Tax hell or haven?

What are the advantages of becoming a permanent tax resident in France instead of remaining a non-resident?
There can be many advantages. The first is, of course, enjoying the wonderful way of life in France all year round and not having to stay outside more than six months a year.

From a tax point of view, capital gains from the sale of the main residence of a French resident is not taxed, unlike non-residents.

Also new French residents pay wealth tax only on the basis of their assets in France (not abroad) for the first five years. Furthermore, it is possible to manage a financial portfolio and earn income from it with a low taxation. Thus, the capital gains made in a French insurance policy are lightly taxed (maximum 19.6 per cent) if an income is actually taken from it after eight years of investment. As long as the money remains invested, there is no tax. Even more attractive, there is no inheritance tax for the amounts transmitted through these policies if the person signs them as a non-resident and before the age of 70. Trusts and foundations can be recognised, if they have been established by non-residents. Of course, there can be many other advantages, which are all specific to the personal situation of the future resident.

How do I know if residency is right for me?
It is very important to structure one's assets and liabilities before becoming a tax resident in France.

Actually, there are ways to lower income, wealth and inheritance taxes in a legal manner. Every case has to be studied separately to check if these strategies can be applied to one's particular situation. RFP, as a financial advisor specialist for clients from Northern Europe, can help in this and arrange everything on behalf of the client (mortgages, insurance policies in France and Luxembourg), so they can really profit in every way from their new life in France.

Riviera Financial Planning
Independent Financial Advisor
and Mortgage Broker
Tel: +33 (0)4 93 00 11 26