Considering Moving or Retiring to France? Protect Your Finances



Considering Moving or Retiring to France? Protect Your Finances

The attempts to curb the spread of Covid-19 over the past year have had at least one positive impact; they have brought into sharp focus what people actually want from their lives.

The dramatic shift in how we work has meant that we have been able to take stock and realise that a complete return to that former life might not be what we want. Similarly, those of us who perhaps have put off our dreams for years have realised that life really is too short to continue to keep these dreams on hold.

This is why many Francophiles have decided to start their next chapter in France as soon as the pandemic abates. Even prior to the pandemic, the number of Brits registering to live in France was skyrocketing. According to data* from the OECD and Eurostat, the number of Brits registered in France since the UK’s Brexit referendum in 2016 has increased by more than 60% compared to 2008.

What You Need to Consider

There are numerous things to think about when moving to a new country. However, for those moving, what is often overlooked is getting their financial matters and attendant legal considerations in order.  It is not just savings, investments and pensions, and how they will grow, but the impact of an entirely different system of taxation that needs to be considered too particularly in relation to intergenerational wealth transfer.  For example, areas to take into account include who the civil code in France allows to inherit (which is very different from the freedoms found in the UK common law), and a system of inheritance tax based on the recipient of an inheritance and not the donor.

Knowledge is power

Assurance vie, or life assurance, is one of the most common and efficient investment vehicles that can be used to minimise taxation in one’s lifetime in France. An assurance vie helps to efficiently pass wealth on without the local heirship rules applying and can reduce French inheritance tax.

Getting financial advice to navigate these confusing laws and tax regimes is paramount. A good financial adviser will not only help an individual look at their finances and how they fit with the French regime, but also plan their estate for future generations specifically taking into account strict Napoleonic laws on passing on wealth.

French Product in Plain English

Quilter International, through its EU operation in Dublin, Ireland, offers assurance vie through a number of financial advisers in France. Unlike many domestic French product providers, Quilter International’s product literature and documentation is in English. Our award-winning French Executive Portfolio includes the widest range of investment choice including stocks, shares and hundreds of mutual funds from internationally respected and well-known investment managers.

To find out more about Quilter International solutions in France, please visit our website or speak to your financial adviser.


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