Planning your retirement abroad: taxation and assets

TL;DR:

• Retirement planning while living abroad requires a thorough prior audit of rights and structuring of assets.
• The taxation of pensions depends on their origin (public or private) and the country of residence, with specific agreements.
• Annual monitoring and a suitable wealth management strategy are essential to secure and optimize your expatriate retirement.

Between double taxation, complex administrative procedures, and the need to protect assets, planning for retirement outside of France is often a real headache, even for wealthy families. However, with the right approach, it's entirely possible to optimize your tax situation, protect your assets, and choose a host country that aligns with your life goals. This guide is for expatriates and affluent families who want to structure their retirement abroad smoothly and effectively. You'll find practical answers on tax treaties, attractive countries, suitable wealth management tools, and the mistakes to absolutely avoid to prevent unpleasant surprises when retirement day arrives.

Key Points

Essential prerequisites before considering retirement abroad

Now that you understand the stakes, start with a solid foundation. Too many expats only discover too late that their pension rights are fragmented across multiple countries, poorly consolidated, or that their assets aren't optimally structured for the transition to retirement. Planning ahead systematically makes all the difference.

Audit your pension rights first and foremost

The first step is to conduct a full audit of your pension entitlements, ideally between five and ten years before your intended retirement date. The Centre for European and International Social Security Liaison (CLEISS) can identify your contribution periods in various European Union member states. For non-EU countries, bilateral social security agreements determine the rules for aggregating quarters of contributions. This retirement audit methodology It also includes analysis of the country of residence, structuring of assets, and anticipation of succession issues.

Choose your country of residence wisely.

Choosing a country for retirement is not simply a matter of comparing tax rates. It's essential to analyze the tax treaty between the country and France, the quality of the healthcare system, the cost of living, political and legal stability, and residency requirements. France has signed over 120 bilateral tax treaties, offering a wide range of options. To structure this analysis rigorously, consult our international wealth guide.

Structuring assets before departure

Certain tools must be put in place before leaving France, as access to them or their tax advantages are limited or eliminated once you are a non-resident. Among the essential actions to take are:

• Open a Retirement Savings Plan (PER) and make contributions as long as you are a French tax resident, in order to benefit from the tax deductibility.
• Taking out a Luxembourg assurance-vie policy is particularly flexible and protective for expatriates in terms of legal framework and multi-currency management.
• Building a solid tax residency case, known as a "substantive" case, means demonstrating a real presence and effective links with the host country.
• Anticipate international inheritance and succession by checking the applicable rules in the country concerned.
• Prepare your departure abroad on the administrative and tax level

Pro tip: the earlier you plan, the more opportunities you have to optimize your finances. Five to ten years before your actual retirement is the ideal time to restructure your assets, choose your tax-efficient investment vehicles, and finalize your plans for living abroad with a specialist advisor.

The preparation of a tax residency application deserves particular attention. Tax authorities, especially French ones, carefully examine ties maintained with France: home address, center of economic interests, frequent visits. A disputed tax residency can lead to unwanted double taxation and costly tax adjustments.

How are retirement pensions taxed abroad?

With this information in hand, let's focus on the central question: where and how will your pensions be taxed?

The answer depends first on the nature of the pension. OECD rules distinguish between two main cases.’OECD Article 18 This applies to private pensions: they are generally taxed in the beneficiary's country of residence. Article 19, however, governs public pensions paid by the State or local authorities: these remain taxable in France, unless the retiree holds exclusively the nationality of the host country.

«"The place of taxation depends on the type of pension and the agreements signed between countries. The same situation can lead to very different tax treatments depending on whether the pension is from a private or public source."»

Withholding tax: what you need to know

In practice, France applies a withholding tax on pensions paid to non-residents, with the rate varying between 0 and 30% depending on the annual amount received and the terms of the applicable tax treaty. This withholding is final in some cases, or simply an advance payment creditable against the tax due locally in others.

There taxation by country can evolve rapidly: countries like Portugal have already reformed their tax regime for foreign pensioners, which illustrates the importance of active monitoring.

Key administrative steps to follow

To avoid any issues with your pension payments once you are abroad, here are some steps you should not overlook:

1. Inform your pension fund of your departure and provide your new address abroad.
2. Submit a certificate of life each year, a document attesting that you are alive and residing at the declared address.
3. Complete the French tax return form 2042-NR (non-resident tax return)
4. Confirm your situation with regard to the international retirement security and, if necessary, join the Caisse des Français de l'Étranger (CFE) to maintain health insurance coverage
5. Keep your proof of tax residence to prevent any dispute from the French tax authorities.

The rules relating to the taxation of non-residents In France, the rules are precise and technical. Any error in the declaration can lead to effective double taxation, even when the law theoretically prohibits it.

Which countries should I choose to optimize my taxes and wealth in retirement?

Having understood the regulatory aspects, the question of choosing the optimal country for expatriation remains.

Several destinations stand out for their attractive tax regimes in 2026. Favorable tax regimes vary significantly: Greece offers a flat rate of 7% for 10 to 15 years for foreign retirees who transfer their tax residence there. Italy offers a similar mechanism at 7%, but reserved for municipalities with fewer than 20,000 inhabitants. Morocco grants an allowance of 80% on repatriated foreign pensions. Portugal, after the end of the NHR regime, maintains advantages on inheritance tax with a rate of 0% between parents and children.

The criteria to prioritize when choosing your country

Beyond the purely tax-related criteria, here are the points to evaluate before making any decision:

• Regulatory stability An advantageous tax regime can be abolished or modified along the way, as demonstrated by Portugal with its NHR status.
• Quality of the healthcare system : a critical point as one gets older
• Legal framework for succession Some countries do not recognize French assurance-vie or property division mechanisms.
• Language and integration Isolation is a real risk, especially if the children remain in France.
• Safety and quality of life Living in a country solely to save on taxes without feeling comfortable there is a common mistake.

L'’Luxembourg assurance-vie In this context, it represents a particularly powerful tool. Tax-neutral in most countries of residence, it allows you to hold assets in several currencies, freely designate beneficiaries, and move from one country to another without reconstituting your entire estate.

Pro tip: Never choose a retirement country solely based on its tax rate. The overall balance between taxation, healthcare, inheritance, family life, and legal stability is what truly determines the success of a wealth relocation abroad. See also our analyses on...’tax optimization for expatriates to refine your decision.

Structuring and managing retirement assets in expatriate settings

Once the country is chosen and the tax aspects are under control, the structuring of your assets becomes the central pillar of securing your international retirement.

The reality of an expatriate retiree is that of a permanent wealth mobility. You might move to a different country, your family situation might change, or you might face an unexpected local tax reform. Therefore, your assets should be held in flexible, portable, and tax-neutral vehicles across as many jurisdictions as possible.

The best tools for structuring your assets

1. Luxembourg assurance-vie This is the benchmark contract for wealthy expatriates. It offers tax neutrality in most countries, multi-currency management, asset protection through the Luxembourg super-privilege, and great flexibility in transferring assets.
2. Capitalization contracts Less well-known, they offer management similar to assurance-vie with specific advantages in terms of inheritance and gifts.
3. International real estate : to be held through appropriate structures depending on the country (SCI, trust, holding company), to avoid the pitfalls of double taxation on rental income and capital gains
4. THE retirement savings plan Useful before expatriation, but to be handled with care once you are a non-resident. The tax advantages linked to the payments disappear as soon as you are no longer taxed in France on your earned income.

Structuring options via international assurance-vie are clearly preferable to the post-expatriation PER, the latter losing its flexibility and tax relevance once you have left French territory.

Common mistakes to avoid

Multi-currency management is often underestimated. A retiree who receives their pension in euros but lives in a country with a local currency faces a constant exchange rate risk that impacts their actual standard of living. This should be addressed through multi-currency accounts or appropriate hedging strategies.

Social security contributions (CSG/CRDS) on French-sourced investment income remain due, even for non-residents, except in certain cases covered by social security agreements. This point is often a source of misunderstanding. Accurately verify your situation with our service.’international mobility insurance.

Pro tip: Think of your assets as a living system. The balance between security (guaranteed capital, liquidity) and flexibility (diversified investments, international portability) must evolve with your age, country of residence, and family plans. An annual wealth review with your advisor is essential.

What most advice forgets about retirement abroad

It's easy to focus on a country's tax rate and build an entire strategy around that single criterion. However, this is a narrow view that exposes expatriate retirees to often painful domino effects.

Let's take a concrete example: a French couple moves in in Portugal to benefit from favorable tax treatment. Three years later, one of the spouses dies. The surviving spouse wishes to return to France to be closer to their children. This return triggers a exit tax on unrealized capital gains, a tax reassessment of assets, and a questioning of the initial structure. None of this was illegal, but nothing had been anticipated.

There international strategy for expatriates Effectiveness isn't simply a matter of making a sound initial decision. It requires continuous regulatory monitoring, as tax laws are constantly evolving. Portugal, Greece, and Italy have all modified their systems in recent years. It also presupposes coordination between the tax, inheritance, family, and medical aspects of your situation.

Personally, Alexis Sagnier, founder of Balmont Conseil, emphasizes this point: «Clients who successfully retire abroad are those who have implemented annual monitoring of their wealth management strategy, not just those who chose their country wisely from the outset.» The reality of expatriate retirement is dynamic, not static. Your assets, your family, and regulations are constantly evolving. Your strategy must evolve with them.

Benefit from tailored support for your wealth relocation abroad.

If you wish to go further and secure your entire project, seek professional guidance. Planning a retirement abroad requires combined expertise in international taxation., wealth engineering, Inheritance law and multi-currency asset management. This is precisely what Balmont Conseil offers.

Our firm will carry out for you a asset audit We offer a comprehensive, personalized retirement simulation and an analysis of the tax treaties applicable to your situation. With a completely objective approach and full banking transparency, we select the best structures available on the market. Whether you are in the planning stages or already living abroad, our team provides ongoing support to secure your future. expatriate retirement support and optimize every aspect of your assets. Discover our offer of’tailored wealth optimization and schedule an appointment for an initial confidential discussion.

Frequently asked questions about retirement abroad

What administrative steps are necessary to receive a French pension from abroad?

You must provide a life certificate each year, complete form 2042-NR, and, depending on your situation, join the CFE to maintain health insurance coverage abroad. These obligations are annual, and failure to comply may result in the suspension of your pension payments.

What is the difference between the taxation of public and private pensions when one moves abroad?

Private pensions are generally taxed in the country of residence (OECD Article 18), while public pensions remain taxed by France under Article 19, unless you have only the nationality of the host country.

Which countries offer the best tax advantages for an expatriate retirement?

Greece, Italy, Morocco and Portugal offer particularly advantageous schemes depending on the type of retirement, but eligibility conditions vary and these schemes may change, which requires a case-by-case analysis.

Is the retirement savings plan (PER) suitable after retirement?

It is strongly advised to open it before expatriation: once you are a non-resident for tax purposes, the PER loses most of its tax advantages and flexibility, making it significantly less relevant than international assurance-vie.

Recommendation

• Expatriates and International – Balmont Consulting
• International Wealth Management: A 2026 Guide for Expatriates – Balmont Conseil
• Wealth management for expatriate retirees: securing and optimizing their "Indian summer" abroad – Balmont Conseil
• Wealth relocation abroad – Balmont Conseil