Pensions in France

Hundreds of Brits choose to retire to France each year thanks to the sunny climate and impressive healthcare system.

But many are left with concerns about their pensions and what kind of affect the move will have on the money they receive during retirement.

For most people who retire and become French tax residents, their pension will be taxed according to the French progressive scale rates of income tax, which can range from 0 per cent to 40 per cent.

As well as income tax, those living in France also pay a social charge of 7.1 per cent on their pensions, although this does not necessarily apply to all.

Taxation on French pensions

The taxation depends on the type of pension which the retiree holds, which could be either a state retirement pension, an occupational pension, a government service pension or private pension.

This can cause some confusion for newcomers as the system differs considerably from the UK depending on the pension plan and it is recommended that advice is sought on the best way to progress.

Seek advice on pensions in France

There are a number of experts in the UK which specialise in giving financial advice to people who are planning to retire abroad and particularly to France.

Another important issue which needs to be taken into account is that UK pensions are often taxed at the source and residents of France will therefore have to prove to HM Revenue & Customs that they are already paying tax abroad.

In order to do this, a Form France/Individual must be attained, stamped by the French authorities and handed to UK officials.

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