for taxes as follows:

• Income Tax: Progressive tax rates apply up to 45%, with additional surcharges for high-income earners
• Social Charges: Apply on some forms of income with a standard flat rate of 17.2% 
• Property Wealth Tax (IFI): Annual charges apply on real estate assets above €800,000 and worldwide property portfolios above the same threshold for tax residents
• Inheritance Tax: Tax exposure depends on the relationship between the deceased and the beneficiary, and can extend up to rates of 60% for unrelated heirs after allowances

Non-residents are generally subject to flat-rate withholding taxes on their French-source income. Our local advisers will ensure your tax planning is efficient, compliant, and mitigates avoidable liabilities.

All French tax residents and non-residents with taxable French income are required to file annual returns, which are due between May and June each year. We can provide full filing and advisory support with the following tasks:

• Income Reporting: Including employment, pension, savings, and rental income
• Wealth Disclosure: Meeting filing requirements for global real estate and other assets
• Tax Credit Applications: Claiming reliefs and credits for tax paid overseas
• Treaty Relief: Preventing dual taxation under the UK–France treaty

Our advisers can step in to manage the filing process on your behalf or offer guidance about the tax efficiencies and allowances available, ensuring timely compliance and clarity around your financial obligations.

British expats relocating to France should carefully evaluate their retirement strategy, as pension transfer decisions depend on several variables. Inefficient transfer transactions or withdrawals can incur unnecessary and sometimes substantial tax burdens that are easily avoidable. Our advisers can guide you through:

• Comparisons of Different Pension Structures: Analysing ROPS, SIPPs, International SIPPs, and annuities to ensure you make informed decisions about the best options for you
• Tax Efficiency Guidance: Assessing the benefits of drawing pension income in France, retaining UK-based pension funds and the entitlements covered by tax treaties
• Currency Risks and Funds With Simplified Access: Managing exchange rate exposure and access to your retirement wealth in France
• Lifetime and Succession Planning: Aligning your pension income with retirement goals, tax allowances, and inheritance wishes

As your retirement wealth advisers, we are on hand to structure your pension income for long-term sustainability, tax efficiency, and peace of mind.

French inheritance tax, or droits de succession, is based on the value of assets within an estate, and the heir’s relationship to the deceased. Some of the many considerations include:

• Allowances: Children are entitled to a €100,000 exemption, but this is progressively lower for other relations, with, for example,  a €1,594 tax-free allowance for grandchildren
• Inheritance Tax Rates: Taxation may range from 5% to 45% for direct heirs and may be applied up to 60% for unrelated beneficiaries
• Forced Heirship Rules: French law dictates that a portion of an estate must be distributed to children or a spouse, although solutions exist to ensure your wealth is distributed as you wish
• Double Tax Treaties: The UK–France treaty limits double taxation on cross-border inheritances, but it must be applied correctly to be effective

We offer tailored estate planning services, including French-compliant wills, trusts, and succession strategies, to help reduce inheritance tax burdens and safeguard your legacy.

Visa requirements will depend on the reason for your relocation and financial circumstances. Our wealth management advisers provide end-to-end support and can help you assess the viability of several  key visa routes, which may include:

• A Long-Stay Visa (Visa de Long Séjour): Available for non-EU residents retiring or relocating to France
• The Carte de Séjour: A renewable residency permit issued after one year
• EU Residency Rights: Apply automatically for EU citizens following registration 
• Mandatory Proof of Means: Evidence that is required for most visas and can include pension statements, proof of bank savings, or documentation showing passive rental income

Chase Buchanan will ensure your application is correctly structured and aligns with your broader goals.

Purchasing or owning property in France may incur various taxes, both regional and national. These may include:

• Notary and Registration Fees: Additional purchase costs, which tend to be approximately 7%–8% of the transaction value
• VAT: Sales taxes of between 5.5% and 20% for new build purchases
• Local Taxes: The Taxe Foncière, or owner’s tax, and Taxe d’Habitation, a separate tax applied only to some second homes
• Capital Gains Tax: May be levied at a standard rate of 19% plus 17.2% social charges, although tapered reliefs apply up to 100% depending on the duration of your ownership.

Our advisers will help you calculate the true cost of your planned property acquisition, manage the tax liabilities linked to your portfolio, and ensure you are aware of potential ownership structures that may optimise your position.

Yes, non-residents can own property in France, but they must be aware of their potential exposure to cross-border taxation if they are tax residents in another country. They may also need to account for the following obligations within France:

• Non-Resident Tax: Rental income is taxed at a flat 20% to 30% rate plus social charges
• Property Wealth Tax: Calculated on French real estate holdings exceeding €800,000
• Capital Gains: May be charged on property sales for a non-primary residence

We help non-residents forecast the investment performance of their French portfolios, assess their ongoing tax exposure and repatriate proceeds from property rentals or sales in a compliant manner.

UK tax wrappers like ISAs and Premium Bonds lose their tax-free benefits when you become an overseas tax resident. Important considerations may include the following, depending on the savings and investment accounts you hold:

• ISAs: Income and gains made from ISAs are taxed under standard French rules, either at a30% flat rate or progressive income tax rates plus potential social charges
• Premium Bonds: Premium Bond prizes are considered taxable income in any tax jurisdiction other than the UK
• UK-Based Pensions: Cross-border pension incomes are typically  taxed in France under the UK–France treaty, with the potential to pay  more favourable tax rates against large lump sum withdrawals

Our expatriate financial planning experts can help restructure your pensions and retirement savings to reduce your tax burden and improve the long-term value you receive from your wealth.

The timing of property sales can be crucial, and selling as a UK tax resident or a non-resident will determine in which country your primary tax obligations arise. It’s important to consider:

• UK Private Residence Relief: An exemption from UK Capital Gains Tax for owners selling primary homes while they remain British tax residents 
• French Capital Gains Tax: May apply to sales of UK-based properties if you have since become a French tax resident
• Currency Planning: Sellers will need to manage the conversion of sales proceeds from GBP to EUR strategically to avoid potential losses 

Should you require more personalised assistance in planning your property sale, we can offer advice to help you time the transaction strategically in relation to your move to France.

The French tax system applies both income tax and social charges to earnings from savings and investments. There are many ways to optimise your position, depending on the nature of the assets you own, but some of the options might include:

• Assurance Vie: A French life insurance-based investment wrapper which offers tax-deferral benefits and reduced taxation after 8 years
• Asset Relocations or Restructuring: Rebalancing assets between UK, offshore, and French-compliant funds or structures
• Aligning Investments With Beneficial Tax Treaty Treatments: Ensuring your incomes are taxed correctly and with all available reliefs within the UK–France treaty
  

Our investment advisers are highly experienced in designing portfolios tailored to your tax residence status, life stage, and requirements. They can run through each of these, as well as many other solutions, in greater detail.

Assurance Vie is a life insurance-linked investment product with numerous tax advantages:

• Tax Deferral: Taxes are not payable on gains until withdrawals are made
• Favourable Taxation: Reduced income tax and social charges apply after 8 years
• Inheritance Benefits: Assets can pass to beneficiaries with reduced or no tax, depending on the value and the age of the owner

Chase Buchanan’s local team here in Bordeaux can provide full guidance to help you review the benefits of incorporating an Assurance Vie into your French wealth strategy.

France has a high-quality public healthcare system, but your rights to free or subsidised healthcare depend on whether you are a permanent resident or citizen of France. Expats may potentially be eligible to access it through:

• Protection Universelle Maladie (PUMa): State healthcare coverage, which may be available after three months of legal residency for long-term expats
• Cotisation Subsidies: Taxes paid by some expat residents with high-value incomes, usually from capital gains and dividends, as a way of making income-based contributions to qualify for healthcare
• S1 Form: A document issued to UK retirees who can then  access care on the same basis as French citizens
• Private Insurance: Foreign nationals and French citizens commonly purchase private coverage to supplement the services they can use, including dental and optical care 

Most expats will require comprehensive private insurance in line with their visa conditions, and we can help clients assess and select coverage that aligns with their visa terms and personal needs, while analysing the most cost-effective products to cover all eventualities.

The UK–France double tax treaty is designed to prevent you from being taxed twice on the same income or gains. It covers:

• Dividends, Interest and Royalties: These earnings are usually taxed in your country of residence with tax credits or relief from the other
• Pensions: Most UK pensions are taxed in France if you are a resident, with exceptions such as UK government pensions
• Capital Gains: Real estate gains may still be taxable in the UK if you retain British-based assets, with French tax residents usually able to claim a corresponding tax credit in France
• Tie-Breaker Rules: These regulations determine your correct residency status if there is a scenario where both countries could regard  you as a tax resident

Our team will assist you in applying treaty rules, minimising tax conflicts, and ensuring accurate disclosures in both jurisdictions.

France does not have a wealth tax regime, per se. Instead, the Impôt sur la Fortune Immobilière (IFI) applies to real estate portfolios with a value exceeding €1.3 million. However, assessments for IFI are triggered when a portfolio or single property reaches a threshold of €800,000.

Key points to be aware of include the following:

• IFI Applies to All Property Owners: Non-residents are exposed only on the value of their French real estate, whereas tax residents must declare all global properties within their IFI calculations
• Rates: Property wealth tax is applied at progressive rates that range from 0.5% to 1.5%
• Exemptions: Primary residences are discounted by 30% against the property’s valuation
• Reporting Threshold: You must file an IFI return if your property assets exceed €800,000, irrespective of whether you have a liability to pay

We can assess your total real estate holdings, optimise the ownership structures of properties, and manage your IFI disclosures to reduce exposure and ensure compliance.

French residents are subject to social charges on most investment income, including interest, dividends, and rental earnings. Non-residents may also be subject to social charges on French-sourced income. 

Our advisers can structure your income to reduce exposure, for example, by using tax-efficient wrappers like Assurance Vie or lower-taxed asset classes.

Yes, you can access UK and offshore bank accounts as a resident of France. However, if you become a tax resident, your  overseas accounts must be declared annually to the French tax authorities. 

We can manage these declarations while ensuring you mitigate the currency risks involved in cross-border transfers,  while optimising your banking using FCA-regulated platforms and Euro-compliant accounts.

Many expats find that international money transfer platforms can be more cost-effective than traditional banks; however, it’s always essential to review exchange rates and administrative charges before transferring larger sums. 

Timing transfers based on up-to-date knowledge of FX trends can help to optimise the value of bigger lump sums, and our advisers will ensure you integrate currency strategy into your financial planning.