Retiring to France is a dream for many, however, for retired expats, careful planning is essential to make the most of this life-changing move. Here are five key considerations to help you navigate the transition to France smoothly.
Receiving your foreign pension in France
Managing your pension is a crucial step when retiring in France. Most retirees rely on a combination of state and private pensions, and how you access these funds matters.
You can choose to have your pension paid directly into a French bank account or keep it in an overseas account to benefit from favourable currency exchange rates. Tax efficiency is another factor to consider. France offers advantageous tax rates for lump-sum pension withdrawals, making reinvestment into tax-efficient savings plans, such as an Assurance Vie, an appealing option. Consulting a financial advisor who understands French tax regulations can help you optimise your pension strategy.
Health insurance and coverage
France's healthcare system is highly regarded, but it's not free, and retirees must plan for their healthcare needs carefully. Legal residents, including retirees, are required to register with l'Assurance Maladie, France's state heath service, after living in the country for at least three months. This registration grands access to public healthcare, but the process can take time, so private health insurance is essential during the waiting period.
For retirees from the EU/EEA or Switzerland, the S1 form may simplify the process, allowing them to register for state healthcare based on foreign pensions. However, this options isn't available to US citizens, although bilateral agreements between the US and France may still allow for Social Security benefits while residing in France. Retirees without an S1 form will need to provide a private health insurance, which must cover full requested long stay visa, up to 1 year.
In addition, a mutuelle (top-up insurance) is not mandatory for retirees, but it is highly recommended. While not private insurance, a mutuelle covers expenses that the state system doesn't such as co-payments or higher-tier treatments. These policies vary in cost and coverage levels, making it essential to choose one that aligns with your health needs and budget.
If you are uncertain about which plan is best for your needs, consider booking a consultation call with our English-speaking insurance brokers. They can help you find the right coverage that aligns with your needs. Additionally, you can explore options through Fab French insurance medical policies to ensure you meet all necessary requirements.
Understanding French inheritance laws
French inheritance laws differ significantly from those in other countries. Spouses are generally exempt from inheritance tax, but all other heirs are taxed on worldwide assets. Additionally, French law imposes forces heirship rules, meaning a portion of your estate is automatically allocated to your children.
Drafting a French compliant will and understanding the tax implications for your heirs is vital. Working with a French notary or inheritance specialist can help ensure your estate is distributed according to your wishes while minimising tax liabilities.
Choosing the right retirement location
Where you choose to settle in France will shape your retirement experience. Retired expats often prefer regions with affordable living costs, good amenities, and a welcoming community.
Popular choices include the Dordogne and southern France, such as the Languedoc province, known for their warm climates and picturesque surroundings. If you prefer city living, cities like Lyon and Bordeaux offer cultural attractions and excellent connectivity. Research property prices and living costs carefully to ensure your chosen location aligns with your budget and lifestyle preferences. You can review cost of living per city on the website Numbeo.
Navigating retirement visas
Most expats retiring to France choose the Visa de Long Séjour valant Titre de Séjour – Visiteur (VLS-Visiteur). To qualify for this visa, you must prove you have an income at least as high as France’s minimum working wage (SMIC), which as of November 1st 2024, is about 1,426,30 € net per month. This income can come from pensions, rental income, or other investments, however income from active employment is not eligible.
Applying for the VLS-Visiteur must be done within 90 days before your intended arrival in France. Ensure you allow at least two months for the application to be processed, as it requires supporting documentation such as proof of income, private health insurance, and a signed commitment not to engage in work while in France.
For retirees who wish to spend less time in France, a visa is unnecessary for stays up to 90 days in a 180-day period within the Schengen Zone. However, this limitation may not align with long-term retirement plans, making the VLS-Visiteur essential for those planning to settle permanently and enjoy the full benefits of living in France.
Planning to move to France and need expert advice for make your move stress-free? Book your relocation consultation today. Our expert will answer all your questions and help you avoid any headaches or pitfalls.
To wrap it all up
Retiring in France offers an unparalleled lifestyle, but preparation is key to navigating the practicalities. From managing pensions to understanding healthcare and inheritance laws, these considerations will help ensure a smooth and rewarding retirement. Proper planning and professional advice will allow you to embrace the French lifestyle fully.