Contact

News & Insights

CSG Changes for Expats in France

Details of the changes to the charges were made by President Emmanuel Macron during a television address that was designed to pacify the anger of protesters in the country. Macron said that proposed increases to the contribution sociale généralisée (CSG) rate would be shelved for any person living on less than €22,850 a year.

As result only 30% of retirees will now have to pay the increased rate of CSG.

Expats and pensions exemptions

Furthermore, any expat living in France who carries an ‘E’ form, S1 health certificate, or who receives a government service pension will be exempt from additional charges as they qualify for 100% relief against the social charges on their pension income – any additional pension income will be subject to the charge unless additional exemptions apply.

Calculating liability

The amount of charges applicable to an expat will depend on their total taxable income – i.e. pension income, investment income and salary income.

Spouses are subject to a common rate. This is true regardless of whether one spouse could have claimed an exemption or different rate.

However, expats who are hoping to enjoy the more preferential rates will have to wait until the summer, following the submission of their 2018 tax return, at which point they may receive a rebate for any money they have overpaid in social charges since January 2019 (the date at which the new CSG charges took effect).

Prélèvement de Solidarité – different dates for different income

If an expat does not receive French state healthcare and instead receives it from another EU or EEA country, they will be subject to a flat rate 7.5% tax under the Prélèvement de Solidarité system.

Prélèvement de Solidarité does not apply to all types of income from the same date. Investment and passive income are only eligible for the tax from 1st January 2019; in contrast most capital gains and rental income from unfurnished properties are eligible from 1st January 2018.

Expat wealth management in France

Blacktower Financial Management can help you with your expat wealth management, including expat tax planning in France, to help you ensure that your investment, pensions and rental income is optimised to your best possible benefit.

Contact us today for information and advice.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

PM Johnson Could Halt the Threat of No-Deal Litigation

Houses of ParliamentBoris Johnson’s elevation to Prime Minister of the United Kingdom has again raised the spectre of a potential no-deal Brexit.

Against this background, it is looking increasingly plausible that predictions of legal action against the UK government by British expats in the EU could become a reality unless the PM takes action. Even in the days before Johnson’s win over Jeremy Hunt in the Conservative Party leadership election, it was warned that expats in Europe could take legal action and sue for loss of rights.

Conservative MP Alberto Costa warned Boris Johnson in a letter dated 20th July 2019*, that unless he was able to tackle the many issues facing expats, his government could be overwhelmed by legal action.

Read More

Impact of the Russia and Ukraine conflict

Investors have had a lot thrown at them in recent months, with the emergence of the Omicron variant, rising inflation worries and the prospect of higher interest rates. To these concerns, we can now add the Russian invasion of Ukraine which, aside from the likelihood of human suffering, poses geopolitical dangers for the West and […]

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: