Written by Erin Harding,
Last Modified: 17th June 2021

Our partner, Your Overseas Home, recently hosted their ‘Your move, your money’ webinar about moving to France. Speaking to experts from Smart Currency Exchange and the Spectrum IFA Group, they covered all matters financial, from pensions and inheritance to taxes.

We’ve collated the main information and put it into this handy article, but if you wish to watch the webinar in full, sign up here.

Should I speak to a financial advisor when I move?

It’s worth speaking to a financial advisor before, during and after your move to France to ensure that your money is in order. Before you make the move to France, you can use a financial advisor from the UK.

Don’t spend any money on your move abroad until you’ve read The Currency Guide to Emigration, free to download.

However, once you move, you must use a financial advisor who’s registered in the country you are residing in. The result of Brexit is that UK financial advisors cannot give advice to EU domiciled clients.

UK financial advisors cannot give advice to EU domiciled clients.

How do I claim my pension in France?

An overseas pension is likely to be more favourable than keeping your UK pension – there are generic ‘European’ pension options. However, if you move to France, your state pension will continue to grow as if it’s still in the UK. This was agreed as part of the Withdrawal Agreement.

If you have a SIPP (Self-Invested Personal Pensions) in the UK, you will not be able to contribute to this once you become non-resident.

For more information on your pension in France, take a look at our pensions page.

Can I work remotely for a UK employer in France?

Currently, if you work for a British employer in France, you need to either: be travelling back to the UK to carry out work, set yourself up on the French payroll system or work as self-employed and bill the company for your hours.

If you are working from home in France, you could be seen to have set up an ‘establishment’. So, if you’re generating profits from that establishment, they could arguably be taxed in France. This is a tricky area to navigate in terms of tax, so it’s wise to ensure that you do everything by the book.

Will I pay double tax in France?

There is a double taxation agreement between the UK and France. This means that, in most cases, you will receive tax credits, so you don’t pay double. This is still applicable after Brexit. Under this agreement, there are certain incomes that remain taxable only in the UK.

Will you pay capital gains tax on your UK property if you’ve bought a property in France? If you put your main property of residence up for sale in the UK prior to moving, and it then sells within a year or 18 months after your move to France, then you will not pay capital gains tax on it in France.

However, if that period extends longer than a year or 18 months, or if you rented that property out in the UK and it wasn’t your main residence, the property won’t be exempt from capital gains tax.

Download your comprehensive France Buying Guide for everything you need to know about purchasing a property.

Will I be taxed on my rental income in France?

If you live in France and rent out a property in the UK, your income is covered by the double tax treaty. Providing that you have no other French taxable income, you won’t pay any tax on your rental income in France, just the ordinary UK tax.

If you have some other income that is taxed in France, your rental income will be included in the computation of your taxable income.

Can I keep my UK bank account?

You can keep your UK bank account, but you will have to declare it to the tax authorities in France as an offshore account. Regarding investments, you could keep your saving accounts in the UK, however they will no longer be tax efficient. For example, UK ISAs will no longer be tax efficient when you go to France.

It is, therefore, wise to seek advice from a local financial advisor (in France) to discuss what investments you have and the tax implications going forward. France have an ISA equivalent, so your advisor can help you set this up.

What about inheritance?

Spouses or civil partners don’t pay inheritance tax, so it is possible to leave your inheritance to them. However, in France, children are priority heirs (not spouses) – this is different to the UK so it’s important to be aware of this.

In France, the more distant the family relation, the higher the tax rate. If you choose to leave the property to someone outside of your family or a distant relation, it’s likely that you will be hit by a 60% inheritance tax.

If a family member passes away in the UK whilst you are in France and you are due to receive an inheritance from them, all inheritance tax is paid in the UK.

Why not spread the cost and buy with family? Read our guide, Buying with Family.

How to make a safe international payment

If you’re looking to buy a home in France, it’s worth remembering that transferring large sums of money overseas comes with risk. The currency markets can be unpredictable at best, so protecting your property buying budget from currency fluctuations is crucial.

If you’re looking to buy this year or in the near future, it’s worth speaking to a currency specialist, like Smart Currency Exchange. They’ll put measures in place to ensure that your money is transferred safely. Learn more in the Property Buyer’s Guide to Currency.

Buying a House in France Guide.

Buying a property in France is extremely exciting, but it can be nerve-wracking: in what ways is the process different to the UK, how do you cope with the language difference, what fees should you expect and just who is the notaire? That’s why we’ve put together our France Buying Guide, to help you through the process, step by step.

Written by experts, it covers every stage of buying, from viewing to contracts and fees. Get your copy of the French Property Guide by simply filling in the form below.

  Impact of Brexit
  Find your property
  Ask the right questions
  Avoid losing money
  Avoid the legal pitfalls
  Move in successfully

Download your free guide to buying in France

  • We handle your data with care and only ever as outlined in our Privacy Policy.

  • This field is for validation purposes and should be left unchanged.

Pin It on Pinterest

Share This