France
Tax Tips & Solutions Before Moving to France
Before moving to France, it’s crucial to prepare for the tax implications that will affect your savings, property, and investments. One of the key considerations is Main Residency Relief — a valuable tax benefit available in many countries. Once you become a tax resident in France, this relief may no longer apply. If you’re planning to sell your property, it’s often more tax-efficient to do so before becoming a French resident to minimize or eliminate Capital Gains Tax.
Review Existing Investments: Accounts such as UK ISAs, which offer tax advantages in your home country, do not hold the same benefits under French tax law. It’s essential to review and potentially restructure your investment portfolio before the move to ensure it aligns with France’s tax regime.
By taking these steps before relocating, you can avoid unexpected tax issues and optimize your financial position in France.
French Compliant Savings & Investments
When moving to France, one of the most effective ways to structure your savings and investments is through an Assurance Vie (AV). This versatile and widely-used investment vehicle offers a range of benefits, making it ideal for long-term financial planning and wealth management.
Assurance Vie allows you to invest in various global funds, from low-risk options to market-linked investments, providing both flexibility and growth potential. One of its key advantages is the tax treatment of withdrawals, which becomes more favourable the longer you hold the policy. Over time, the tax rate on gains reduces significantly, making it a highly efficient choice for expatriates.
Not only does the Assurance Vie help you defer taxes while your investments grow, but it also offers options for inheritance planning, allowing assets to be passed on more tax efficiently.
By planning ahead and setting up an Assurance Vie before your move, you can maximize your investment growth while minimizing your tax liabilities in France.
Pensions and Retirement Options
Handling pensions can be complex. Depending on your pensions and personal situation, transferring to a French-compliant pension vehicle, such as QROPS or International SIPPs, might provide key benefits.
Financial Planning Support for US Connected Persons
US nationals moving abroad face unique financial challenges that require expert guidance. Many American expats encounter difficulties such as:
- Limited access to US-based financial institutions while living overseas
- Restrictions on investing in US mutual funds from outside the US
- Compliance with both FATCA (Foreign Account Tax Compliance Act) and Common Reporting Standard rules
- Managing retirement accounts, including 401(k)s, across international borders
Due to these complexities, working with a European-based advisor who understands both US tax obligations and local tax laws in your new country is essential. A tailored financial plan can help you overcome these hurdles, ensuring that your investments are structured efficiently and aligned with your long-term goals.
By planning ahead and making informed decisions, you can navigate these challenges smoothly, safeguard your wealth, and make the most of your financial opportunities while living abroad.