In 2019, around 1.7 million retirees from all plans decided to go into exile to live out the end of their career in peace. However, in this context, it is important to know some obligations for retirement pensions paid abroad and in particular the tax, but also specific social regime that results. This varies, in fact, according to the country of residence. Here are the main rules to know for a retirement abroad.
The taxation rules for retirement pensions received abroad can seem complex. Depending on your situation, you will have to pay income tax only in France, in your host country or in both countries. You can, in principle, be taxed in both countries. In order not to know this scenario, it is essential that there is a tax treaty between France and your host country. For example, countries such as Morocco, Portugal, Italy, Indonesia, Spain or Cyprus have signed an agreement with France, which allows your income to be taxed only once.
More than 70 countries have not concluded a tax treaty with France. When your pension is taxed in your host country, its rules apply. For the part of your pensions taxed in France, your tax is deducted at source by each pension fund. However, you must declare your pensions and other income received abroad from France. If the sum of this income exceeds the threshold of 44,173 euros set in 2022, your tax will be regularized the following year according to the rules in force for all taxpayers.
