Insurance
Does my French health insurance cover me abroad?
Your French health insurance coverage abroad depends on several factors, including the length of your stay, the country of destination, and the type of coverage purchased.
As a general rule, a French health insurance plan supplements reimbursements made by the French Health Insurance (Social Security).
If your stay is short (less than 3 or 6 months depending on the organization):
Within the European Economic Area (EEA) and Switzerland: You must ask for the European Health Insurance Card (EHIC) Before your departure, this card allows you to receive coverage for your medical care according to the legislation and rates in effect in the country you are visiting. Reimbursement will then be based on the French Social Security system. Your supplemental health insurance will cover the remaining costs, within the limits of your policy.
Outside the EEA/Switzerland: If you pay upfront, you can claim reimbursement from your national health insurance fund upon your return, but this is often partial and based on French rates, which may be significantly lower than the actual costs abroad. In this case, your supplemental health insurance coverage may be very limited or nonexistent if the basic reimbursement rate is too low. This is why it is strongly recommended to take out private health insurance. travel insurance or specific international health insurance to ensure adequate coverage.
For long-term stays (more than 6 months, such as for studies or work):
- You may no longer be covered by the French national health insurance system. Your French supplementary health insurance will then no longer be applicable.
- It is essential to find out about health insurance coverage in the host country or to join the French Nationals Abroad Social Security Fund (CFE), which functions like a Social Security for expatriates, and to take out a supplementary health insurance plan adapted to the CFE.
In conclusion: Your French health insurance alone is generally insufficient for optimal coverage abroad, especially outside of Europe. It is essential to check the terms of your policy and take out travel or international health insurance if necessary.
"Civil / Family
Does a divorce abroad affect my French assets?
The impact of a divorce pronounced abroad on your French assets is a complex issue that depends mainly on three factors: the applicable private international law, the matrimonial property regime under which you were married, and the content of the divorce agreement.
Recognition in France of a foreign divorce: For a divorce to affect your assets in France, it must first be recognized by the French authorities. This is generally done through an exequatur procedure, or, more simply in some cases (such as divorces within the European Union), by verifying its compliance with French international public policy rules. If the divorce is recognized, it takes full effect, including the division of marital property or the separation of assets.
Matrimonial property regime and applicable law: The impact on assets (real estate, bank accounts, etc.) is governed by the matrimonial property regime. French private international law determines which law applies to this regime (often the law of the first marital domicile, unless a prenuptial agreement has been drawn up). If French law applies, the division of assets will follow the rules of the chosen regime (community of acquired property, separate property, etc.). If foreign law applies, it will be used, subject to its compatibility with French public policy, to determine each spouse's share of the assets.
Real estate located in France: Even if foreign law is recognized for the division of marital property, real estate (houses, apartments) located in France is subject to French land registration rules. Once recognized, the foreign divorce decree must be registered with the French land registry to formalize the transfer of ownership or the division of real estate.
In conclusion: Yes, a divorce abroad impacts your French assets once the judgment is officially recognized in France. The extent of this impact is strictly determined by the law applicable to your matrimonial property regime and the specific provisions of the divorce decree. It is crucial to consult a lawyer specializing in private international law to ensure the recognition and enforcement of the foreign judgment in France.
"Leaders
Can I manage my French SAS from abroad?
Managing your French simplified joint-stock company (SAS) from abroad is entirely possible, but it depends on several crucial factors, including the length of your stay abroad, your tax residency status, and the specific provisions of your company's articles of association. Generally, French law does not prohibit the president or managing director of an SAS from residing outside of France.
If your stay is short (frequent travel, limited periods):
From a legal and statutory perspective: You retain your ability to represent the company. It is essential that the articles of association of the SAS (simplified joint-stock company) do not contain any restrictive clause requiring the manager to reside in France. If the articles of association are silent on this point or provide for remote management, this is generally permitted.
From an administrative and operational standpoint: Ensure you have implemented tools (electronic signatures, powers of attorney, video conferencing) to maintain day-to-day operations, hold general meetings, and interact with French government agencies (tax authorities, social security contributions). The company's registered office and tax residence must remain in France.
For long-term stays (permanent residence or expatriation):
Tax residence of the manager: This is the most delicate point. If you transfer your tax residence outside of France, it does not affect the legal existence of the SAS (simplified joint-stock company) in France. However, it may impact your social security coverage and personal tax obligations. You will need to check the international tax treaties between France and your country of residence.
Social Security and Corporate Mandate: As a salaried executive of a simplified joint-stock company (SAS), your affiliation with the French social security system may or may not be maintained. It is essential to inquire about social security coverage in your host country. If you are no longer covered by the French system, your social protection will depend on your country of residence. Membership in the French Nationals Abroad Social Security Fund (CFE), or to a local scheme, may be necessary, as well as supplementary health insurance.
Risk of reclassification of the seat of effective management: If all strategic and operational decisions (the "effective management headquarters") are made from abroad, the tax authorities could attempt to reclassify the SAS as a tax resident of that country, which would have significant tax and administrative consequences. It is therefore crucial to demonstrate that substantial management (employees, premises, strategic decisions) remains in France.
In conclusion: Managing a French simplified joint-stock company (SAS) from abroad is possible, but requires careful planning and structuring. It is essential to review your articles of association, organize your remote management, and ensure you fully understand the tax and social security implications of your change of residence to avoid the company being reclassified.
How to set up a Dutreil Pact with heirs abroad?
The implementation of a Dutreil Pact with heirs residing abroad depends on several factors, including the nature of the assets transferred, the heirs' country of residence, and applicable international tax treaties. Generally, the Dutreil Pact, which allows for a partial exemption from inheritance tax (75%), primarily applies to French inheritance tax.
If the heirs are abroad:
Application of the Dutreil Pact: The scheme is a French tax advantage. It applies to the transfer of companies with eligible activities (industrial, commercial, artisanal, agricultural, or professional) and requires commitments from the heirs regarding the continued operation and management of the business, regardless of their place of residence. The existence of the Pact itself is not affected by the heirs' relocation abroad.
International taxation: The main issue lies in the right to tax.
- France: If the deceased (the transferor) was a French tax resident, France generally has the right to tax their entire estate. The Dutreil Pact can then be applied to reduce the taxable base.
- Country of residence of the heirs: The country of residence of the heirs may also have the right to tax the inherited assets (inheritance or gift tax). It is crucial to consult the applicable French-foreign tax treaty. These treaties aim to prevent double taxation. They will determine which country has the right to tax first and how the tax credit will be granted if both countries levy taxes.
For estates involving non-resident heirs:
- It is imperative It is important to inquire about the reporting procedures and tax obligations in the heir's host country. In some cases, the French exemption will not be recognized abroad.
- It is highly recommended to use a notary or a lawyer specializing in international inheritance law to ensure that the Dutreil Pact is properly structured and that the tax implications abroad are anticipated.
In conclusion: The Dutreil Pact can be implemented even with heirs abroad, but it only addresses the French tax implications. Overall optimization requires an analysis of tax treaties and local inheritance laws.
Gift
Can I give assets to my children who remained in France?
Yes, it is perfectly possible to give assets (money, real estate, securities, etc.) to your children who have remained in France, even if you yourself reside abroad.
However, the applicable procedure and taxation (gift tax) depend on several factors:
Your tax residence: If you are a French tax resident, the gifts you make are subject to French law, regardless of the residence of your children or the location of the assets (except for international agreements).
Your children's residence and the nature of the assets: If you are a tax resident abroad, the law applicable to gift tax varies:
- If your children reside in France and the donated assets are located in France, the gift is generally taxable in France.
- If the donated assets are located abroad, the situation may be governed by the legislation of the country where the assets are located or by bilateral tax treaties.
Tax breaks: French law provides significant tax allowances on gifts made to children (currently €100,000 per parent per child every 15 years). To ensure your children can benefit from these allowances, it is crucial to verify that the gift is indeed taxable in France.
It is strongly recommended to consult a French notary or tax advisor to optimize the transaction and ensure compliance with reporting obligations, especially if one of the parents or one of the assets is abroad.
"Data
Are my bank accounts abroad confidential?
The confidentiality of your foreign bank accounts depends heavily on two main factors: the laws of the country where the account is held and international agreements for the exchange of tax information. Historically, strict banking secrecy existed in some countries, but it has been significantly eroded in recent decades. Today, most jurisdictions adhere to transparency standards.
The main mechanism for the automatic exchange of information is the OECD Common Reporting Standard (CRS), known as Common Reporting Standard (CRS). Under the CRS, financial institutions in participating countries (more than 100 jurisdictions) are required to collect information on foreign account holders and transmit it annually to the tax authorities of their country of residence. For French residents, this means that information on their bank accounts held in CRS signatory countries is automatically transmitted to the French tax authorities.
In the United States, the Foreign Account Tax Compliance Act (FATCA) imposes similar obligations for US citizens, but it is also relevant to France because a bilateral agreement allows for the exchange of information.
In conclusion, while the foreign bank may not disclose your information to unauthorized third parties, confidentiality with respect to the tax authorities of your country of residence is no longer guaranteed. Your accounts are subject to tax reporting obligations, and information is generally exchanged automatically between tax authorities.
ESG
Does the collective DPE of 2026 impact my rental investments?
The collective Energy Performance Diagnosis (DPE), which will become mandatory for co-ownerships of more than 50 lots in 2024 and of 50 lots or less from 2026, will have a significant impact on your rental investments.
Firstly, the collective Energy Performance Certificate (EPC) aims to assess the energy performance of the building as a whole. If the building's EPC rating is poor (F or G), this could lead to mandatory energy renovation work for the condominium association. As a rental investor, you will have to contribute financially to this work, which will increase your expenses and potentially reduce your net profitability.
Secondly, French legislation provides for a gradual ban on renting out highly energy-inefficient properties (energy sieves). The ban on renting properties rated G has been in effect since 2025, and the ban on F-rated properties will follow. If your rental property is located in a building with a poor collective energy rating, you may be required to carry out individual renovations (insulation, heating) or vote as a co-owner for collective renovations to improve the building's energy rating and maintain your right to rent it out.
Finally, a favorable collective Energy Performance Certificate (EPC) rating (A, B, or C) will make your investment more attractive and secure in the face of future regulations, thus increasing the value of your property. Conversely, an unfavorable EPC rating risks depreciating the value of your property and increasing the risk of rental vacancies or difficulties in obtaining competitive rent. It is therefore crucial to anticipate the results of the collective EPC and any necessary work.
Taxation
Where am I considered a tax resident if I live abroad?
Determining your tax residence when you live abroad depends on criteria defined by French domestic law and, above all, by international tax treaties signed between France and your host country.
Under French domestic law, you remain considered a French tax resident if one of the following criteria is met:
The home: Your home (the place where you usually live with your family) remains in France. If you do not have a home, the criterion is the place of your main residence (more than 183 days during the calendar year).
Professional activity: You carry out a professional activity in France, whether salaried or not, as your main occupation.
The center of economic interests: France is the location of your main investments, the headquarters of your business, or the center of your wealth interests.
In case of a residency conflict (if both countries consider you a resident):
International tax treaties (methods for avoiding double taxation) take precedence over domestic law. They provide for "tie-breaker rules" to determine a single country of tax residence:
Permanent residential home: You are a resident of the country where you have a permanent home.
Center of vital interests: If you have a permanent home in both countries or neither, you are a resident of the country with which your personal and economic ties are closest.
Usual stay: If that is not enough, you are a resident of the country where you most usually stay.
Nationality : If all the previous criteria are ambiguous, you are a resident of the country of which you are a national.
Consequences :
If you are a French tax resident: You are taxable in France on all of your (worldwide) income.
If you are a non-resident for French tax purposes: You are taxable in France only on your French-source income (and potentially subject to specific withholding tax).
In conclusion: Simply moving abroad is not enough to change your tax residence. It is essential to examine the criteria defined by the applicable tax treaty or French domestic law. In case of doubt or for a long-term stay, it is strongly recommended to consult a professional specializing in international taxation.
Am I liable for the IFI (French wealth tax) as a non-resident?
Yes, as a non-resident for French tax purposes, you may be liable for the Real Estate Wealth Tax (IFI), but only on real estate assets and rights that you hold in France, whether held directly or indirectly (via shares in real estate companies for example).
Assets located outside France are excluded from your taxable base for the French Wealth Tax (IFI). The IFI applies if the net taxable value of your French real estate assets exceeds €1.3 million. The progressive IFI tax scale is applied to the portion of the net taxable value of your French real estate assets exceeding €800,000.
What is the rule of "tax liability"?
The rule of tax liability is a fundamental principle of tax law that determines whether a person (natural or legal) is subject to tax in a given jurisdiction.
For individuals, tax liability is generally determined by tax residency. If you are considered a tax resident of a country, you are generally taxed there on all your worldwide income (the principle of unlimited taxation). Residency criteria vary, but may include permanent home, center of economic interests, and principal place of residence.
For businesses (legal entities), tax liability is often based on the registered office or the place of effective management. A business is subject to corporate income tax in the country where it is considered resident.
In international situations, bilateral tax treaties (double taxation agreements) play a crucial role in defining the state in which a person is subject to tax in order to prevent the same income from being taxed twice.
What is the status of "Non-Domiciled Resident" (Nomad)?
The status of "Non-Domiciled Resident", often associated with "Digital Nomads" or expatriates in certain countries such as the United Kingdom, Ireland or Malta, is a tax regime that allows an individual to reside in a country without being considered as fiscally domiciled there for their income generated abroad (foreign income).
In practice, a person with "Non-Domiciled" status is generally taxed in their country of residence only on their local income and on foreign income that is actually "repatriated" or transferred to that country (the "remittance basis" taxation mechanism). Foreign income that is not repatriated remains exempt from tax in the country of residence.
This status is particularly relevant for professionals who work remotely, international entrepreneurs or people with significant assets abroad, offering them a significant tax advantage as long as they do not transfer their foreign funds to the country of residence.
The rules for obtaining and maintaining this status vary considerably from country to country and are often very complex, frequently requiring the intervention of a tax advisor. The "Digital Nomad" status often refers to this type of advantageous tax regime designed to attract mobile workers.
How is my average tax rate calculated in 2026?
The average tax rate is calculated by dividing the total amount of income tax you owe by your taxable income. This rate represents the portion of your income that is actually taxed.
In France, income tax is calculated using a progressive tax scale, which is divided into brackets. Each income bracket is subject to a specific tax rate (0%, 11%, 30%, 41%, 45%, etc.).
Here are the key steps in the calculation:
- Determination of net taxable income: We take into account all of your income (salaries, pensions, property income, etc.), after deduction of authorized expenses and allowances.
- Application of the family quotient: Net taxable income is divided by the number of tax shares in your household (depending on your marital status and the number of dependent children).
- Application of the progressive scale: The tax is calculated tranche by tranche on the income per share.
- Multiplication by the number of shares: The amount obtained is multiplied by the number of shares to obtain the total gross tax for the household.
- Taking into account tax reductions and credits: These tax benefits are deducted from the gross tax to obtain the net tax payable.
The average tax rate is therefore the final result of the net tax paid, divided by your total taxable income. It is always lower than the marginal tax rate (the highest rate applied to your highest income bracket).
Management
Can I manage my French assets remotely?
Yes, it is entirely possible to manage your French assets remotely, although this requires good organization and the use of digital tools. Here are the main points to consider:
Banking and financial management: Most French banks now offer comprehensive online services (transfers, account management, statement access, etc.). For investments (securities accounts, PEA, assurance-vie), brokerage platforms and online banks allow you to place orders and monitor your portfolios from anywhere.
Property management: If you own real estate, remote management may be more complex but feasible.
- Management mandate: The most common solution is to entrust the rental management or administration of your properties to a real estate agency or property manager. They will take care of everything (finding tenants, collecting rent, managing maintenance, tax returns).
- Digital platforms: For personal management, online tools can facilitate communication with tenants and monitoring of payments.
Legal and tax aspects: This is often the most delicate point.
- Taxation: If you are a tax resident abroad, you must still declare your French-source income (rent, dividends) in France through the non-resident tax office. The declaration is made entirely online. It is strongly recommended that you consult a tax advisor or accountant specializing in expatriation.
- Notarial deeds: For the sale or purchase of property, or for managing estates, it is often possible to sign authentic powers of attorney to be represented by a trusted person or a notary. An increasing number of notary offices offer remote electronic signature solutions.
Digital tools: Make sure you have secure communication tools (encrypted emails, video conferencing) and use power of attorney or mandate for procedures requiring a signature or physical presence.
In summary, while remote management is greatly facilitated by the digitization of financial and administrative services, it is advisable to surround oneself with professionals (banker, notary, tax advisor) to ensure that all legal and tax obligations are respected.
How can I manage my corporate mandates remotely?
Managing corporate mandates remotely has become commonplace, but it requires adherence to specific rules to ensure its legality and effectiveness. Here are the main aspects to consider:
Meeting and Voting Procedures:
- Remote Meetings (Video/Audio Conference): The company's articles of association or internal regulations must explicitly authorize these procedures for governing bodies (Board of Directors, Supervisory Board, etc.). The method of convening meetings must guarantee that all representatives are informed.
- Electronic Voting: Electronic postal voting is often possible for specific resolutions, provided that the system guarantees voter identification and vote confidentiality.
Security and Authenticity:
- Electronic Signature: The use of advanced or qualified electronic signatures is essential for signing minutes, decisions and legal documents remotely, thus ensuring the probative value of the acts.
- Secure Platforms: It is crucial to use secure communication and document sharing tools to protect confidential information exchanged during deliberations.
Applicable Legislation:
- Statutory Verification: Always check the company's statutes to ensure that remote management methods comply with internal regulations.
- Corporate Law: Comply with national laws governing corporate mandates (in France, the Commercial Code provides specific frameworks for holding these meetings and the validity of decisions taken remotely).
In summary, remote management is possible, but it relies on statutory authorization, the use of secure digital tools, and compliance with legal procedures to guarantee the validity of decisions taken.
Holding
Is it worthwhile to create a holding company to manage my assets?
The relevance of creating a holding company (parent company owning shares in other companies, the subsidiaries) to manage your assets depends on several objectives and your specific situation.
Main advantages:
Tax optimization: The parent-subsidiary regime generally allows a large part of the dividends received by the holding company (often 95% or more) to be exempt from corporation tax, thus reducing double taxation.
Centralized cash management: The holding company can centralize the cash flow of subsidiaries, allowing for better allocation of funds and the use of excess cash from one subsidiary to finance another.
Transmission of wealth: The holding company can facilitate the transfer of the business or assets to the next generation, often with tax advantages (for example, via the Dutreil pact in France).
Leverage effect: The holding company can borrow money to acquire shares. The interest on this loan is often tax-deductible, creating an attractive financial leverage effect.
Separation of risks: It allows for the separation of real estate or financial assets from the operational risk of subsidiaries.
Points to consider:
Cost and administrative complexity: The creation and management of a holding company involves costs (notary, accountant) and heavier administration.
Clear objective: The structure must be justified by a specific economic or asset-related objective, and not solely by the desire to evade taxes (abuse of law).
In conclusion, a holding company is a powerful tool, particularly relevant if you own several companies, are planning acquisitions, or have long-term tax optimization and wealth transfer objectives. It is essential to consult an expert (tax specialist, lawyer, or notary) to determine if this structure is suitable for your needs.
IFI
Why is the 30% tax allowance on the main residence being waived?
Your French health insurance coverage abroad depends on several factors, including the length of your stay, the country of destination, and the type of coverage purchased.
As a general rule, a French health insurance plan supplements reimbursements made by the French Health Insurance (Social Security).
If your stay is short (less than 3 or 6 months depending on the organization):
Within the European Economic Area (EEA) and Switzerland: You must ask for the European Health Insurance Card (EHIC) Before your departure, this card allows you to receive coverage for your medical care according to the legislation and rates in effect in the country you are visiting. Reimbursement will then be based on the French Social Security system. Your supplemental health insurance will cover the remaining costs, within the limits of your policy.
Outside the EEA/Switzerland: If you pay upfront, you can claim reimbursement from your national health insurance fund upon your return, but this is often partial and based on French rates, which may be significantly lower than the actual costs abroad. In this case, your supplemental health insurance coverage may be very limited or nonexistent if the basic reimbursement rate is too low. This is why it is strongly recommended to take out private health insurance. travel insurance or specific international health insurance to ensure adequate coverage.
For long-term stays (more than 6 months, such as for studies or work):
- You may no longer be covered by the French national health insurance system. Your French supplementary health insurance will then no longer be applicable.
- It is essential to find out about health insurance coverage in the host country or to join the French Nationals Abroad Social Security Fund (CFE), which functions like a Social Security for expatriates, and to take out a supplementary health insurance plan adapted to the CFE.
In conclusion: Your French health insurance alone is generally insufficient for optimal coverage abroad, especially outside of Europe. It is essential to check the terms of your policy and take out travel or international health insurance if necessary.
Real estate
How are my French rental incomes taxed?
The taxation of your French rental income depends on your place of tax residence.
If you are tax resident in France, Your rental income is added to your other income for the purpose of calculating income tax. You generally have a choice between two tax regimes:
- The micro-land regime: If your annual gross revenue does not exceed €15,000, you benefit from a standard allowance of 30 % for expenses. Tax is calculated on the remaining 70 %.
- The actual regime: It is mandatory if your gross revenue exceeds €15,000 or if you choose this option. This scheme allows you to deduct all actual expenses (renovations, loan interest, insurance, etc.).
If you are non-tax resident in France, Your rental income from French sources is taxable in France, in accordance with any international tax treaties that may exist between France and your country of residence. In the absence of a treaty, or if the treaty allows it, this income is subject in France to a minimum withholding tax of 20% (or 30% above a certain threshold). You can opt for taxation at the average rate if this is more advantageous.
Do I have to pay CSG/CRDS on my French rents?
The question of whether you are subject to the General Social Contribution (CSG) and the Contribution to the Repayment of the Social Debt (CRDS) on your French rental income depends mainly on whether or not you are affiliated to a social security scheme of a Member State of the European Union (EU), the European Economic Area (EEA) or Switzerland.
If you are a French tax resident or affiliated with the French Social Security system:
- Your rental income (rent) from properties located in France is subject to French social security contributions, including the CSG, CRDS, and solidarity levy. The overall applicable rate is the one in effect at the time the income is received.
If you are a tax resident outside of France (non-resident):
- Resident of an EU/EEA state or Switzerland: Following several rulings by the Court of Justice of the European Union (CJEU), individuals who are not affiliated with the mandatory French social security system but are subject to the social legislation of another EU/EEA member state or Switzerland are, in principle, more liable for CSG and CRDS on their investment income (including rental income). Only the solidarity levy remains due. To benefit from this exemption, you must provide the tax authorities with proof of your affiliation to the social security system of your country of residence.
- Resident of a third country (outside EU/EEA/Switzerland): French rental income of non-resident taxpayers outside the EU/EEA/Switzerland remains subject to all French social security contributions (CSG, CRDS and solidarity levy).
In conclusion: While non-residents of third countries continue to pay CSG/CRDS contributions, non-residents of the EU/EEA/Switzerland may be exempt from these two contributions on their French rental income if they can prove their affiliation with the social security system of their country of residence. It is essential to always check the applicable tax and social security legislation and, if necessary, consult a tax advisor to confirm your situation.
Can I get a loan in France while living abroad?
Obtaining a mortgage or consumer loan in France as an expatriate is possible, but the process is generally more complex and depends on several rigorous criteria established by French banks.
Key Factors for Granting Credit:
Type of residence (Primary Residence vs. Rental Investment):
- If the purchase is intended to become your primary residence upon a future return, banks may be more favorable.
- If it is a rental investment, the review of the application is more rigorous.
Financial and professional stability:
- Banks require proof of stable and sufficient income. Salaries paid in foreign currencies must be converted into euros and are subject to a discount to cover exchange rate risks.
- A permanent employment contract (CDI or local equivalent) is often mandatory, with a minimum seniority (often more than 6 months to 1 year).
- The maximum debt ratio remains fixed at approximately 35 %.
Country of residence and currency:
- Banks are more reassured if you reside in a country in the Eurozone or a country considered economically stable (United Kingdom, Switzerland, United States, etc.).
- Income from tax havens or countries with high geopolitical/economic risk is often rejected.
Personal contribution:
- A high down payment is almost always required for non-residents, often between 20 and 30 of the purchase price, to reassure the bank about the risk.
Practical details:
- Guarantees: Banks may require additional guarantees such as a pledge or mortgage. Borrower's insurance is mandatory and is often offered by insurers specializing in expatriates, as standard French insurance policies may apply surcharges or exclusions.
- Accounts in France: Having a well-managed bank account in France, often with the institution being approached, is an advantage.
- Specialized Broker: It is strongly recommended to use a broker specializing in expatriate cases, as they know which French banks accept this type of profile.
In conclusion, An expatriate can obtain a loan in France, but their application must be strong and their financial stability beyond question. The lending criteria are more restrictive than for a resident.
Selling your main residence right after leaving?
Selling your main residence just after leaving France raises important tax questions, particularly regarding the exemption of capital gains on real estate.
In France, capital gains realized on the sale of a primary residence are, in principle, entirely exempt from income tax and social security contributions. However, to benefit from this exemption, the property must be the seller's primary residence at the time of the sale.
If you sell after leaving and have become a tax resident of another country, the exemption may still apply under certain strict conditions, depending on the date and circumstances of the sale:
Immediate Sale or Sale within a Short Timeframe after Departure (General Case):
- The tax authorities generally accept that the exemption applies if the sale takes place in a "Normal" delivery time" (usually accepted as being one year) after moving out, provided that the accommodation has not been rented or made available to third parties during that period and that you have sought to sell it since your departure.
- Actively seeking a buyer (proof of advertisements, sales mandate) is crucial to justifying the exemption.
Specific Exemption for Non-Residents (Former Residents):
- Even if the normal deadline has passed, another exemption is possible for non-residents of France who sell a property that was their main residence in France. This exemption is subject to a ceiling (generally €150,000 of net taxable capital gain) and under specific conditions:
- You must have been a tax resident in France for at least two consecutive years at some point before the sale.
- The sale must take place no later than December 31st of the tenth year depending on the one from which you left France.
- The property must not have been made available to a third party (rental or loan) between the time it ceased to be your main residence and the sale.
Points that absolutely must be checked:
- Date of Transfer: The date of signing the authentic deed at the notary's office is decisive for the application of tax rules.
- Proof of Primary Residence: Make sure you can prove that the accommodation was indeed your main residence until you left (tax notice, bills, etc.).
In conclusion: It is possible to benefit from the capital gains tax exemption on your primary residence after you move out, but the conditions are strictly regulated by the time frame for the sale and the occupancy status of the property. If the time frame exceeds one year, you may have to resort to the specific exemption for non-residents, subject to a ceiling. It is strongly recommended that you consult a notary or a specialized tax advisor before the sale to ensure you qualify for the exemption.
Is the LMNP status under threat for expatriates in 2026?
The status of Non-Professional Furnished Rental Owner (LMNP) is a highly sought-after tax haven in France, including among expatriates. The question of its potential threat, particularly with a view to 2026, is a recurring one due to legislative changes.
Currently, this status allows for the generation of rental income with little or no tax due to the depreciation of the property and expenses. For expatriates, eligibility for LMNP status generally depends on their tax status in France and international tax treaties.
The "threat" for 2026 is mainly linked to two factors:
Legislation on short-term rentals (furnished tourist accommodation): Reform attempts aim to restrict tax advantages (notably the flat-rate allowance of 71% or 50%) for short-term rentals in high-demand areas. These measures, if passed and implemented, would impact landlords (LMNP) who rent out their properties seasonally, including expatriates.
The application of VAT to furnished rentals: Although not directly targeted by current reforms, the LMNP (furnished rental property) regime is sometimes criticized for its complexity and the possibility it offers of partially avoiding income tax. Future changes could call into question accounting depreciation or eligibility requirements.
For now, there is no law definitively adopted that would purely and simply abolish the LMNP status for expatriates in 2026. However, owners must remain vigilant regarding changes to the rules concerning revenue thresholds and short-term rental activities, which could significantly reduce the financial interest of the status.
In conclusion: The LMNP (furnished rental property) status is not "threatened with extinction" in 2026, but it is subject to constant legislative adjustments, primarily aimed at regulating short-term rentals. Expatriates should closely monitor these developments to ensure their investment remains compliant and tax-efficient.
"What is the new "Private Landlord" status?
The status of "Private Landlord" is generally linked to the French tax and legal context, particularly regarding real estate rentals. Although there is no official "new status" specifically called "Private Landlord" to replace existing schemes (such as the Micro-Foncier, the Réel, or specific statuses like Non-Professional Furnished Rental - LMNP), the term is often used to refer to an owner who rents out a property and manages this activity privately, as opposed to institutional bodies or companies.
Recent legislative developments mainly impact the obligations and tax advantages of owners: for example, the Climate and Resilience law has strengthened the requirements for energy performance (DPE), and tax reforms may modify the thresholds and conditions of application of the different schemes (such as the Micro-Foncier scheme).
To be precise about the "new status" you are referring to, it would be necessary to check whether a recent reform has created a separate legal category or whether the expression refers to specific changes in obligations, particularly in areas subject to rent control or at the level of rental platforms.
LMNP or SCPI: which is the best choice for a non-resident?
The choice between Non-Professional Furnished Rental (LMNP) and Real Estate Investment Companies (SCPI) for a non-resident largely depends on their investment objectives, risk tolerance and desire to be involved in management.
1. Non-Professional Furnished Rental (LMNP)
The LMNP (furnished rental property) status involves buying and renting out a furnished property. For a non-resident, this scheme offers advantages, particularly tax benefits:
- Direct management: The investor is the direct owner and manages the property (or delegates the management). This offers more control, but requires more involvement or rental management fees.
- Taxation: Rental income is taxed in France, often under the actual regime, allowing for the deduction of numerous expenses and the depreciation of the property (which reduces the taxable base, or even generates net income that is tax-free for years).
- Risks: Rental risks (vacancy, non-payment) and the need to manage the resale of the property.
2. Real Estate Investment Trusts (REITs)
Real estate investment trusts (REITs), often called "paper real estate", allow indirect investment in rental real estate (offices, shops, housing, etc.) through the acquisition of shares.
- Delegated management: The management of the real estate portfolio is entirely handled by the management company, which is ideal for a non-resident seeking simplicity and no management constraints.
- Risk pooling: The capital is spread across a large number of buildings and tenants, thus reducing the risk of vacancy or non-payment.
- Accessibility and (relative) liquidity: The investment is accessible with smaller amounts than the purchase of an entire property. Liquidity is guaranteed by the management company, but it is not immediate.
- Taxation: Income (from real estate or securities) is also taxed in France. The tax treatment will depend on the type of SCPI (income or capital growth).
Conclusion for non-residents:
- Opt for LMNP if you are looking for strong tax optimization potential through depreciation and if you are ready to manage or delegate the management of a physical asset.
- Opt for SCPIs if you favour simplicity, immediate diversification, risk pooling and a completely passive management.
Repatriation
Does the expatriate tax regime apply if I return to France?
The expatriate tax regime is an attractive tax scheme designed to facilitate the return to France of individuals who have been tax residents abroad. For this regime to apply upon your return to France, several conditions must be met. First, you must not have been a tax resident in France during the five calendar years preceding the year you take up your duties in France. Second, you must establish your tax residence in France from the date you take up your duties. Third, you must be recruited by a foreign company to work in France or be directly recruited by a company established in France. This regime allows, in particular, the exemption from income tax on a portion of your remuneration (the expatriation bonus) and certain foreign-source income. It is crucial to note that this regime generally applies for a limited period, typically until December 31st of the eighth year following the year you take up your duties. A detailed review of your personal and professional circumstances is essential to confirm your eligibility.
Engineering
Why create a holding company for personal wealth before moving abroad?
Creating a holding company before moving abroad is often a very advantageous strategy, mainly to optimize the management, transfer and taxation of your assets.
Tax optimization for expatriates (Exit Tax): One of the main advantages concerns the French Exit Tax. If you hold significant stakes in companies, setting up a holding company before leaving can create a barrier between you and your assets. While this doesn't eliminate the Exit Tax, it can simplify deferral mechanisms and potentially lead to more favorable tax regimes or even eventual exemption, depending on the legislation and tax treaties of the host country.
Centralized and flexible asset management: A holding company allows you to consolidate different types of assets (real estate, financial investments, cash) under a single entity. This simplifies management and decision-making, especially when you are located remotely. Furthermore, it offers great flexibility for reinvestment: capital gains realized by the holding company are not immediately taxed at the personal level and can be reinvested in other projects.
Facilitating the transfer (Inheritance): A holding company is an excellent tool for transferring assets. By using, in particular, a Société Civile (SC) or a Société Civile Patrimoniale (SCP), it is possible to divide the ownership of the shares (giving the bare ownership to the heirs and retaining the usufruct) while benefiting from tax allowances and a discount on the value of the transferred shares. Preparing this transfer before changing tax residence allows it to be done under the French tax regime, which is often more advantageous for this type of transaction.
Wealth protection: By interposing a legal structure, the holding company provides some protection for your personal assets against potential professional or financial risks, although this protection depends on the type of company chosen and the jurisdiction.
Adaptation to international tax treaties: Depending on the country you are moving to, the presence of a holding company can help you better integrate into bilateral tax treaties, thus optimizing income flows (dividends, interest) between France and your new country of residence.
Innovation
How can ALTA, our AI-powered wealth management solution, optimize my international retirement?
Artificial intelligence (AI) offers powerful tools to optimize international retirement by helping to navigate the complexity of tax systems, social security regulations, and cross-border investment options.
Financial and tax optimization:
- Personalized planning: AI algorithms can analyze financial data, retirement goals, intended country of residence, and exchange rates to model optimal retirement scenarios. They identify the best investment strategies tailored to the international context and risk appetite.
- Tax compliance: AI can track changes in bilateral tax treaties and local laws in real time. It helps minimize double taxation and ensure regulatory compliance, for example by suggesting the most advantageous location for holding certain assets or receiving pensions.
Management of social and health benefits:
- Social security and pensions: AI can aggregate and interpret the complex rules for coordinating social security schemes (e.g., between France and other countries), estimating the exact amount of pension rights acquired in different countries.
- International health coverage: Similar to the complexity of French health insurance abroad, AI can instantly compare hundreds of international health insurance plans, taking into account the cost of living, local medical providers and the requirements of the host country to offer the most cost-effective and comprehensive coverage.
Logistics and quality of life:
- Selection of retirement country: AI can assess objective criteria (cost of living, safety, climate, quality of health infrastructure) and subjective criteria (cultural proximity, leisure) to recommend destinations that maximize the purchasing power and overall well-being of the retiree.
- Administrative automation: AI-based systems can automate the management of cross-border documents and administrative procedures (bank transfers, declarations, renewal of visas or residence permits), greatly simplifying the lives of expatriate retirees.
In summary, AI acts as a high-performance advisor, capable of processing a massive amount of international information to make informed decisions that optimize assets, benefits, and quality of life in retirement abroad.
Investment
Why invest in SCPIs when you are an expatriate?
Investing in a French real estate investment trust (SCPI) offers several specific advantages for expatriates, particularly in terms of management, taxation and diversification.
Simplifying property management: One of the main challenges of real estate investment for an expatriate is remote management. Real estate investment trusts (REITs) are managed by licensed management companies that handle everything: property search and acquisition, rental management, maintenance, repairs, and rent collection. For a resident abroad, this eliminates the logistical and administrative burdens associated with managing a property directly.
Accessibility and reduced entry ticket: Investing in SCPIs (French real estate investment trusts) provides access to the commercial real estate market (offices, retail, healthcare, logistics) with investment amounts significantly lower than those required for direct purchase of physical property. This accessibility facilitates asset diversification for expatriates.
Risk diversification: A SCPI (Société Civile de Placement Immobilier) holds a diversified portfolio of real estate assets (by type and geographical area). This pooling of rental and real estate risks is a major advantage, offering greater security than buying a single apartment.
Potential tax advantages (depending on the country of residence):
Taxation in France: Rental income generated by SCPIs is, in principle, taxable in France according to the rules for property income.
Application of International Tax Treaties: To avoid double taxation, France has signed tax treaties with numerous countries. Depending on the treaty applicable to your country of residence, SCPI income may benefit from progressive tax relief mechanisms (tax credits) or be taxed solely in France, thus reducing the tax burden in your host country. It is crucial to consult an international tax specialist before investing.
Preparing for return or retirement: Investing in SCPIs allows you to maintain a wealth base and generate regular income in euros, which is an excellent strategy to prepare for a possible return to France or to supplement retirement income, while benefiting from the stability of French real estate.
In conclusion, SCPIs are often considered a "turnkey" investment solution particularly suited to the time and distance constraints of French people living outside of France.
Is it possible to invest in French private equity from abroad?
The possibility of investing in French private equity (PE) from abroad depends primarily on your status (individual or institutional), the investment vehicle chosen, and your country of residence. It is crucial to consider the regulatory and tax implications.
As a general rule:
For individual investors (Retail Investors): Direct access to French PE funds is often limited or requires high investment amounts.
- Through assurance-vie products or specific platforms: This is often the easiest way to access private savings plans, particularly through eligible unit-linked funds. However, the availability of these funds may be limited by the legislation of the country of residence.
- Regulation and KYC (Know Your Customer): French funds must comply with anti-money laundering and investor protection regulations, which can complicate membership from some countries, especially if they are not part of the European Economic Area (EEA).
For institutional or accredited investors (Sophisticated/Institutional Investors):
- Direct access to FPCI/FCPI/FIP funds: Investment in Professional Venture Capital Funds (FPCI), Innovation Investment Funds (FCPI) or Local Investment Funds (FIP) is possible.
- Tax treatment: You must absolutely inquire about the bilateral tax treaties between France and your country of residence to determine the taxation of capital gains and income generated. French tax advantages (such as those related to FCPI or FIP funds) are generally reserved for French tax residents.
In conclusion: Investing in French private equity from abroad is technically possible, but rarely as straightforward as for a French resident. It is essential to consult an international legal and tax advisor to ensure regulatory compliance and optimize the tax treatment of your investment.
"Legal
Do I need to amend my marriage contract before leaving?
The need to amend your marriage contract before leaving the country depends on several factors, including the length of your stay, the country of destination, and changes in your personal and professional circumstances.
In France, the marriage contract governs the chosen matrimonial property regime (separation of property, universal community property, etc.). When you move abroad, the rules of private international law come into play, particularly those concerning the law applicable to your matrimonial property regime.
Key Factors to Consider:
The European Regulation on Succession and Matrimonial Property Regimes (for EU countries):
- Since 2019, this regulation has harmonized the rules for determining the law applicable to married couples within the European Union.
- If you have a French marriage contract, it remains valid. However, if you move to another EU country for an extended period, the law of that new country may become the applicable law for your matrimonial property regime after a certain time (generally 10 years unless you choose otherwise, or immediately if you choose to do so).
- To avoid any uncertainty, it is strongly recommended to establish a choice of law agreement (often called civil partnership Or agreement) before a notary. This allows you to explicitly choose the law that will govern your matrimonial property regime (often French law, even if you reside abroad).
Countries outside the European Union:
- In these countries, there is no harmonization. The applicable law may be determined by international conventions, or, in their absence, by the rules of private international law of the host country.
- Some countries apply the law of the first common residence, others the law of the current residence. The rules can be complex and lead to conflicts of law.
- In this case, consulting a notary or an international lawyer is essential. They can advise you on whether to amend your contract to adapt it to local legal specificities or to strengthen the application of French law.
General Recommendation:
If you are going abroad for an extended period (several years), it is essential to consult your notary in France before your departure. This step allows you to:
- To verify the validity and implications of your current matrimonial property regime in the host country.
- To clarify the law applicable to your matrimonial property regime (and your estate) in order to protect your assets and those of your spouse.
- To establish, if necessary, notarial deeds or choice-of-law agreements to secure your legal situation.
A modification of the marriage contract is not always necessary, but a clarification of the applicable law is crucial to anticipate potential difficulties in the event of divorce or inheritance abroad.
What are the impacts of the 2026 Finance Law for non-residents?
The specific impacts of the 2026 Finance Law on French non-residents depend heavily on the final measures adopted, which may target various aspects of their taxation and administrative obligations. Generally, finance laws introduce adjustments that may concern:
Taxation of French-source income: Changes may occur regarding the rate or basis of taxation of property income, capital gains on real estate, investment income (dividends, interest) or pensions received in France by non-residents.
Social security contributions: The subjection of French investment income to social security contributions (CSG/CRDS) for non-residents affiliated with a social security system in another EEA member state or Switzerland is a frequently debated issue. Legislative changes may clarify or modify existing exemptions in light of European case law.
Real Estate Wealth Tax (IFI): Finance laws may adjust the thresholds, the methods of calculating the taxable value of assets or the conditions of exemption applicable to non-residents.
Reporting Obligations and the Fight Against Fraud: New measures can be introduced to enhance transparency and simplify reporting procedures for non-residents.
It is essential to consult the final version of the 2026 Finance Law and refer to the official administrative comments to understand the precise impacts.
Investments
Why choose Luxembourg assurance-vie?
Luxembourg assurance-vie is a highly valued wealth management tool, especially in an international context. Its appeal rests on several fundamental pillars that distinguish it from contracts taken out in other jurisdictions, including France.
1. The Security Triangle (Asset Protection)
Luxembourg has implemented a unique mechanism, the "Security Triangle," which guarantees maximum protection of policyholders' assets. This system legally separates the savers' assets from the assets of the insurance company itself. The funds are deposited in an authorized custodian bank, and the Insurance Commission (CAA), the Luxembourg supervisory authority, forms the third side of the triangle.
- In the event of the insurer's bankruptcy, the saver's assets are protected and cannot be used to settle the company's debts. This security is far superior to that offered by deposit insurance in many other countries.
2. The Freedom to Provide Services (FPS) Regime
Thanks to the European Freedom of Services Directive (FOD), residents of the European Economic Area (EEA) can take out insurance policies with Luxembourg insurers. This system allows for significant flexibility and adaptability of the policy to the insured's place of residence, particularly with regard to the currency of subscription and taxation.
3. The Tax Neutrality of the Contract
Luxembourg applies the principle of tax neutrality. This means that the taxation of the contract (capital gains, inheritance) is not determined by Luxembourg legislation, but by that of the insured's country of tax residence at the time of redemption or death.
- For a French resident, the contract will be taxed according to French assurance-vie regulations (allowances, social security contributions, etc.), which simplifies management while benefiting from the robustness of the Luxembourg legal framework.
4. Investment Diversity and Flexibility
Luxembourg contracts, particularly Dedicated Internal Funds (DIFs) and Specialized Insurance Funds (SIFs), offer a much broader and more sophisticated range of assets than standard French contracts. They provide access to:
- Unlisted financial instruments (private equity).
- Real estate funds.
- Vivid headlines.
This diversification is essential for large fortunes and sophisticated investors seeking to optimize returns while managing risk.
In conclusion: Choosing Luxembourg assurance-vie is a strategic move motivated by the search for better asset security, greater cross-border flexibility and investment diversification that few other financial centers can offer within the framework of a assurance-vie contract.
"Can I keep my PEA after I leave?
Maintaining a Share Savings Plan (PEA) after leaving France for abroad depends mainly on your tax residency status.
Generally, a PEA (Equity Savings Plan) is an investment scheme exclusively reserved for French tax residents. If you transfer your tax residence outside of France, you will no longer meet the eligibility requirements to hold one.
Here are the main rules:
Transfer of Tax Residence outside of France (except in specific cases) If you become a tax resident of another country, you must inform the institution holding your account. The tax authorities generally consider this non-residence to result in the closure of your PEA (equity savings plan). Gains realized up to the date of the transfer of tax residence are taxable.
Status of Posted Worker or Student Abroad In certain cases of temporary stays (such as short-term assignments or studies, similar to the rules of Social Security for short stays), if you maintain a "home" and economic interests in France, you could remain a French tax resident and thus keep your PEA (equity savings plan). However, this is a complex situation and must be reviewed on a case-by-case basis with a tax advisor.
Non-residents of the European Economic Area (EEA) : If you move to a country outside the EEA, the PEA must be closed.
In conclusion: Unlike some insurance policies or investment vehicles that can be held temporarily, the PEA (Equity Savings Plan) is strictly linked to tax residency in France. If you permanently leave France and become a tax resident abroad, you will most likely have to close it. It is essential to consult your bank or a tax advisor before your departure to determine the exact impact on your PEA.
Insurance
How to obtain a mortgage without being a resident?
Obtaining a mortgage without being a resident of the country where the property is located is possible, but it generally involves stricter conditions and specific procedures. Banks consider this type of borrower to be a higher risk. Here are the main factors and steps to consider:
- High personal contribution: Banks often require a significantly larger down payment than that required from residents (sometimes 30% to 50% of the purchase price, compared to 10% to 20%). This down payment must cover at least the notary and guarantee fees.
- Solvency and financial stability: You will need to demonstrate excellent financial health and job stability in your country of residence. Banks will assess your income, assets, and debt-to-income ratio (generally limited to 33% of your net income).
- Guarantees: The bank will require solid security on the property (mortgage or lender's lien) or a guarantee. In some countries, it may be necessary to provide additional guarantees or open a local bank account.
- Documentation: The loan application will be more extensive. You will need to provide official documents, translated and sometimes apostilled, including proof of income, tax returns from your country of residence, bank statements, and proof of address abroad.
- Interest rates and fees: Interest rates and processing fees may be higher for non-residents. It is crucial to compare offers from several institutions, including international banks or specialist brokers.
It is highly recommended to use a mortgage broker specializing in loans to non-residents to facilitate the process and obtain the best terms.
"Reporting
Do I need to declare my digital asset (Crypto) accounts?
Yes, in France, declaring your digital asset accounts (cryptocurrencies) is a legal obligation, primarily for tax purposes.
There are two main reporting obligations:
Declaration of accounts held abroad:
- If you hold open, used, or closed digital asset accounts with platforms or operators whose headquarters are located outside of France (e.g., Binance, Coinbase, Kraken, etc.), you must declare them annually.
- This declaration is made via the Cerfa form no. 3916-bis (or a specific attachment when filing the online declaration).
- You must declare all accounts, even if you haven't made any transactions or have no earnings to declare for the year in question. Failure to declare these accounts is punishable by fines.
Declaration of capital gains (income tax):
- If, during the tax year, you have made disposals (sales, exchanges for legal tender, or use to purchase goods or services) that have generated a capital gain, this capital gain is taxable.
- The applicable tax regime is generally the flat tax (Single Flat-Rate Levy - PFU) of 30 % (12.8 % of income tax and 17.2 % of social security contributions), unless the option for the progressive scale is chosen.
- The total amount of capital gains and losses must be calculated and reported on your income tax return (form 2042 C and specific annexes, such as the 2086 (for details of the operations).
Attention : Cryptocurrency swaps are considered taxable transactions only if your portfolio is worth less than €5,000 per year. Above that threshold, only exchanges for fiat currency or purchases trigger taxation.
It is imperative to keep an accurate record of all your transactions in order to be able to justify the calculation of your capital gains or losses to the tax authorities.
"Retirement
Can I continue to contribute to my French pension?
Yes, it is possible to continue contributing to your French pension even if you work or live abroad, in order to avoid gaps in your career and guarantee your future rights. The method depends on your situation:
If you are seconded by your French employer (short stay): Your employer continues to pay contributions in France. You remain affiliated to the French Social Security system (including pension) thanks to European regulations or bilateral agreements between France and the host country.
If you are an expatriate or self-employed worker abroad (long-term stay): You have several options to maintain your rights:
- Voluntary membership in the French Overseas Social Security Fund (CFE): The CFE offers voluntary old-age insurance that allows you to contribute to the French general pension scheme. Contributions are calculated based on your annual income and allow you to accrue pension credits towards your French retirement.
- Social Security Agreement: If France has signed a pension agreement with your country of residence, this agreement may provide for the coordination of your pension schemes. Periods of contributions made in your host country can be taken into account when calculating your French pension, but you will have to claim your pension rights in both countries.
- Buying back quarters of contributions: Upon your return to France, or later, you may under certain conditions buy back quarters for periods worked abroad if they were not covered by a French pension scheme or a bilateral agreement.
It is crucial to check your exact status and to inquire with the CFE or the Pension Insurance before your departure in order to choose the option best suited to your professional career.
What happens to my PER (Retirement Savings Plan) abroad?
The treatment of your French Retirement Savings Plan (PER) abroad depends primarily on your new tax status and the length of your stay outside France. As the PER is a French retirement savings product with specific tax advantages, its treatment may vary.
\\1. PER and Temporary Departure Abroad (secondment, short-term assignment):\
\-
\
- \Taxation: If you remain a French tax resident (for example, if you are seconded by a French company for less than 183 days), your PER (Retirement Savings Plan) continues to operate normally. Contributions remain deductible from your taxable income in France, and the savings accrue interest according to the usual PER rules. \
- \Payments: You can continue to make contributions to your PER. \
\2. PER and Expatriation (long-term stay, loss of French tax resident status):\
\-
\
- \Suspension of the tax advantage upon entry: Once you are no longer a French tax resident, deducting contributions from your taxable income in France is generally no longer possible. Continuing to contribute to a French PER (Retirement Savings Plan) may become less tax-efficient, as you no longer benefit from the withholding tax advantage. \
- \Contract management: The contract itself is not cancelled. It remains open and the savings continue to grow. You retain your acquired rights and the future payout options (annuity or lump sum) remain those provided for by French law. \
- \Taxation abroad: The tax treatment of savings or future withdrawals by your host country is governed by the bilateral tax treaty between France and that country. It isimperative\ to check this convention to avoid double taxation or unexpected taxation. In some countries, a PER (Retirement Savings Plan) could be considered a simple investment account and be subject to annual taxation on capital gains or income generated. \
\3. Cases of Early Release:\
\-
\
- The PER (Retirement Savings Plan) offers early withdrawal options, such as for the purchase of a primary residence (in France only) or in the event of unforeseen life events. Becoming a non-resident for French tax purposes does not change the conditions for early withdrawal related to unforeseen life events. \
In conclusion: Your French retirement savings plan (PER) doesn't "disappear" abroad, but its tax advantages upon entry diminish if you lose your French tax residency status. The priority is to consult the tax legislation of your host country and the relevant tax treaty to understand the impact on capital gains and future withdrawals. In many cases, it's advisable to maintain your PER without making new contributions and focus on local or international retirement savings plans suited to your new situation.
Strategy
What is the Exit Tax and how can you avoid it?
The Exit Tax is a French tax mechanism designed to tax the unrealized capital gains on certain securities and equity interests when a French tax resident transfers their tax residence outside of France. Its objective is to prevent capital gains generated in France from ever going untaxed by the French tax authorities after the taxpayer's departure.
Who is affected?
This applies to people who simultaneously meet two conditions:
- Having been a French tax resident for at least six of the last ten years preceding the transfer of residence.
- To hold, on the day of departure, either securities with a total value exceeding €800,000, or more than 50 % of the shares of a company.
How to avoid it (or postpone payment)?
In most cases, you do not pay the Exit Tax immediately. The law provides for mechanisms for tax deferral or relief:
- Automatic Payment Deferral: If you transfer your tax residence to a member state of the European Union (EU) or the European Economic Area (EEA) that has signed an administrative assistance agreement with France (including Liechtenstein), the deferral of payment is automatic. No guarantee is required, but annual reporting obligations (form 2074-ETS) must be met.
- Optional Payment Deferral: If you are moving to a country that is not an EU or EEA member state (or a country that does not have an administrative assistance agreement), you must apply for an optional deferral of payment. This application (using form 2074-ETD) must be submitted no later than 90 days before your move and may require you to provide guarantees (for example, a pledge of securities) to the tax authorities.
- Tax relief (Cancellation of tax): If, after benefiting from a deferral (automatic or optional), the taxpayer retains the securities and becomes a French tax resident again after a certain period, the tax may be reduced (cancelled). For example, for transfers occurring between 2014 and 2018, the tax was reduced after 15 years. This period is subject to adjustments according to successive finance laws.
In conclusion, if you are subject to Exit Tax, it is crucial to file the main tax return (form 2074-ETD) upon departure to declare unrealized capital gains. Depending on your country of destination, you may benefit from a deferral of payment, thus postponing the actual taxation until the date of the subsequent sale of the securities.
"How can I optimize my stock options when leaving the company?
Optimizing your stock options when leaving the company is a critical step that requires rigorous tax and financial planning. The specifics often depend on the type of options you hold (exercisable or unexercised, ESOs, Restricted Stock Units (RSUs), etc.) and the terms of your option agreement.
Key points to consider:
Exercise Window: When you leave your company (whether through resignation, dismissal, or retirement), the company sets a limited timeframe (often 30 to 90 days) during which you must exercise your acquired stock options. If you miss this window, the unexercised options are generally lost. It is therefore crucial to be aware of this deadline.
Tax Status of Options: Taxation can vary considerably.
- Acquisition capital gain: The gain made between the exercise price and the value of the share on the day of exercise is taxed at the time of exercise (according to local tax regimes and the type of option, such as the free share regime or BSPCE in France).
- Capital gain on disposal: The gain realized between the share price on the day of exercise and the final selling price is taxed upon resale of the shares.
Optimization strategies:
- Early Exercise: If your options allow, exercising them before the full vesting period is over can sometimes minimize future tax.
- "Sell-to-Cover" or "Cashless Exercise": These methods allow the exercise of options to be financed and the taxes withheld to be paid by immediately selling a portion of the acquired shares.
- Market considerations: Consider the company's current valuation and your future projections. Only trade if you are confident in the long-term value of the shares, or sell immediately if you prefer to lock in your profit and diversify your portfolio.
It is strongly recommended that you consult a tax advisor or a wealth manager specializing in stock options before your departure to determine the most advantageous strategy given your personal financial situation and current tax regulations.
"Succession
How can I protect my expatriate spouse in the event of my death?
Protecting your expatriate spouse in the event of your death requires careful planning and the use of specific instruments, as the French legal and tax framework does not always fully apply abroad. Here are the main options to consider:
Life Insurance (Personal Protection): It is the most direct tool to guarantee a capital sum or an annuity to your spouse in the event of your death.
Standard contracts: If you retain an affiliation with a French social or professional scheme (for example, via the CFE or a French employer), you can maintain or subscribe to a classic death insurance contract.
International contracts: These policies are specifically designed for expatriates, taking into account the complexities of tax residency and international inheritance laws. They are often more flexible in terms of geographical coverage and payment currency.
The French Overseas Social Security Fund (CFE): If you or your spouse are enrolled in the "Work Accident / Occupational Diseases" scheme, it includes benefits in the event of death. However, these benefits are often based on French rates and may not be sufficient to cover all needs, making supplementary death insurance essential.
Aspects of Succession and Wills: To secure the transfer of assets (including assurance-vie policies) to your spouse:
Applicable law: Since the 2015 European Succession Regulation, you can choose the law of which country will govern your estate (often the law of your nationality). It is crucial to draw up a will (local or international) designating the chosen law to avoid conflicts of law between your host country, France, and the country where your assets are located.
Matrimonial property regime: The choice of matrimonial property regime (universal community of property, separation of property, etc.) directly influences what your spouse will receive. It must be adapted to the country of residence.
Life Insurance: French assurance-vie is a tool for transferring assets outside of the estate. It allows you to freely designate beneficiaries, which can circumvent the mandatory inheritance rules (forced heirship) of some countries. However, it is essential to verify how this product is interpreted and taxed by your spouse's country of residence.
In conclusion, the best protection involves a combination of robust assurance-vie, a will adapted to international law, and a review of the marital property regime. It is essential to consult a notary or a wealth management advisor specializing in expatriation.
Can I pass on my PEA shares to my heirs?
Yes, it is possible to transfer the securities of a French Equity Savings Plan (PEA) to your heirs, but this results in the closure of the plan. Upon the account holder's death, the PEA is automatically closed. The securities held within it are not automatically sold; they are transferred from the PEA's securities account to the estate's ordinary securities account. The value of the securities on the date of death is included in the estate's assets and is subject to standard inheritance tax, after application of applicable allowances. The significant tax advantage of the PEA (capital gains tax exemption after five years) is not transferred. Consequently, the heirs receive the securities, but they no longer benefit from the PEA's advantageous tax treatment for these transferred securities.
Who will take care of my children if we die abroad?
The issue of child custody in the event of parental death abroad is complex and involves both private international law and family law in several jurisdictions. Here are the key elements to consider:
Applicable Laws: The country where the children habitually reside at the time of death, as well as the nationalities of the parents and children, play a major role. In principle, the courts of the children's country of habitual residence have jurisdiction to make custody (guardianship) decisions.
Testamentary Designation: If the parents have appointed a guardian in a will or notarized document (a "declaration of guardianship" or "appointment of guardian"), this appointment is the most important factor. However, it is essential to ensure that this document is valid and recognized under the laws of the children's country of habitual residence. It is recommended to consult a specialist lawyer to ensure that the appointments comply with international law.
Intervention by Local Authorities: In emergencies or in the absence of a clear guardian, social services and local courts in the country where the death occurs or where the children are temporarily located will intervene to ensure the immediate protection of minors. They will generally seek a close family member (grandparents, uncles/aunts) to take over, but the procedures can be lengthy and complex if the family resides in another country.
Role of Embassies and Consulates: The consular services of the children's country of nationality can provide assistance, including helping to coordinate with local authorities, facilitating repatriation, or intervening to ensure that children's rights are respected.
In conclusion: To ensure maximum protection for your children and respect for your wishes in the event of your death abroad, it is essential to have a clear guardian designation, formalized according to the relevant legal requirements (will or other recognized document), and to ensure that the designated relatives are informed and ready to intervene.
Transmission
Which law applies to my estate abroad?
The law applicable to your estate abroad is determined primarily by the European Succession Regulation (EU Regulation No. 650/2012), which entered into force in 2015 for the majority of European Union countries (with the notable exception of Denmark and Ireland).
General principle of the European Regulation: The law of the last habitual residence
The fundamental principle of this Regulation is that, unless you expressly choose otherwise, the law applicable to your entire estate (movable and immovable property, wherever it may be located) is that of the State where you had your usual residence at the time of your death.
If you reside in France, French law will apply to your estate, even if you own assets abroad (in an EU country participating in the Regulation). If you reside in another EU Member State, the law of that State will apply.
The importance of the choice of law (Professio Juris)
The Regulations offer you the possibility of deviating from this principle by making an express declaration called a "Professio Juris". You can choose as the law applicable to your entire estate the law of the State in which you own the Nationality at the time of this choice or at the time of your death.
Example : A French citizen habitually residing in Italy can choose by will or notarized declaration that his estate will be governed by French law, thus avoiding the automatic application of Italian law.
Case of countries outside the European Union
If you reside or own property in a country that is not an EU member (or not a signatory to the Regulation), the situation becomes more complex and depends on that country's own conflict of laws rules:
Buildings: Many countries, particularly outside Europe, continue to apply the traditional rule of lex situs, That is to say, the inheritance of real estate is governed by the law of the country where the property is located.
Harmonization: If the third country itself has conflict of laws rules similar to the EU Regulation (which is rare), or if a bilateral treaty exists with France, this can simplify the procedure.
Practical consequences
It is essential to verify the conditions under which the law you wish to have applied applies, especially if it differs from that of your place of residence. The choice of law must be made clearly, often in a will, and must comply with the formal requirements of the state in question.
In conclusion: Inheritance law depends primarily on your last habitual residence, unless you have expressly chosen to be governed by the law of your nationality. For assets with international status, consulting a notary or a lawyer specializing in private international law is essential.
Treasury
How can I optimize foreign exchange (FX) on my income?
Optimizing the exchange rate (FX) on your income, especially if you receive payments or transfer money in a foreign currency, is crucial to maximizing the value you receive. Here are several strategies to achieve this:
Choosing the right time for the conversion:
- Rate tracking: Use online tools to monitor exchange rate changes in real time.
- Limit orders: If your financial institution allows it, schedule an order to convert the money only when the rate reaches a predefined favorable level ('limit' order).
Use specialized transfer services:
- Traditional banks often apply large margins and high fixed fees.
- Opt for international money transfer platforms (such as Wise, Revolut, or other FX brokers) that offer interbank or very close exchange rates, with transparent and generally lower transaction fees.
Open multi-currency accounts:
- A multi-currency account allows you to receive and hold funds in the original currency without immediate conversion. This gives you the flexibility to wait for a more favorable exchange rate before converting to your primary currency.
Negotiate the fees with your financial institution:
- If you regularly transfer or receive large amounts of money, you may be able to negotiate better rates or reduced transaction fees with your bank or money transfer service provider.
Avoid dynamic currency conversions (DCC):
- When paying abroad or online, you are sometimes asked to pay in your home currency (DCC). Always decline this option, as the merchant or intermediary bank usually applies a very unfavorable exchange rate. Always choose to be charged in the local currency.
In summary: Optimization involves monitoring rates, using low-cost specialized services, and adopting flexible accounts to choose the ideal time for conversion.
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