How Proper Financial Planning Can Ensure A Happy New Year



How Proper Financial Planning Can Ensure A Happy New Year


The start of a new year can be an opportunity to structure your finances more efficiently, allowing you to better safeguard your future in France.

Financial planning is not the most fun endeavour to engage in but is certainly the most effective for protecting your long-term financial interests, for yourself and your loved ones. Kick off 2022 by making sure your affairs are positioned in the most efficient way possible, to keep your goal of financial security and living in France on track.

Here, we will offer a few takeaways that will help take care of the important things.

Set dates to check your finances more regularly

Regular reviews help keep your financial affairs compliant and up to date. French tax rules change frequently, as can financial regulations, which may affect the tax efficiency of your existing arrangements or provide new opportunities. You should also keep on top of any Brexit developments that may affect you.

Your personal and family circumstances may also have changed, which may mean you need to adjust your arrangements accordingly.

For a truly effective review, and to ensure it is suitable for your new life in France, consider how your investments, tax planning, pensions and estate planning work together.

Relocating savings and investment structures

If you live in France and don’t already have a financial plan in place for France, you need to take a fresh look at your savings and investments. If you’re still planning your move to France, it’s worth considering this sooner rather than later.

Successful investing is about having a strategy specifically based around your personal circumstances, time horizon, needs, aims and risk tolerance. Explore investment structures that allow multi-currency flexibility to help minimise exchange rate risk.

Understand how all your savings and investments are or will be taxed as a resident of France and look for the most tax-efficient ways of holding your capital.

Taking care of taxes

You should first make sure you know where you will be resident for tax purposes, especially if you plan to spend time in both France and the UK. Then structure your investments and wealth in the most suitable way to minimise taxation while still meeting your obligations.

Cross-border tax planning is complex, so take specialist advice to achieve peace of mind and potentially secure significant tax savings.

Protect your pensions

Pensions are usually key to financial security through retirement, so deciding what to do with yours could be one of the most important financial decisions you make. 

Take the time to explore all the available options, weighing the pros and cons and considering the tax implications and potential benefits in France.

Make sure you take regulated advice to protect your retirement benefits from pension scams and do what is right for your personal circumstances.

Understand how estate planning works for a life in France 

Both French succession law and tax work very differently to what you’re used to in the UK, so it’s important to adjust your estate planning once you move to France.

Are you aware, for example, that French ‘forced heirship’ rules could automatically pass a significant proportion of your worldwide estate to your direct family, regardless of your wishes? You can specify in your will for the EU regulation ‘Brussels IV’ to apply relevant British law to your estate instead, but take care to understand your options and any tax implications.

French inheritance taxes can be high, especially when leaving assets to people other than your spouse and children, so structure your estate plan to achieve your wishes in the most tax-efficient way possible.

To bring all the complex elements together and ensure you have not missed out on any suitable opportunities, take expert, cross-border advice. If you have not yet moved to France, seek specialist advice before you do. 

Spending time on a financial health-check now can secure peace of mind that you and your family are in the best position to enjoy a prosperous 2022 and beyond.

Blevins Franks are experts at helping British expatriates make the most of their wealth in the most tax-efficient way possible. We provide integrated, cross-border advice on tax planning, estate planning, investments and UK pensions. Our overriding aim is to give you peace of mind that your financial affairs are in order, for today and the future, for yourself and your family and heirs. We can also guide you through the new residence rules post-Brexit. We have ten offices across France and our advisers would be happy to discuss your plans to move to France and how we can help.

+44 (0)20 7389 8133

[email protected]

Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices, which are subject to change. Tax information has been summarised; individuals should seek personalised advice.

You can find other financial advisory articles by visiting our website here.

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