France is still the retirement dream for many people and although Brexit has made it a little more difficult and marginally more expensive to move to France in retirement, it is by no means impossible.
Despite Brexit, the French government has a lower requirement for income than most other European countries. Moreover, UK pension rights were retained in the Withdrawal Agreement which means that even after Brexit, a British retiree can carry on receiving their British state pension which will continue to increase each year in line with the rate paid in the UK. In addition, British state pensions and private pensions can still be paid into EU bank accounts.
Be aware, however, that any private pension lump sum payable on retirement is taxable in France unlike in the UK where the first 25% is tax free. In addition, Brits applying for a retirement long-stay visa to France are required to prove that they have income or funds equivalent to the French minimum wage which, in 2022, is €19,237 a year before deductions for tax and social contributions; equivalent to a monthly net income of €1,266. This applies to individuals, or couples and the income can be from any “resource”, which includes any type of accessible capital.
Most British pensioners pay tax in the UK, but you should still make an annual tax declaration in France and declare your pension income. Under the double taxation agreement between the two countries, you will not be charged twice, and the French taxman will assess your tax liability accordingly.
Although straight-forward, it is always worth taking financial advice when retiring to France just as it is when searching for the right property.
If you would like help with your move to France, please get in touch: nadia@foothillsoffrance.com
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