Financial Advice For British Expats In France
With its proximity to Europe, endless and rich culture to explore and fantastic food, it’s no wonder that France is one of the top choices for British Expats seeking the Joie de vivre.
The life changing decision to relocate can be exciting and bewildering all at once. The opportunity to immerse yourself in a new culture with new experiences comes with an array of difficult adjustments.
Our comprehensive guide to moving to France will cover all you need to know about banking, tax laws, healthcare, investments, pensions and inheritance.
So, whether you're starting a new job, embarking on studies, or readying yourself to enjoy retirement, we aim to ensure that your finances are one less thing to worry about.
Article Summary
01 The Banking System
When starting your new life in France, you need to make local payments easily, so opening a local bank account is a great place to start, especially since you may require a local account to receive your salary or buy property or pay rent.
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We recommend you do your own research to find the perfect bank for you and your needs, but some great options include:
BNP Paribas – the largest bank in France, and one of the largest in Europe, BNP Paribas offers a range of account options for international residents, with English- speaking staff in some branches, a large network of ATMS, and extensive online services. BNP Paribas offers Insurance products, Loans and investment funds for expats. Cons: Higher fees than online banks
Crédit Agricole - the second largest bank in France, Easy to open account with only your passport and proof of address. They even have a separate English speaking service called Britline for those who are not yet versed in the French language. Cons: fees can vary between regional branches and French cities.
Societe Generale –With specialised expat services. This is a great option for students or those moving to France with children because of the array of options they offer for young people, from financing driver’s lisences to student loans. Cons: may ask for more documents than other banks, Fees, non English speaking staff
HSBC –Traditionally a favoured option for expats because of the range of accounts they offer and the access to English language services. HSBC even offers an ‘offshore’ account for Expats, although their fees may be higher than local banks.
Digital Banks – If you are comfortable with online banking, digital bank options such as Revolut, Starling and N26 are great options for expats. These usually offer great service, capped exchange rates and lower fees.
02 The Right Currency Exchange for Expats
Consider keeping an eye on currency exchange rates, and only transferring money to and from your new French bank account once rates are favourable. Resources such as This one can help you follow expected trends and potential volatility in exchange rates.
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There are many different options for transferring money overseas, with varying fees, services and convenience. Traditional banks can offer more accessibility, customer care and security, but these may incur much higher fees and usually take a few working days to process.
Online transfer services can be far more cost effective and sometimes instant. Sending money to/from Frace from most EU destinations is usually fast and cheap, especially with services such as Wise (formerly Transferwise), Remitly, Xoom and Revolut.
These services are competitive and offer similar rates, EXIAP is a helpful service which transparently compares International transfer fees and exchange rates for various online platforms.
03 Tax Obligations for Expats in France
Despite the French culture being known for embracing a work life balance, the tax system can still be hard work to navigate.
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The French tax year runs from January 1st to December 31st, and tax residents pay income tax on their worldwide income. You will be considered a tax resident of France if:
You spend 183 days or more in the country,
Your primary residence is in France
Your job or business is based in France
France is the centre of your economic or financial interests
Residents may have to pay Income Tax, Social Security Contributions, Wealth Tax (applies to real estate assets valued over €1.3 million), Property Tax and in some cases Residence Tax.
Non- residents may still be taxed on any French sourced income or withholding taxes on dividends or interest.
France has an extensive network of tax treaties with other countries worldwide, meaning residents will avoid double taxation. Consult a professional for advice to ensure you are paying the right tax in France, meet your deadlines and avoid any penalties.
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Income Tax
France taxes its residents progressively at rates starting from 11% on any income over €11,294, to the highest rate at 45% for earnings over €177,107. This also applies for Self-employed workers and sole traders
Even non- residents are taxed on all French-sourced income at a flat rate of 20% for earnings up to €27,478 and 30% for anything above.
05 Social Charges
French social charges, known as "les charges sociales," are taxes that fund the social security system which provides social services such as healthcare, pensions and unemployment pay. These charges are deducted directly from an individual’s taxable income and can range from 13% to over 40%.
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If you are employed in France, your employer will usually pay a portion of these contributions, with another portion being deducted from your paycheck. Those who are self- employed are responsible for their own contributions, and these charges can vary greatly depending not only on income but also employment type and industry.
Various reductions or exemptions may apply, for example new businesses, startups and those working in certain industries.
06 Corporate Tax
In recent years, corporate tax rates in France have been decreasing. Since 2022, all companies now pay a flat rate of 25%, regardless of profits. Smaller businesses may benefit from a reduced rate of 15% on profits up to €38,120.
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Corporate tax is payable quarterly on March 15th, June 15th, September 15th and December 15th.
France offers various corporate tax reductions and credits to companies. Some of these include:
A tax credit of up to 30% on eligible expenses for companies who invest in research and development. (For example, training staff in scientific, medical and engineering fields)
New business tax credits (available only in certain industries) to support small businesses and startups
Credits for businesses employing apprentices
Credits for expenses related to improving energy efficiency
Reductions and credits for companies involved in developing video games
To discover more ways your business could benefit from the many tax reductions available, we advise consulting a professional who specialises in French corporation tax.
07 Capital Gains
Capital gains are taxed in France on profits made from shares, property and land.
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There is a tax relief available for the sale of your primary residence, but the profits of sales of any property which is not your main home will be taxed at 19% for up to €50,000. Above this threshold, the rate is 19% plus surcharges between 2% - 6%, with additional social charges of 17.2%.
Profits from savings and investments are taxed at a flat rate of 30% (comprised of 12.8% income tax and 17.2% social levies).
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Wealth Tax
In 2018 France introduced IFI (Impôt sur la Fortune Immobilière), a wealth tax which applies only to real estate assets exceeding the value of €1.3 million. If your assets are above this value, you will be taxed only on the value above €800,000.
09 Inheritance Tax & Limitations as an Expat
As you plan your future in France, you may want to familiarise yourself with the inheritance laws and how they will affect the assets you eventually leave to your loved ones.
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Drafting a will and estate plan before your move will protect your wishes of how you’d like your assets distributed to your heirs, as well as minimising any potential tax liabilities.
French inheritance tax, known as 'droits de succession' in France and varies depending on the relationship between the deceased and their heir. For children and parents, the tax allowance (value allowed before tax is applied) is €100,000 euros each. For grandchildren this is drastically lower at just €1,594.
Inheritances over a certain amount are taxed at different rates. These rates range from 5% to 45% for direct succession. For indirect succession, the tax rate is 60%. The rates are determined by the value of the inheritance.
Working with a French tax specialist who can help you navigate the complexities of French inheritance law is essential.
The Wealth Genesis can offer advice and create a tax optimisation strategies and estate planning structures to protect your inheritance and explore tax-efficient and legally valid options.
10 The French Assurance Vie
If you’re planning on moving to France, it may be alarming to learn of the progressive taxes and social charges the country imposes on its residents.
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Thankfully, the French Assurance Vie offers an opportunity to grow and protect your wealth whilst reducing future tax bills.
The 'Assurance Vie' is a popular investment which combines life insurance coverage with potential investment return. It is available to French residents who intend to stay long-term (for at least 8 years).
The policy allows you to invest in various financial products, such as stocks, bonds, and mutual funds. You won’t be taxed on any profits made if they are kept within the policy.
Assurance Vie is also favoured for its flexibility; allowing policyholders to choose from a range of investment options to suit their risk tolerance and financial goals. It is possible to withdraw funds from the policy at any time, though this may come with tax implications or charges.
Overall, the French Assurance Vie could be a great option for any expats moving to France for a long time and seeking to protect their wealth from high tax rates. Click here to view our full guide to the policy and the benefits it could offer you.
11 Your Expat Healthcare & Insurance
France is known to have one of the best healthcare systems in the world and has been ranked #1 by the World Health Organisation. It is a legal requirement to have health insurance to live in France, whether private or subsidised by the public healthcare service.
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Expats are eligible for coverage under the French healthcare system (PUMa) after three months of legal residency in France. Even then, most will typically need to pay Cotisations Sociales (Social Contributions) towards their healthcare in France. Applications to the French social security system can be made at your local CPAM (Caisse Primaire Maladie) office.
It’s advisable to purchase private health insurance to cover you for at least the first three months in France. Many expatriates and French citizens alike opt for additional private health insurance as the public service does not cover copayments, private hospital rooms, dental or vision care.
Allianz, AXA, and April International all offer comprehensive healthcare plans for expats in France, but it’s important to shop around and research different insurance providers before you move. Make sure you consider factors such as premiums, coverage limits and deductibles.
12 Life as an Expat in France: Budgeting & Living Expenses
Creating a budget for all living and leisure expenses is essential for a successful relocation. Consider your lifestyle expectations, and plan for rent or mortgage payments, utilities, groceries, transportation and entertainment.
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Generally speaking, property prices and the cost of living are considerably lower in France than countries like the UK and US, but this may vary depending on which area you are moving to. The French government advise that a single person will need at least €1,800 per month to live comfortably as an expat, but this may not be enough for larger French cities or popular tourism destinations.
Expats moving to France but still earning income in their native currency will also need to factor in exchange rates to their budget.
13 Expat’s Retiring in France
British and other non-EU citizens who wish to retire in France will now need to apply for a long-term visa (Visa de Long Sejour) in advance, which are quite easy and straightforward to obtain. This permits retirees to stay for 12 months and is renewable. Once living in France, you can then apply for a residency permit (Carte de Sejour).
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To apply for your visa, you will need to show:
- Passport
- Proof of medical insurance (Either private or under the PUMa system)
- Proof of accommodation in France
- An attestation letter to confirm you will not work in France
- Proof of means of income (this can be savings or pension income).
It’s important to note that the minimum income requirement is currently €1,398 (net, after tax and social contributions) Per individual per month.
Navigating the intricate French pension system can be tricky. There are a few retirement savings options available to expatriates, such as pension plans, retirement accounts and individual savings accounts.
It’s easy to transfer your existing pension to France. The Wealth Genesis provides expert advice to ensure your retirement in France is successful and that you get the most out of your investments, as well as a flat-fee pension transfer service.
14 Investments & Management for French Expat Finances
As the world’s seventh largest economy, with robust financial regulations, and home to an array of thriving international businesses, investing in France may be a great choice to grow your savings and diversify your portfolio.
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Our advisers can help you identify the best opportunities as well as the potential risks and tax implications. With extensive experience working with British expats in France and knowledge of French regulations, we have the expertise necessary to protect your wealth and maximise your returns.
The Wealth Genesis are specialists at developing long-term investment strategies uniquely tailored to your goals and risk tolerance.
Our Verdict
Adjusting to French life can be extremely daunting. From the language barrier to the complex laws around healthcare, taxes, pensions and inheritance, it can be impossible to know where to start when it comes to your future planning.
Seeking expert financial advice will ease the stress of the unknown, and help you relax into the French lifestyle, knowing you have the correct plans in place. The Wealth Genesis is here to help.
In a country famed for a fantastic quality of life, living the expat life in France can be a dream. So, whether you’re most looking forward to the climate, the scenery or the delicious food and wine, we hope you enjoy your exciting future ahead.