An Expat Guide to Living in France (Updated 2025)
If you’re a UK citizen living in or planning to move to France, it’s essential to understand how your finances will be affected. France’s tax system is notably different from that of the UK, and there are serious consequences for non-compliance.
Alongside our expertise in Retirement and Investment planning and to help you navigate local tax situations and reporting, we’ve partnered with local experts based in France who provide on-the-ground insight and support. Our combined knowledge ensures you get practical, compliant, and tax-efficient advice tailored to expat life.
This guide walks you through key areas: residency rules, taxation, pensions (including QROPS and SIPPs), social charges, and — importantly — Assurance Vie, a powerful financial planning tool in France.
Life in France as an Expat
Asset Reporting
Once you’re a French tax resident, you must declare all foreign-held assets, including property, trusts, bank accounts, and investments. Failure to report can lead to harsh penalties — up to €20,000 or 12.5% of the undeclared assets.
Especially since 2013, the French authorities have vFrance, they may be treated as undeclared.
French Tax Residency
You are considered a French tax resident if
- You spend more than 183 days/year in France.
- Your main professional activity is in France.
- Your centre of economic interest (assets, investments) is in France.
- Or your family lives in France, even if you work abroad.
As a resident, you’re subject to worldwide taxation in France — so professional advice is crucial.
French Taxation & Social Charges
Income Tax
French income tax is based on your household, not individual earnings. The more dependents, the lower your average tax rate.
2023 Tax Bands:
- 0% up to €11,294
- 11%: €11,295 – €28,797
- 30%: €28,798 – €82,341
- 41%: €82,342 – €177,106
- 45%: Over €177,106
Returns are due by May 31st (or June online). Miss the deadline, and you face a 10% penalty.
Capital Gains Tax (CGT):
- Standard CGT on property: 19%
- Social charges: 17.2% (or 7.5% in some cases)
- CGT reduces the longer you hold the property. After:
- 22 years: No CGT
- 30 years: No social charges
UK property gains are taxed in France with credit for any UK tax paid.
Tax on Investments
UK tax-free wrappers (like ISAs) are not recognised in France. All gains, interest, and dividends are taxable. You can opt for:
- The PFU flat tax (30%)
- Or marginal tax rates with specific deductions — but this requires careful planning.
Social Contributions (Charges Sociales)
Social charges fund France’s public healthcare and are applied to many types of income. Typical rates (2024–25):
- 9.2% (CSG)
- 0.5% (CRDS)
- 7.5% (Solidarity levy)
Total: 17.2% for most investment income and pensions.
UK pensioners with an S1 form may be exempt from some charges.
Inheritance and Gift Tax in France
French inheritance law includes “forced heirship”, meaning your children are legally entitled to a portion of your estate — regardless of your will.
Distribution rules:
- 1 child: 50% must go to them
- 2 children: 66.6% shared
- 3+ children: 75% divided between them
Allowances before tax:
- Spouse/partner: €80,724
- Each child: €100,000
- Grandchildren: €31,865
- Siblings: €15,932
- Nieces/Nephews: €7,967
Gifts over these amounts are taxed at 5%–45%. Marriage and birthday gifts may be tax-exempt if “reasonable.”
UK Pensions & Retirement in France
Defined Contribution (DC) Pensions
Why consider a transfer?
- Avoid buying low-yield annuities
- Greater currency flexibility
- Wider investment choices
- Better death benefits
- Easier consolidation
Defined Benefit (DB) Pensions
You get a guaranteed income for life, but it lacks flexibility. A transfer could be worthwhile if:
- You want access to lump sums
- You have reduced life expectancy
- Your scheme is at risk (e.g. under PPF)
Pension Transfer Options
- Keep it in the UK: Less flexible post-Brexit. May face access issues or high fees.
- QROPS: No UK income tax, offers lump sum flexibility, but may incur 25% tax outside the EEA.
- SIPPs: Lower cost, regulated by the FCA, flexible investment. Taxed in France.
Tax on UK Pensions in France
- Taxed as earned income.
- Lump sum options include:
- Flat 7.5% rate + social charges
- 4-year average rule
- Marginal rate
- State Pension: Reportable in France, exempt from social charges, but taxable.
Assurance Vie: The French Financial Powerhouse
Assurance vie is a uniquely French savings and investment product — and a must-have for expats who want to plan smartly for the future.
What is Assurance Vie?
It’s not just life insurance. It’s a tax-efficient investment wrapper that can hold cash, funds, shares, or real estate (via SCPI).
Why Expats Use It
- Tax-deferred growth: No tax while your money stays invested.
- Flexible access: No penalties for withdrawing (after a minimum term).
- Estate planning: Massive inheritance tax benefits.
Tax Advantages
- After 8 years, you get:
- €4,600 tax-free/year (or €9,200 for a couple)
- 7.5% tax on gains below €150K, plus 17.2% social charges
- Withdrawals before 8 years taxed at 12.8% + 17.2% (flat PFU)
- Growth is not taxed annually — only when withdrawn.
Inheritance Planning
- Contributions before age 70:
- €152,500 per beneficiary tax-free
- Then 20% up to €700K, 31.25% above that
- After age 70:
- Only €30,500 total tax-free
- Rest taxed via inheritance laws
Investment Options
You can invest in:
- Euro funds (capital protected)
- Global equities
- Bonds
- Real estate funds (SCPI)
- Structured products
Some providers also offer English-language contracts and multi-currency options — ideal for expats.
Final Thoughts
Living in France as a UK expat offers great lifestyle perks — but your financial planning must be sharp. Between differing tax rules, currency risk, and inheritance laws, it’s easy to make costly mistakes.
Top tips:
- Declare assets fully and early’
- Evaluate whether to transfer pensions to a SIPP or QROPS
- Consider opening an assurance vie early for tax and inheritance advantages
- Consult with a bilingual cross-border financial adviser
Need Personalised Advice?
We recommend speaking to a specialist in UK–France cross-border finance, especially regarding:
- QROPS/SIPP transfers
- Assurance vie structure
- Tax residency status
- French inheritance planning
Contact Us
Want personalised advice or a free consultation? We’re here to help.
Reach out to speak with an adviser or get connected with a local partner in your area.
