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Retirement Planning in France

Apr 11, 2024 | Advice, Lewis Sell, Retirement

France! A country synonymous with culinary delights, artistic heritage, and now, your new home as an expat.

But there’s a crucial aspect you need to navigate with care: your finances.

Living in a new country comes with its set of financial challenges, from understanding the local tax system to planning for retirement. Fear not, though; this guide is your compass to maximizing your expat finances in France, ensuring tax efficiency, and laying the groundwork for a comfortable retirement.

Your Financial GPS

Navigating French Taxation

  • Who’s a Tax Resident? If you’re in France for over 183 days a year or your main home is here, congratulations, you’re officially a tax resident. This title impacts how you file and what you owe.
  • Income Tax: The Staircase System Higher earnings lead you up the tax rate staircase. Yet, there are deductions for various expenses that can help you slide down to a lower tax bracket.
  • Wealth Tax: Dodging the IFI Bullet Own a pretty piece of France? The Wealth Tax might have you in its sights. But don’t worry, with smart asset structuring, you can often shield yourself from its impact.
  • Invest Smartly France offers golden geese like the PEA and Assurance Vie, nesting eggs with tax benefits. A financial advisor can help you pick the right one.
  • Cross-Border Challenges Have ties back home? International taxation is intricate. The goal? Avoid being taxed twice on the same income – a feat achievable with the right knowledge and planning.
A Guide by Your Side

The labyrinth of French taxes doesn’t have to be a solo expedition. Tax professionals who specialize in expat finances are like local guides, leading you through the twists and turns to financial optimization.

Plotting Your Retirement Path: The French Way

Understanding the French State Pension

Contributions to the French social security system unlock the door to the state pension in retirement. It’s a complex formula, but understanding it is key to forecasting your retirement landscape.

Complementary Pensions: The Extra Layer
The French retirement cake has more layers, thanks to complementary pension schemes. Investigating options like Agirc-Arrco can sweeten your retirement deal.

Private Pensions: Your Personal Treasury
Enter the realm of the Plan d’Épargne Retraite (PER), where tax advantages on contributions are just the beginning. Early and consistent savings here can be the cornerstone of your retirement.

Crossing Pension Borders
Pensions from multiple countries? Navigating this terrain requires understanding bilateral agreements and EU regulations to ensure a smooth transition of your pension rights across borders.

Diversification: Your Financial Shield
Retirement savings and variety is your armour. Spreading assets across different classes and countries can protect you from unexpected financial downturns, ensuring a steady march toward retirement.

Your Financial Journey in France

Embarking on your French expat adventure is thrilling, yet managing your finances in this new setting is crucial for a fulfilling experience.

With strategic planning and expert advice, you can navigate the financial landscape of France with confidence, ensuring a prosperous and secure future.

And remember, if the journey seems daunting, we’re here to light the way. Reach out to see how we can support your financial voyage in France, turning challenges into victories on your expat journey.

If you have any further questions or need personalized assistance, don’t hesitate to reach out.

Written by: Lewis Sell – Independent Financial Adviser

This communication is for informational purposes only based on our understanding of current legislation and practices which are subject to change and are not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

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By scheduling an appointment with an adviser they will reach out to you at your requested time. 
Personal advice, whenever it suits you.

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