Expatriating at retirement is the culmination of a life project. Whether you are settling under the sun of Portugal or Spain, or moving to more distant lands such as Mauritius or Asia, this change of life entails a profound transformation of your financial ecosystem.
“Alexis, my pension is paid in France, but I live abroad. Where should I pay my taxes? And what becomes of the family home?”
This question, which recurs among my clients, underlines the need for a robust expatriate wealth strategy. Moving from resident to French non-resident status for tax purposes cannot be improvised: it requires an expatriate wealth audit to prevent your new-found freedom from turning into an administrative and tax maze.
At Balmont Conseil, we act as your augmented wealth engineer. We combine human expertise with technological precision to navigate international tax treaties and secure your future.
Retirement for expatriates: how to build up and optimise your pension?
The future international retiree’s first concern is the durability and amount of their income. Optimising income flows is at the heart of what we do.
Taxation and structuring Avoiding needless friction
Tax expatriation often offers an attractive tax environment, but it also exposes you to double taxation risks.
The taxation of non-residents
On leaving France, you become a non-resident for tax purposes. Your French-source retirement pensions generally remain taxable in France (withholding at source), unless the international tax laws provide otherwise. The taxation of non-residents can be optimised through an intelligent allocation of expatriate assets between French-source and foreign-source income.
Taxation of the PER for non-residents
The Retirement Savings Plan (PER) is a powerful tool. However, the taxation of the PER for non-residents varies according to the tax treaty. In some cases, a lump-sum withdrawal can be heavily taxed. We analyse your expatriate tax structuring to determine whether it is preferable to liquidate your PER before departure or to keep it as a capitalisation tool.
Expatriate investment strategy: the quest for portability
An expatriate retiree needs investments that follow them everywhere, without geographical constraints.
Luxembourg life assurance: the bedrock of your wealth
Luxembourg life assurance is often the benchmark solution for expatriate wealth management. Unlike French contracts, it offers:
- Tax neutrality: Luxembourg does not tax non-residents.
- Management in foreign currencies: to protect your purchasing power if your country of residence does not use the euro.
- The Security Triangle: asset protection unrivalled in Europe.
SCPI and international property investments
Property remains a safe haven for expatriates. However, directly managing a flat in Lyon from Lisbon can be a burden.
We often recommend SCPI investments (property funds). They allow a diversification of investments and, when they are European (Germany, Spain), they provide a partial tax exemption from French social levies (17.2%) for expatriates.
Estate planning and wealth protection
Wealth protection does not stop with the current generation. It includes the transmission strategy within the context of international successions.
The European Succession Regulation
For a retiree in Europe, Regulation 650/2012 is essential. It stipulates that the law of habitual residence applies to the succession. If you live in Spain, it is Spanish law that will govern your bank accounts and your properties. We help you use the Professio Juris to choose French law if it is more protective for your spouse and children.
Wealth-holding civil companies
Using wealth-holding civil companies (SCI) makes it possible to maintain an anchor in France while facilitating transmission. When properly structured, they avoid joint ownership and make it possible to anticipate the return of expatriates to France should this become necessary for health or family reasons.
FAQ: everything you need to know about wealth management for expatriate retirees
Conclusion: the essential “Stress Test” of your retirement
Succeeding in your retirement abroad requires more than a suitcase and a passport. It calls for a wealth architecture capable of withstanding changes in the international tax regime.
At Balmont Conseil, we do not merely manage figures; we protect your life project. Thanks to our AI-augmented wealth management adviser expertise, we secure every stage of your mobility.
Your international retirement deserves borderless expertise.
Request your personalised Expatriate Wealth Audit
Sources: French General Tax Code (Art. 4B, 155 B), Regulation (EU) No 650/2012, ANACOFI Member Handbook.