Relocating from France to the United States marks an exciting new chapter — whether you’re pursuing a career opportunity, joining family, or starting a new life abroad. But while the move offers enormous potential, it also introduces complex financial challenges. The US financial and tax systems differ greatly from France’s, and understanding how your income, pensions, and investments will be treated on both sides of the Atlantic is essential to protect and grow your wealth.
At Blacktower Financial Management, we specialise in cross-border financial planning for individuals moving between Europe and the US. With nearly four decades of experience in international wealth management, our advisers help expatriates transition smoothly — ensuring your finances are structured efficiently, remain compliant, and continue to work for you in your new home.
Understanding the US Tax System
The US tax system is one of the most complex in the world. Once you become a US tax resident — typically under the Substantial Presence Test — you’ll be taxed on your worldwide income, including earnings, pensions, and investment returns from France.
While the US–France Double Taxation Treaty helps prevent you from paying tax twice on the same income, correct planning is key. You may still have to report your French financial accounts to the IRS and the US Treasury (via FATCA and FBAR regulations). Blacktower’s international advisers help you navigate these obligations, ensuring your financial life remains fully compliant.
Managing French Assets and Investments
French investments — such as Assurance Vie policies, mutual funds, or EU savings plans — are not always recognised as tax-efficient under US law. Many are treated as PFICs (Passive Foreign Investment Companies) and can be heavily taxed by the IRS.
Before you relocate, it’s vital to:
- Review and, if necessary, restructure your French investments into US-compliant solutions.
- Plan the timing of withdrawals or portfolio changes to minimise tax exposure.
- Understand how currency conversion from euros to US dollars may affect your returns.
Pensions and Retirement Planning
If you have a French pension or European retirement savings, these may be taxable in the US under American law. Our advisers can help you design a tax-efficient income strategy and coordinate reporting obligations under the tax treaty, while exploring long-term investment and retirement planning options available in the US (such as 401(k)s or IRAs).
Why Blacktower
Blacktower’s cross-border expertise means we understand both European and American financial systems. From tax and pension advice to investment management and estate planning, we provide complete, tailored solutions for expats moving from France to the US.
Speak to us today to arrange a confidential consultation and discover how Blacktower can help you relocate with complete financial confidence.