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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.

Other News

Expats with regular savings encouraged by new buy-to-let offerings

Terraced HousesGood news for UK expats with regular savings; lenders are introducing more buy-to-let mortgages specially designed to provide for the needs and circumstances of British expats. Until now there has been a shortage of viable deals, despite the fact that demand has been, and continues to be, strong.

Surprisingly, it is not expats from traditional destinations such as France and Spain who are likely to be the main customers of the buy-to-let deals. The United Arab Emirates and Dubai are reported to be the major markets for UK expat buy-to-let mortgages.

However, the mortgages will not be available to all expats. For example, expats resident in Australia, South Africa, Kenya and 89 other countries will be ineligible to borrow from the main provider, Skipton, and as such will have to look elsewhere before using their expat regular savings to make a buy-to-let investment.

Read More

Quality insurance top priority for expat employees

PriorityAs an expat, choosing a robust life insurance policy, as well as medical insurance, can provide help to reassurance that you and your loved ones will be cared for should the worst happen. And recent research has highlighted just how valued such policies are.

A new survey from Bupa Global has found that such policies are amongst the items expats expect most from their employer when they move to work overseas.

Bupa Global questioned 150 senior human resource directors and 1,851 globally mobile employees. The international health insurer’s research showed that expats are putting an increasing demand on their employers to provide them with more health and wellbeing benefits.

Read More

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