Retiring to France - Pensions in France
France is considered one of the best places in the world to retire to. People retiring to France give many reasons for this including affordable homes and the health system, rated the best by the World Health Organisation. Before moving to France you must firstly make arrangements so that you can receive pensions in France.
Those retiring to France must inform the Department of Work and pensions (DWP) of their intentions a few weeks before moving to France. The DWP will then begin making arrangements to pay you and your spouse´s pensions in France.
One major concern of those retiring to France is the liability of their pensions to tax.
Moving to France - Entitlement to pensions in France
If you are moving to France and work whilst there you will make social security contributions which entitles you to a state pension in France. In this instance you will need to contact the Caisse Nationale d´Assurance Vieillesse (CNAV) once you turn 60. You will then receive a pro-rata pension according to the time you have been making contributions in France. The CNAV can be contacted as follows:
CNAV
110-112 rue de Flandres
75951 Paris cedex 19
Tel: 0033 140 05 51 10
Details of how your contributions affect your UK pension can be obtained from the DWP at:
Department of Work and Pensions (DWP)
Overseas Branch EU Office
Longbenton
Newcastle upon Tyne
NE98 1YX
Tel: 0191 213 5000
I am retiring to France. Will my pensions in France be taxed
As a resident your worldwide income is subject to taxation, including pensions in France. Even tax-free lump sums in the UK become taxable if you are moving to France. An exception to this rule comes in the form of government service pensions which remain liable to UK tax even though it is tax-free in France. UK state pensions do not come into this category and, for those moving to France, are once more liable to tax but not in the UK.
This situation is not as grave as it may appear for those retiring to France and can often be circumvented.
Professional help to minimise tax on your pensions in France
Most people ignore pension planning until it is too late, believing there is little they can do to alter their situation. In fact, how you structure your pension can offer huge opportunities to save considerable amounts of tax, particularly if you are retiring to France.
From what you have seen on this page, moving to France might seem like it will cost you in tax during your retirement but things need not be that way. If your pensions in France and the UK are structured properly, with French legislation in mind, it is possible to reduce the amount subject to tax by between 30% and 70%.
You need specialist tax and investment advice on pensions if you are to maximise the benefits after retiring to France.
Blevin Franks (www.blevinsfranks.com) operates a UK and International tax advice centre for those retiring to France. The amount of your pension in France liable to tax could be massively reduced with specialist advice. This is crucial if you are to maximise your entitlements to make the most of moving to France in your retirement years.
