Every year, many French people decide to go and enjoy their retirement abroad. Some countries offering a better quality of life and more advantageous taxation, this can indeed be interesting. But as Capital reminded us on Tuesday, July 12, make sure you complete all the necessary formalities and check certain points before you leave.
First, find out about the cost of living in the country where you plan to move. If with 2,500 euros per month you have to be careful in France, in some countries you can live very comfortably. In Morocco, for example, the cost of living is 30% cheaper than in France. It is also 40% lower in Senegal and 60% lower in Thailand. Be careful though, the standard of living can quickly increase in large cities and tourist areas.
If these are countries that have signed an agreement with France, this can be profitable for tax purposes. Indeed, you will be exempt from social security contributions on your retirement and will just have to pay a contribution of 3.2% on your basic pension and 4.2% on your complementary.
Regarding income tax, countries that have signed a convention often offer attractive scales, as is the case in Malaysia, Greece or Portugal. Otherwise, you expose yourself to double taxation. It should be noted that only accommodation located on French territory is subject to real estate wealth tax (IFI).
Once your destination has been validated, you will have to go through several administrative procedures. You will need to notify Social Security and your pension fund to forward your pensions. You will also need to inform your bank and open an account abroad. Note that in the event of expatriation, it is not possible to receive the solidarity allowance for the elderly (Aspa) or to keep sustainable development and popular savings booklets.
Also ask your notary about the consequences that your expatriation may have with regard to your estate. And even if this is not encouraging, anticipate a possible death by planning to finance the repatriation of the body.
If you have a pet, do not forget to check that it obeys the health rules of the country. Finally, a very important point not to be overlooked: your health coverage. No matter the country where you go to live, you will never be as well covered as in France. The French healthcare system is one of the best in the world. It is therefore best to take out private insurance and mutual insurance. This is particularly possible with the Caisse des Français de l’étranger (CFE).
