Retiring abroad: France

If you dream of retiring abroad like many UK pensioners, it's a big decision that can affect your pensions. In a poll carried out in 2006, the majority of Britons, 53%, would consider emigrating. Indeed, more than 300,000 individuals leave the UK each year to start a new life overseas. Estimates suggest that up to 5.5 million British nationals now live abroad.

France is the third largest expat destination, for Britons who choose to live abroad in Europe. According to the French National Statistics Office in 2014. There were 151,800 British citizens estimated to be living in France in 2014.  As of 2016, the Department for Work and Pensions data shows that 66,773 Britons received a UK state pension in France.

Ranking British expats by country

• Australia
• USA
• Canada
• Spain
• Ireland
• New Zealand
• France
• South Africa
• Germany
• Italy

 

Retiring abroad France: post-Brexit - Long Stay Visa (Visa de Long Séjour)

Firstly, living in both the UK and France. This is what many retirees who can afford the upkeep of two properties are doing at present. However, you are restricted to a maximum of 90 days at a time.

Although the 90 days rule is about to be overturned to six months. French MPs recently voted to allow British people with second homes to stay without a visa for up to 180 days in any year.

Secondly, the Long-Stay Visa in France is the easiest way to retire to France. Although you have to fulfil some requirements. A Long-Stay Visa is a type of residency permit in France for non-European citizens who intend to live in France.

For UK citizens who are Retiring to France, the visa application process is quite straightforward. This residence permit is non-lucrative.  You will not be permitted to engage in any economic activity in France. Therefore, ideal for UK pensioners. 

The following is required:

• Proof of accommodation in France
• Medical insurance or bought into the French state insurance scheme
• Proof of legal status in your home country
• A letter confirming not to engage in employment in France
• Proof of means of income
  
  

The minimum income is currently €1,747.2 per month (gross). This equates to around €1,383.08 per month (Net) after income tax and social contributions. 

A couple must show a combined net income of around €2,800 per month.

This represents an annual gross income of €20,964 per retiree.

Please note: Personal savings can be considered a substitute or supplement for actual monthly income. Although the French Consulate service does not provide figures as to what level of savings can be taken into account. It is likely to be at least 2-3 times the annual minimum income requirement (so €1,747 per month x 12 months x 3 years = €62,892).

Retiring abroad France: pension advice

The problem for most UK nationals. Is that, most UK advisers are not regulated to advise EU residents. These went with Brexit.

Unless they are regulated in the EU, they should not be advising you.

Should the UK firm have taken the appropriate steps to advise EU residents. They may not be aware of the complexity of the French tax system.

Although Regulated Advice cannot help here. You must find an advisory firm regulated in France that knows UK regulations. The firm would also require knowledge of UK and French taxation. Including their interaction.

Retiring abroad France: taxation advice

If you move abroad, you don't have to transfer your UK pension pot.

As a French resident, your UK state pension is only taxed in the UK. But any income derived from any other pension will be subject to taxation in France.

However, pension income up to €10,300 are zero rated.  However, you will still need to declare it. 

Pension income above €10,255 are liable to income tax (Impôt Sur Le Revenu) and social security contributions (Cotisations de Sécurité Sociale).

It is important to note that France does not have a 'tax-free lump sum'. If you have not moved to France yet and want a lump sum, taking it while you are still a UK resident will save you tax.

Qualifying Recognised Overseas Pensions Scheme (QROPS)

The setting up of a foreign exchange account should address currency risk.

Alternatively, expats often consider transferring their pensions to a QROPS, avoiding currency transfer risks.

Retiring abroad:  Australia | New Zealand | USA | Canada | Spain | Portugal | Italy | France | Germany | Ireland