How to Retire in France: Costs, Visas and More

Do you dream of spending your retirement drinking Bordeaux and champagne in Paris? Perhaps you want to spend it in a beautiful seaside villa in Biarritz or the ski the Alpine slopes of Chamonix at the base of Mont Blanc? If France sounds like your idea of a dream retirement destination, here’s what you need to know.

Getting a French Visa

Normally it is a simple matter to visit France. But the COVID-19 pandemic has prompted the government to suspend issuing visas, including short-stay visas.

Once the pandemic has passed, it should be relatively easy for Americans to get long-term residency in France. If you plan to stay in France for more than a year, you will need to get a “carte de séjour”. This is a residence permit and you must get it while still in the United States. It is not possible to apply for a French residency card as a tourist while in France. You will need to provide plenty of documentation including:

• A passport
• Application forms
• Extra passport photos
• Proof of financial self-sufficiency
• Proof of international medical insurance
• Proof of where you will live in France

You can apply for the visa at a French consulate or by mail, but you will need to report to a consulate or embassy in person for an interview as well. You can expect the visa process to take at least one to two months. Additionally, you should contact your closest French consulate before sending in your application materials to ensure that you have everything you need. This will help to ensure that the application process does not take longer than necessary.

Once you are in France, you will have to reapply for your carte de séjour annually. After three years of living in France under this residency permit, you can apply for a 10-year residency card. This residency card will allow you to work if you want to and will renew automatically.

Housing Costs in France

In general, the cost of living in France and the United States is similar, but rent costs significantly less in France than in the United States. According to data from Numbeo, the average rents in France are 37.89% lower than in the United States.

Because rent is significantly less in France than in the United States, you can live a similar lifestyle for less. If you keep the same budget as you have before moving to France, you’ll likely have plenty of funds left over each month to either spend or save. Food, utilities, entertainment, and other consumer goods are priced similarly to what you’d find in the United States.

Healthcare in France

Healthcare in France has been ranked the best in the world, according to the World Health Organization. As a resident, you will have the same healthcare benefits as French citizens. You will be asked to show proof of foreign health insurance to obtain your visa, but you can receive national healthcare benefits when you are a French resident.

A typical visit to the doctor costs $30. As a resident, you will receive 70% of your healthcare costs back. Prescription medicine is less than half the price you pay in the U.S. for most drugs. If you develop a need for long-term healthcare such as diabetes or cancer treatment, the medication will be free. You will be expected to pay any fees or charges at the time of your visit.

Hospitals and private clinics offer some of the best quality of care in the world. Specialists have fixed fees dictated by the government, so you do not have to worry about overpaying in the French healthcare system.

 The healthcare system and health insurance in France

French law stipulates that all residents of France must have health insurance. This can be through the public healthcare system or a private scheme.

In 2016, the government introduced of a new universal public healthcare system – Protection Maladie Universelle (PUMA). The scheme’s introduction means most expats are now eligible for state French health insurance (l’assurance maladie).

Individuals not covered by the PUMA or who want to increase their health coverage can instead opt for private health insurance policies.

How to apply for public health insurance

The first step to acquiring health insurance in France is to either join the social security system or visit your local CPAM (Caisse Primaire d’Assurance Maladie).

Employers typically register their employees with social security and arrange their healthcare formalities. However, it’s your responsibility to check this has been done. Self-employed workers apply via the Régime Social des Indépendants (RSI).

If you qualify under PUMA, visit your local CPAM or send your application by post. CPAM assesses your rights, but the social security authority determines if you contribute towards your healthcare costs. If you earn below a certain threshold, you qualify for free healthcare under CMU-C.

Firstly, you’ll need to present a CERFA form, proof of identity and residence, translated birth and marriage certificates, proof of three-months’ residence in France, banking details, evidence of income, and your declaration de medecin traitant (doctor registration). During registration, you can add beneficiaries or dependents.

After activating your health insurance, you may need to formally request your carte vitale. This can take a long time to be processed, but you can ask for a temporary insurance card (attestation de couverture sociale) to cover you while you wait.

You can update your carte vitale annually by inserting it in the green box at CPAM offices, hospitals, and pharmacies.

Registering with a doctor in France

Residents over 16 years old and covered by the state medical insurance are required to register with a family doctor (médecin traitant). This is to access the full reimbursement of their medical costs.

Failure to do so will lead to penalties of higher medical fees and lower reimbursement rates.

Anyone 16 years or younger can visit any GP without fear of financial penalty. Once you’ve registered, you will receive a Declaration de Médecin Traitant. For more information, read our guide to registering with French doctors.

SOURCE: https://www.expatica.com/fr/healthcare/healthcare-basics/guide-to-health-insurance-in-france-108848/

Taxes in France

In your first few years in France, you will not be authorized to work. If you choose to work when you receive your 10-year residency card, you will be taxed at the same rate as locals.

If you plan to use the French healthcare system, you will need to be paying into the national social security fund. If you are not taking an income in France, you must fill out a Form E121/S1 from the Department of Work and Pensions.

Foreign residents of France are also taxed on their retirement income. Whether this is from a pension or otherwise, you will be required to show proof of your financial independence and pay taxes accordingly.

When does one become a French tax resident?

Subject to international tax treaties, you will be considered to be domiciled in France for tax purposes if you meet at least one of the following criteria:

1. Your home is in France: it is your usual/permanent place of residence.
   In the presence of minor children, judges can check in which country they are enrolled in school to determine their usual place of residence.
2. You reside mainly in France: this is the famous “183 days” rule. Thus, if you spend more than half of the year in France, you become a French tax resident.
3. You are working in France, whether or not you are an employee.
4. You have in France the center of your economic interests: it is in France that you have made your main investments, or that it is the headquarters of your professional affairs. It is in France that you derive most of your income.

As soon as you are considered to be domiciled in France for tax purposes, you are subject to an unlimited tax obligation: you must declare all your French AND worldwide income in France.

In which country will my pensions be taxed?

Will your income be taxed twice? do not panic! France and the United States have concluded a tax treaty in order to avoid double taxation situations. The procedures for taxing pensions are detailed in Article 18:

“Amounts paid under the social security legislation or similar legislation of a Contracting State to a resident of the other Contracting State or to a citizen of the United States, as well as amounts paid under a pension plan and other similar remuneration arising in either Contracting State in respect of previous employment to a resident of the other Contracting State, in the form of periodic payments or a lump sum, shall be taxable only in the former State. For the purposes of this paragraph, payments under a pension plan and other similar remuneration shall be deemed to arise in a Contracting State only when paid by a pension plan or other retirement plan established in that State.”

In other words, this means that pensions and payments recognized as such are taxable only in the “paying” country. Thus, pensions from American sources are taxable only in the United States.

Which pension schemes are recognized by France?

For the purposes of Article 18 of the Tax Convention, France recognizes*:

• Qualified plans under section 401 (a) of the Internal Revenue Code;
• Individual retirement plans (including individual retirement plans that are part of a simplified employee retirement plan that meets the conditions of section 408 (k), individual retirement accounts, individual life annuities and accounts covered by section 408 (p) ];
• The qualified plans covered by section 403 (a) and those covered by section 403 (b) are generally considered to be a pension plan established, established and recognized for tax purposes in France.

Do you have any reporting obligations in France?

Yes, as a French tax resident you are required to declare all your worldwide income. Article 24 of the same tax treaty defines the procedures for avoiding double taxation. Thus, income that is only taxable in the United States must be declared on the French tax return, but the tax in France is cancelled thanks to the charging of a tax credit equal to the amount of the corresponding French tax.

SOURCE: https://www.cabinet-roche.com/en/taxation-of-american-pensions-in-france/

Safety in France

Overall, France is a safe country, especially outside large cities. In a few urban areas, though, the French have had a recent history of terrorist attacks, and there is crime in some of the poorer banlieues (suburbs) around Paris. They have made several changes to their public security measures and have implemented anti-terrorism powers. On the whole, violent crime, vehicle crime and otherwise occur at similar rates to the United States.

Be sure to check the website of the U.S. State Department for any travel alerts.