Are you wondering if it’s possible for Americans to move to France? The answer is…yes! While it’s wise to be aware of the risks and challenges associated with moving overseas, if done properly, France can be a very rewarding and cost-effective place to live.
Where do I start?
Americans can come to France on a three-month tourist visa whenever they like. However, if you’re planning for a permanent move, advance preparation is key:
- Visas and/or Work Permits: There are several different types of French visas, each one adapted to a particular profile, from digital nomads to retirees.
- Property: Obviously, it will be necessary to choose where you would like to live in France as there are a lot of wonderful places to choose from. In addition, it’s important to be familiar with the rental and/or purchasing process in France as it differs quite a bit from the US.
- French Bank Accounts: To rent or buy French property, it’s essential to have a French bank account. This isn’t always easy to do from overseas, but if you happen to be in France on a tourist visa, we recommend trying to open an account while you’re there.
- US Bank and Investment accounts: Once you decide to move overseas, it will be necessary to verify that your US bank accounts, retirement accounts, or investment accounts are compatible with your new overseas address. This is by far, one of the most common financial issues with US expats living in France.
Top Five French destinations for Expats:
- Paris and its countryside
- France’s west coast: Brittany, Normandy, and La Rochelle
- Nice and the French Riviera
- Bordeaux and the Aquitaine region
- Toulouse and the French Southwest
What is the cost of living in France?
It depends on where you’re from in the US, but in general, the cost of living in France is cheaper. Big expenses such as housing, healthcare, and education will be much lower than in the US, and there are other advantages such as quality public transportation, and easy access to other travel destinations.
How about taxes as an American living in France?
France taxes: French residents – including US expats – must report their worldwide income on their French tax returns, but it doesn’t mean that you will necessarily owe taxes. For example, the US-France tax treaty has a very favorable treatment of US retirement income, which remains taxable only in the United States. That said, benefits must still be reported on your French tax return to calculate your tax rate.
US taxes: All US citizens, no matter where they live, must declare each year their worldwide income to the IRS. However, there is a Foreign Earned Income Exclusion ($126,500 per person in 2024), as well as other tax breaks that offer relief for US expats living in France.
How about my retirement and investment accounts?
If you have accumulated a nest-egg in retirement accounts, (401k, IRA, etc.) or maybe plan to put the proceeds of the sale of your US residence in a brokerage account, it’s important your finances comply with both French and American regulations. Some people may try to keep a US address for their American accounts, but we’ve seen this type of situation go sour as banks suddenly close their expat clients’ accounts. At Harrison Brook, we have done the legwork to partner with world-renown custodians that allow our US expats clients to invest their funds in a large range of securities, all while using their overseas address. Whether you’re retiring overseas, or even going back to the US later in life, your investment accounts with Harrison Brook are safe and secure with a custodian and a cross-border financial advisor that will be able to service you no matter where you live.
Get a financial game plan with the Harrison Brook team
Moving to France from the U.S. can be an exciting change, but it can be a significant task to manage on your own. At Harrison Brook our cross-border financial advisors work hand in hand with attorneys specialized in immigration and cross-border estate planning, as well as dual US-French tax advisors, to build the team you need for your transition to France. Don’t hesitate to reach out and schedule a free consultation with a Harrison Brook advisor.
FAQ
Can a US citizen live in France permanently?
- Yes, US citizens can move to France permanently, if you have a long-stay visa. It is renewable for the first five years, then you can apply for permanent residency, or apply for a dual French citizenship through naturalization.
Can I move to France without a job?
- Yes, retirement visas or student visas allow you to come to France without a work visa. France is also in the process of introducing a “digital-nomad” visa, which hopefully will be available shortly.
Can I retire in France as a US citizen?
- Yes, there is a special “retirement visa” for retirees who wish to spend their golden years in France. You will need to prove you have sufficient financial resources, private health insurance, and proof of accommodation.
