Relocating from the United States to France is an exciting opportunity — whether for work, retirement, family, or lifestyle. France offers a world-class healthcare system, rich culture, and enviable quality of life, but the move requires careful financial and tax planning. The French and American financial systems differ greatly, and understanding how to manage your wealth across borders is essential to avoid double taxation and protect your assets.
Tax and Residency
Once you spend more than 183 days per year in France or make it your main home, you become tax resident and are liable for French income tax on your worldwide income. This includes US-based income such as dividends, pensions, and investment returns. Fortunately, the France–US Double Taxation Treaty helps prevent the same income from being taxed twice. However, because the US also taxes citizens on their global income, you’ll likely need to file both US and French tax returns annually. Professional advice is crucial to ensure correct reporting and full compliance with both the IRS and French Tax Authority.
Managing Investments and Wealth
American expatriates often find that certain US investment products, such as mutual funds, are not recognised for tax efficiency in France. Similarly, French investment structures may not be IRS-compliant. Many US citizens in France choose to restructure their portfolios into tax-efficient, France-compliant solutions such as the Assurance Vie — a flexible life assurance investment that allows for tax-deferred growth, reduced taxes on withdrawals, and efficient estate planning. A cross-border financial adviser can help build a portfolio that meets both French and US regulations.
Retirement and Pensions
US retirement accounts such as 401(k)s and IRAs can be retained while living abroad, but withdrawals are taxable in France under the double taxation treaty. With the right planning, this income can be optimised to ensure you’re not overpaying tax in either country. For those with dual citizenship or assets in both countries, coordinated pension and investment management is key.
How Blacktower Can Help
At Blacktower Financial Management, we specialise in cross-border financial planning for American expatriates living in France. Our expert advisers help you understand how local and US tax rules interact, restructure your wealth efficiently, and ensure long-term financial peace of mind.