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France Tax Guide
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France Tax Guide
Relocating to France? Be sure your financial plans travel with you.
France Tax Guide for UK Expats
France offers a rich lifestyle, a strong healthcare system, and easy access to Europe—but with that comes a set of tax rules that differ significantly from the UK. If you’re planning to move across the Channel, this guide is an essential first step in ensuring you make the most of your finances.
Our France Tax Guide for UK Expats walks you through the key considerations for residency, income, pensions, inheritance, and wealth tax. Understanding how both UK and French systems apply to you is vital in avoiding double taxation and missed planning opportunities.
Download it now and take control of your cross-border tax situation.
What’s Inside?
- Tax Residency Rules – Understand how France determines residency and why your UK ties still matter.
- Income and Investment Tax – Learn what happens to ISAs, pensions, and UK property income once you become French resident.
- Property & Capital Gains – From rental income to selling a UK home, see how gains and reporting obligations change post-move.
- Social Charges – Discover how these hidden taxes can affect investment, pension, and rental income.
- Succession Law & Inheritance Tax – Understand French “forced heirship” rules, inheritance tax traps, and how to plan around them.
- Wealth Tax and Real Estate Charges – Get the facts on how your global assets could be taxed annually—sometimes without you realising.
Why Download This Guide?
Because tax mistakes can be costly, and the French system is not always intuitive—especially for Brits. This guide helps you plan ahead, stay compliant, and reduce unnecessary tax exposure by getting informed before (and after) your move.
Who Is This Guide For?
- UK citizens planning to move to France
- Existing residents of France with UK ties or income
- Property owners with cross-border tax exposure
- Individuals seeking tax-efficient estate and wealth planning
FAQs
Pension income from UK funds is typically subject to taxation only in France. It is taxed at the income tax scale rates after a 10% deduction, up to a maximum of €4,123 per couple. The current income tax rates range from 11% for income over €10,778 to 45% for income over €168,994. Additionally, France applies social charges at a rate of 9.1% (reduced to 7.4% for low pension income), although individuals holding Form S1 are exempt from these charges.
On the other hand, income derived from UK government service pensions remains taxable in the UK and not in France. However, you are still required to include it on your French income tax return, but you receive a credit equal to the French tax and social charges incurred.
Many British individuals relocating to France often encounter a common tax pitfall. Under UK rules, you are allowed to withdraw a tax-free “pension commencement lump sum” of 25%. However, taking this lump sum after becoming a resident in France becomes subject to French income tax, which can reach up to 45%, along with potential social charges. Being aware of this potential tax liability is crucial if you have not yet left the UK.
On the other hand, if you are contemplating taking your entire pension as a lump sum, there are certain circumstances where you may qualify for a fixed 7.5% income tax rate in France. This presents opportunities to reinvest the capital into a tax-efficient arrangement within France and potentially reduce your overall tax burden. Nonetheless, it is essential to carefully assess whether such a course of action would be suitable and secure for your specific situation.
Social charges in France are levied in addition to income tax, and they now generate more revenue than income tax. Although they are separate from social security contributions, they play a role in funding France’s healthcare and social services.
For investment income, there are two rates of social charges: 17.2% and 7.5%. The standard rate is 17.2%. However, if you possess an S1 form or are covered by the healthcare system of another EU/EEA country, the charges on investment and property income are reduced to 7.5%. In other words, you only pay the 7.5% Prélèvement de Solidarité charge. This reduced rate continues to apply to UK nationals even after Brexit.
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