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RESIDENCY PERMITS

Checklist: How to retire to France

For many this is a lifelong dream, but there are some practical issues to be addressed before you can begin your retirement in France.

Published: 18 October 2021 16:49 CEST
Updated: 1 March 2022 14:17 CET
Retiring to France isn't all sunbathing
Retiring to France isn't all sunbathing. Photo: Frank Perry/AFP

Long, lazy afternoons in the sun, picking fresh figs off the tree and then opening a bottle of rosé? Sure, retirement to France can involve all these things and much more, but first you need to think about boring but important things like residency permits, pensions and health insurance.

Immigration

Starting at the beginning, you need to ensure that you are living legally in France. For EU citizens this is fairly straightforward, but non-EU citizens (including Brits) will need a visa in order to start a new life in France.

If you’re retiring and therefore don’t intend to work in France, you probably want a visitor visa.

This requires proving you have sufficient financial means – either savings or an income such as a pension, rental income or investments – giving an undertaking that you won’t work in France and there’s also a fairly hefty stack of paperwork to assemble. Full details on the process HERE.

Once you get your visa and arrive in France that doesn’t mean that the admin is over, you will still have to register for residency once you get here.

Pensions

Once here, you will need to make sure you have enough money to pay for Cognac and baguettes, and for many that will be a pension. People who move abroad once their pension has already begun to pay out can generally have it transferred to their new address with few problems, although if your pension is not paid in euros, remember that currency fluctuations can have quite a drastic effect on your monthly income.

If, however, you take early retirement and move abroad before your pension begins to pay out, check carefully that this will not affect your payouts.

Countries need to have international social security arrangements in order for you to begin claiming a state pension from another country. For EU citizens this is covered by Bloc-wide pension arrangements, but other countries need bilateral treaties, and the lack of one between France and Australia has seen many Australians in France forced to move back in order to become eligible for their pension.

While Brits who were living in France before the end of the Brexit transition period kept their existing pension rights, those who move now no longer benefit from joined-up EU pensions, if they have worked in more than one country.

READ ALSO

Taxes

Once you are resident in France you will need to fill in the annual tax declaration – even if you are not earning in France. If all your income (eg a pension) comes from abroad and you come from a country that has a double taxation agreement with France (including the USA, UK, EU and Australia) then you won’t have to actually pay any income tax in France, but you still have to complete the annual declaration.

There are also property taxes and the TV licence to consider.

READ ALSO The hidden costs of owning property in France

Healthcare

Everyone will need healthcare sooner or later, but the rules here can be different for foreigners who worked in France before retiring than for those who have never ‘paid in’ to the French system.

In most cases if you move here on a visa, you will need to show proof of private health insurance for your first year.

Once you move, you can register within the French health system, but who pays your bills may depend on whether you are already in receipt of a state pension and whether your home country has an agreement with France.

While waiting for registration, EU citizens can use the European Health Insurance Card (EHIC) while Brits can use the new UK-specific version, the GHIC, although this does not cover everything and should not be used as long-term health cover.

READ ALSO Health insurance: What are the rules for new arrivals in France

Transport

You’ll also have to keep in mind how you will get around, and if you live in a rural area that will almost certainly mean a car.

If you’re an EU or UK licence holder you can swap your licence for a French one, but if your licence is from the USA then the State in which you obtained it is crucial – not all US states have reciprocal agreements on swapping driving licences with France and if you’re unlucky enough to come from one of those, you face taking a French driving test before being allowed behind the wheel.

In better news, once you get your French driving licence there is no upper age limit or obligation to renew it once you hit a certain age, although the local Préfet can order a medical examination in cases where there is some doubt about the driver’s fitness to be behind the wheel. This usually follows an accident.

More good news if you’re going by train, as there are discount cards available to over 60s, while the Paris region also provides a free monthly travel pass for over 65s.

Old-age care

While you may be fit and active when you move to France, at some point you may become ill or infirm and need extra help.

France has a strong system of home-care to enable people to stay in their own homes for as long as possible, but there are also residential care homes for those who need them.

There are no limits to foreigners accessing care but who pays for it can vary depending on your home country and whether you have ever worked in France. Full details here.

Reader question: Can I move into a French care home as a foreigner

Language

It might sound obvious, but you will have more fun in France if you speak the language. While it is possible to interact only with English speakers in certain areas of France, official functions generally have to be done in French.

Plus, the whole experience of moving abroad will be a lot richer if you can chat to the locals and understand the culture, so if you have long-term plans to retire to France, start now with learning the language.

READ ALSO How easy is it to move to France if you don’t speak French?

Social 

Consider also the social aspect of your new life.

At The Local we’re obviously big fans of moving abroad, but we would never deny that it can at times be difficult and lonely, and if you’re not working it can be harder to make friends.

So think in advance of how you will meet people and just how isolated your new place is – and if you’re moving to rural France, always make sure you have visited the area in the winter as well as the summer.

READ ALSO How to make French friends in France

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TAXES

What to do if you’re struggling to pay a French tax bill

Income tax bills come due in France from September 26th, while property owners will also be receiving property tax bills in the autumn – but if you’re worried about your ability to pay, options are available.

Published: 12 September 2024 10:30 CEST
What to do if you’re struggling to pay a French tax bill

France is a highly taxed country, so if you live here you probably already accept the fact that you will be paying a lot of tax.

But if you’re struggling to pay the bills, you have options, and in most cases the initial advice is the same – contact your local tax office and ask for help.

Income tax

If you’re registered with the online tax portal and make your declarations online you will have already given your bank details to the tax office and they will take the money out of your account directly (after sending you a bill so you know how much will be going out).

If you owe more than €300, the money will be taken in four instalments – this year the payment dates are September 26th, October 25th, November 25th and December 27th.

Defer payment

If you’re concerned about your financial situation you may request a deferment (a délai de paiement) from tax authorities, giving you more time to pay what you owe. 

If you’re asking for a deferment, you can do so online:

  • Log on to your personal space at impots.gouv.fr, and access “messagerie sécurisée” (secure messaging);
  • Click on “écrire” (write);
  • select “j’ai un problème concernant le paiement de mes impôts” (I have a problem paying my taxes);
  • then “j’ai des difficultés pour payer” (I am having trouble paying);
  • Select the tax concerned and follow the instructions on the form.

If you prefer to deal with the matter face to face, you can visit your nearest tax office.

Whether you are asking online or in-person, you must provide a completed difficultés de paiment form – find that here – plus;

  • your tax demand;
  • a bank statement;
  • supporting documents showing your incomings and outgoings (such as pay slips, rent bills, utility bills, etc).

Be aware that deferment requests are handled on an individual basis.

Write off a bill

In certain cases – if you have recently been made redundant, for example – you may ask for tax relief (known as a remise gracieuse), in which part or all of your bill is written off.

Your request for a remise can be made online, using the secure messaging system mentioned earlier. Alternatively, you can go to your nearest tax office in person.

You should fill out a completed difficultés de paiement (payment difficulties) form, and attach or take along corresponding documents.

  • Tax authorities will take into account, in particular, an unforeseeable loss of income (unemployment, for example);
  • Other exceptional circumstances (such as the death of spouse, separation, disability) or abnormally high expenses (illness);
  • a disproportionate difference between the size of your tax bill and your level of income.

Ability to pay

When you apply for a deferment or relief, your ability to pay is analysed, taking into account, among other things:

  • your assets and the resources of people living with you, whether taxable or not (social benefits, municipal assistance, RSA, etc.);
  • essential household expenses (food, healthcare, insurance, housing, transport to and from work, etc.);
  • whether your expenses match your resources and the composition of your household.

Be aware that, if your expenses exceed your financial capacity solely because of your lifestyle choices, your application will be rejected.

Furthermore, depending on your situation, the granting of tax deferment or relief may be subject to :

  • prior payment of outstanding taxes;
  • the filing of a tax return, if you are not fully up to date with your tax obligations;
  • a waiver of any litigation relating to the taxes concerned by the application.

Usually, requests for deferred payment or tax relief are processed within two months. If you have not received a reply within this period, you should assume your request has been rejected. 

But this period may be extended to four months if your situation is complex. In this case, the administration must inform you of this extension before the initial two-month deadline expires.

Property tax

If you own property in France, autumn is also the time when you will be getting property tax bills (tenants no longer pay property taxes after the phasing out of the taxe d’habitation.

All property owners get a bill for taxe foncière while second-home owners will also get a bill for taxe d’habitation – find a full explanation of the system HERE.

Many people have noticed a steep rise in property tax bills in recent years, due to changes in the tax system. If you think your bill is incorrect, here’s how to challenge it.

If the bill is correct, but you are having difficulty paying you can contact your local tax office as described above to request a deferment of the bill. Property tax can also be paid in monthly instalments, rather than all at once.

There are also some groups who are exempt from paying, or entitled to a reduced rate.

It’s sometimes mentioned that older homeowners in France are exempt from taxe foncière (property owners’ tax). This is wrong, but depending on your situation, assistance in the form of a reduction or an exemption may be possible. 

If you are over 75 years old on January 1st of the tax year, you can benefit from an exemption from property tax for your main residence (not a second home). Two additional conditions must also be met.

Concerning the occupation of the accommodation:

  • you live alone or with your spouse or civil partnership partner;
  • you live with dependents for the calculation of income tax (children, dependent persons).

Concerning your financial resources: 

  • the amount of your reference tax income from the previous year must not exceed a certain ceiling specified by article 1417-I of the General Tax Code, which is set by a decree published each year;
  • The income limits not to be exceeded depend on the number of parts retained for the calculation of income tax;
  • Holders of the solidarity allowance for the elderly (ASPA) or the supplementary disability allowance (ASI) are exempt from the financial resources requirement.

If you are over 65 and under 75 on January 1st of the tax year, you can benefit from an automatic reduction of €100 on property tax on your main residence.

Two additional conditions must also be met:

  • you occupy your accommodation under the conditions listed in the exemption from property tax for persons aged over 75;
  • the amount of your reference tax income from the previous year does not exceed a certain ceiling specified by article 1417-I of the General Tax Code.

Neither of these exemptions can be used for second homes. Since the taxe d’habitation is now only paid by second-home owners the opportunities for a deferment or exemption are very limited, since the tax office assumes that second-home owners are financially stable.

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