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Why You Shouldn’t Move to France…Really??

The fountain at the Pompidou

A reader sent me a recent article titled “Why you shouldn’t move to France” by Nassie Angadi, for the obvious reason that I’m such a staunch advocate of my adopted country that he thought it would interest me.

Why you shouldn't move to France cover page

It did. I wanted to know just as much as anyone else why it wouldn’t be a good choice for someone. Understand, this is while sitting in my hospital bed thanking France every moment for the care I’ve gotten over the last week to bring me back to life…all at what I expect will cost me almost nothing, if nothing at all.

I’ll take you through each point Nassie makes in her article, so that you can weigh the decision for yourself, for your own situation, as that’s a key factor to this. She starts off with: “From high taxes to cumbersome bureaucracy, make an informed decision about whether the French lifestyle is truly for you.”

Agreed. Good idea.

As someone who moved to France myself 10+ years ago, I must say that I cannot imagine living anywhere else.

There you go. She admits it from the beginning, but let’s keep going.

But at the time I was young and unmarried, and frankly, I was not planning on staying beyond a year or two. (How things change!) With experience, I can say however it isn’t always the rosy view that expat writers in Paris love to proclaim. There are quite a few practicalities to think about before making the move. So let’s get to it, shall we? Allons-y!”

This struck me funny because if those expat writers (me being one them) paint a rosy picture, why is that? Are we lying about our experiences? I don’t think so, at least not me.

“No remote work visa. Before thinking about any move to France, the first thing to think about is what exactly you are going to do once here. And no, you simply cannot continue to work remotely for the same employer in your country of origin. France does not offer digital nomad visas, but more importantly, it does not have a tax regime where digital nomads can work remotely.”

Sorry, but you’re wrong. First of all, most of the people we work with are retirees and aren’t interested in working at all, just enjoying the fruits of their labor. But if they do, there are lots of ways to continue working remotely, reporting your earnings, paying your taxes and benefit from the France-USA tax treaty which is the best treaty in Europe, if not the world. I and my team of tax advisors can set you up to do this, even without what she calls a “digital nomad visa.”

Example of a Schengen Visa

“Foreign firms hiring a person residing in France must sign up for URSAFF and pay social security and patronal taxes hovering between 25%-43% of the person’s gross salary.”

She spelled URSSAF wrong. Oops.

I pay about 45% of my French earnings to URSSAF for French Social Security. Compare that with the 15.3% FICA I’d pay as a self-employed person in the U.S. and yep, it’s steep. But, if it weren’t for URSSAF, I wouldn’t be in this hospital recovering from the flu at the state’s expense. Instead, I’d be drowning in obscene insurance premiums and fretting over whether I could afford to be here or not. Maybe I wouldn’t have checked myself in as a result. Sure, the cost is a burden on young people who don’t expect to have such expensive medical needs, but one never knows what life throws your way. And while I’d love to pay less, I don’t regret one single penny because it means a universal healthcare system that is a right for all. Everyone has better healthcare, not just the rich.

Graphic showing the URSSAF data

Note: URSSAF is the governing authority on labor laws in France. They collect contributions from both employers and employees. These contributions are used to fund social benefits, such as health insurance, retirement pensions, and family benefits. URSSAF covers social security contributions for workers in France, including:

• Health insurance: Covers health and maternity insurance
• Retirement: Covers basic and supplementary pensions
• Sickness: Covers benefits for sickness and disability
• Family benefits: Covers benefits for family members
• Workplace accidents: Covers benefits for workplace accidents
• Old age benefits: Covers benefits for old age
• Solidarity: Covers national solidarity charges for social security financing
• Professional training: Covers contributions for professional training

“Even if you have an EU passport, any company hiring you for remote work must be registered into the French system and pay the corresponding taxes. So on a €100K salary, the charges to the employer would be €43K on top of the salary paid for a total of €143K cost to the employer. As you can imagine, the high taxes and complicated paperwork makes foreign firms quite reluctant to go down that route, unless they have already a base in France.”

I revert to the system I described above which does not require the firm hiring you from outside of France to pay taxes to France. We and our advisors can further explain this.

“High taxes. France has the highest taxes in the world beating out Denmark and Belgium. And if you are a French resident, these taxes apply to your worldwide income and assets.

1. Income taxes. The country has a progressive income tax system, with rates climbing up to 45% for high earners. Add to that mandatory social contributions of around 17% of your gross income.”

True. This has to do with the idea of spreading the wealth. The middle class in the United States is smaller than in France, but the U.S. has a higher median income. The US also has a larger upper-income tier and a higher level of income inequality. The middle-income group in the U.S. has declined over time. For example, from 1996 to 2012, the middle-income group declined from 54.2% to 50.6%. The middle-income group in France declined from 68.9% of adults to 67.4% from 1996 to 2012. However, the decline in France was less pronounced than in the US. The median household income in the US is higher than in France. For example, in 2010, the median household income in the US was $52,941, while in France it was $41,076. The U.S. has a larger upper-income tier and a larger lower-income tier than France. This results in a higher level of income inequality.

Chart showing global distribution of income

“2. Wealth taxes. French residents are subject to an annual wealth tax known as the IFI. If the net taxable value of your worldwide real estate assets is greater than €1.3 million, wealth taxes of 0.5-1.5% will apply. (A 30% reduction applies to your principal residence in France, assuming you own your property). Until 2018 the wealth tax applied to all worldwide assets, not just real estate. Currently various French political parties are threatening to reinstate those taxes.”

True. To anyone who has €1.3 million in assets, I ask: does such a small percentage really matter to you? How will it affect your daily life? Will you still eat three meals a day? I have a feeling you will, and will still eat well. Sorry, but I have no sympathy for those who pay this meager tax.

A luxury apartment in Paris

“3. Inheritance taxes. If you are an older retiree, you should also know about inheritance tax, otherwise known as droits de succession (rights of succession). All worldwide assets are subject to French inheritance tax, and the general rate varies between 55-60%. There are some tax-free allowances, but in general this is limited to €100,000 per child or parent. France has very strict rules about how inheritance is divided. In general, half goes to the legal spouse while the other half is divided amongst the defunct’s children. If you are not legally married to your partner or have children from a previous marriage and/or stepchildren, this becomes quite complicated. For example, a portion of your principal residence could be left to an adult child from your 1st marriage, complicating things for your spouse from your 2nd marriage. The general rule is you cannot disinherit a child, and in cases, notaries will even hire detectives to make sure that the defunct did not have any heritors that the notary is unaware of. Using options like investment vehicles like trusts, etc. have tax reporting requirements and may or may not be allowed. If you have substantial assets, get advice from French legal and accounting professionals before making the move.”

This is definitely the biggest issue for retirees. The good news is that as an American citizen, you can elect the free heirship laws of the U.S., but that will not affect the taxation. The way around this is to plan in advance so as to gift your assets before you pass away. Our tax advisors can help you do that. Those buying property have an opportunity to structure the title so the heirs inherit tax free. What portion is theirs is theirs. I’ve been moving assets to my daughter for this very reason and if you plan in advance (I did not), you can be well ahead of the game.

A family dinner in France

Another point of view is weighing the balance of the money you might leave your heirs with the quality of life you will have living in France. Not to be crass, but when you’re dead, you’re dead. You can’t take it with you and your heirs will still have plenty they didn’t do anything to earn, even after the taxes are paid. Think about it. Do you want to live the rest of your life for the sole purpose of making your kids richer than you were?

“4. VAT taxes. In addition to high personal income taxes, France also has a Goods and Services tax (VAT) of 20%. If you are planning on coming to France on a fixed income, you should make sure that your net income after taxes will be sufficient for you to live on.”

Nassie has obviously not compared the cost of living in the U.S. with France. One trip to the U.S. puts me in serious sticker shock. Even with VAT, the cost of just about everything is much less here than in the U.S. Groceries are less, insurance costs are less, healthcare is at least one-tenth the cost, as well are property taxes (!!), quality education is free, etc., etc. It doesn’t even come close to comparing.

Cost of living comparison between France and the US

See this cost of living comparison for the scary truth.

“Getting a local job. If you cannot get your current employer to continue hiring you remotely, you may be considering finding a job locally. However, finding a job in France as a foreigner is notoriously difficult. The market favors locals, and most jobs demand fluent French. The country’s strict labor laws make employers hesitant to hire, especially for permanent roles where it is quite difficult to fire people. Many professions (doctor, architect, electrician, baker, etc.) require formal recognition of your qualifications, a process that can take months or even years.”

True. I spent a year looking for a job when I decided to stay in France. It was not easy from all of those perspectives, but I got creative and found a way to work within the system by working via a U.S. company…one of the reasons I know how to do this so well. You can’t expect to arrive in France and “land a job.” And you have to have a work permit to do that. But even with the hurdles, I know lots of lots of young people who have managed to jump them well enough.

Meme for job searching in France

And if you do get lucky to find a job in France, France ensures five weeks paid vacation annually plus 14 days of holidays. Who in the U.S. gets that deal? And job security is paramount…you can’t get hired quickly, but you can’t get fired, either, without compensation. Your U.S. job has no security whatsoever. In one day, out the next.

“Running a business. If you are not planning on getting a job, but instead running your own business in France, this too comes with its own set of challenges. While the idea of starting a business in a picturesque French town might sound appealing, the reality includes heavy taxes, strict labor regulations, and lots of paperwork. The bureaucracy here is famous for its rules and regulations with tax returns, audits, inspections, legal hurdles and plethora of accounting requirements. Many foreigners find the system overwhelming.”

True. Doing business in France is not a piece of cake. I know since I do it! It’s very challenging to say the least, but it helps to have French partners/advisors who can help you navigate it. You cannot expect to get rich quick, that’s for sure, but you can be successful, earn a comfortable living and enjoy a healthy, happy lifestyle.

Graphic chart showing the steps to business creation in France

For a funny and fabulous read all about this, check out Craig Carlson’s book Pancakes in Paris: Living the American Dream in France (Culinary Memoir for Francophiles and Foodies).

The cover for Pancakes in Paris, by Craig Calrson

“Residence permits. Unless you are a citizen of the European Union, you will need a residence permit to stay in France. Securing a visa or permit involves countless forms, proofs of income, birth and marriage certificates, health insurance, and more. The process is lengthy and confusing, with rules that change frequently. I found that there was always some document that was not on the ‘official list,’ but that the government agent wanted anyway. Even after getting the initial residence permit, any renewals can be equally bureaucratic. There are long lines depending where in France you are based, and the whole process can feel never-ending.”

Bull. Not for Americans. Getting a long-stay visitor visa is simple and easy and takes only two to three weeks from the time you have an appointment. Nassie never tried to get a visa for the U.S., obviously! Here’s where you start for your French visa. If you can’t navigate it yourself, we have “hand-holders” and immigration attorneys to help you through the process, and we have clients who send us their good news of having it in their hot little hands every single day.

“Housing, driving, and settling in. Renting a home in France is another daunting process. Landlords often require extensive documentation, such as proof of income, bank statements, ‘titre de sejours,’ etc. In larger cities like Paris, not only do they usually want to see local income, they also want to see that you earn a minimum of 3 times rent as a salary. (Other forms of income are less kindly viewed upon.) In addition, they may ask for a local guarantor, who will pay rent in case you fail to do so. There are agencies and banks you can pay to act as a guarantor for you, but there is a cost to it.”

True. That’s why we exist. We assist people in finding property to rent or purchase every day all day long, and do it with success. Yes, there is a fee to do that, just like paying any professional to work their magic, and that’s what we do. Visit our website for more information on these services.

Meme for the Adrian Leeds Group's rental search services

“Driving in France can also be complicated for newcomers, especially since obtaining a French driver’s license may require retaking the driving test. Some U.S. states and Canadian provinces offer a driver’s license exchange, but only within the first year of French residence.”

True. Fortunately, most of our clients are looking forward to a car-free existence, which is easily obtained by living in a metropolitan area in France. For those living in reciprocal states, the process is much easier. France now recognizes U.S. citizens holding driver’s licenses issued in 18 US states. These states include the following: Arkansas, Colorado, Connecticut, Delaware, Florida, Illinois, Iowa, Massachusetts, Maryland, Michigan, New Hampshire, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas, Virginia and Wisconsin. Eligible US citizens must file an online exchange within the first 12 months of their arrival in France. US citizens moving to France from a state not on the list must pass a French driving test, which includes an initial test about the highway code in France.

A public transit bus in Paris

Learn more here on this French website.

BTW, I haven’t owned a car in 30 years thanks to France’s amazing public transport system! And I don’t miss it one little bit. Consider becoming a part of the community instead of living in your little bubble. You might just find you like it much better!

“And then there are all the other labyrinthine bureaucracies like setting up bank accounts, utilities, and health insurance.”

Thanks to our own government, FATCA has made it tough for Americans to open bank accounts without an introduction, but again, this is one of the services we provide. Utilities are not a big deal, but we help you do this, too. Health insurance is the easiest of all. We have insurance brokers who can take this weight off your shoulders. See this page on our site.

Adrian Leeds Group meme for insurance assistance

“Speaking French. Although English is widely spoken in tourist areas, real integration in France requires a decent fluency in French. Official documents, government websites, and most job applications are in French. Without strong language skills, daily activities like shopping, setting up utilities, or visiting the doctor can become really challenging.”

Nassie, where have you been?? Again, living in urban areas reduces this stress. The French are now taught English from an early age so anyone under the age of 40 speaks decent English. Learning a new language will also be one of the most fun things you’ll do to enrich your life, and when you get stuck there are always translation programs like DEEPL to make everything you do easier. Even after 30 years of living here, I use it daily to translate letters I’ve received, or emails, etc., and to turn my English into good French for them. This way I don’t miss a beat. While I’ve been in the hospital, lots of the staff have loved showing off their level of English and have all been helpful in understanding my needs.

Here are great ways to learn French.

“Moving with children. Relocating with children presents its own set of challenges. For younger children, finding a spot in a local crèche (daycare) can be particularly difficult due to limited availability. Spots are prioritized for children who have both parents working in France. Language barriers can also be difficult for children adapting to a new environment, especially if they don’t speak French fluently. If you plan on sending your child to a private international school where the main language is English, be aware that annual fees can hover between €20k-€30k per year per child. French cultural differences and school expectations can also require significant adjustments. Public schools and private catholic schools are much stricter in France than in North America, making the transition difficult for middle-school and high-school age children.”

True. But, it was the best gift I could ever have given my child. She was eight year old when we moved here and the cultural challenges were acute. I could tell stories! Nonetheless, she herself will tell you that she would not be the person she is today without having moved to France. She is completely bi-lingual and has a decent level of a third language. She attended a private bi-lingual school her first year, then moved to a public international school with one-quarter of her classes in English. She graduated with an International Baccalaureate degree that opens doors to universities worldwide. Her level of education compared to her U.S. compatriots upon graduation was as high as having two years of junior college under her belt. And she was independent having traveled all over the city, the country and even Europe on her own and with friends as young as 15 years old. When she went to college in New York, she was lightyears ahead of her peers in every respect—sophistication, knowledge, experience, travel, etc. and she saw herself as a citizen of the world. From my perspective, this IS the reason to bring your kids to France and do it early, so they can have a head start and make the transition easier.

Erica Simone, world traveler

Erica Simone, world traveler

“Difficulties making friends. French people tend to form close-knit social circles early in life (school, university, etc.), leaving little room for newcomers. Foreigners often find that making friends in France can be challenging. Breaking into these circles requires patience, language fluency, and cultural understanding. As a result, many expats find themselves socializing primarily with other expats.”

True. It can take years to form close friendships with the French, but once you do, you have a true friend for life. Also, you will find that those you have the most chance of befriending will be more multi-cultural, speak at least some English, will have traveled and be more open-minded to making new friendships. One thing that happens for expats that can change their lives for the better is, in fact, discovering the other expats. There is no more wonderful support group and instant friendship and camaraderie than with those who are just like you, have gone through the same trials and tribulations and emotions of making the move. You will feel as if you have known these people your entire lives. And they are largely well educated, well traveled, open minded, have held fascinating past lives and have a lot to offer as friends. You can make more friends in 90 days of living in France (if you’re living in an area with a larger expat community), than you have made your entire life. There are lots of ways of meeting those people and you get to choose how you fit them into your life or not, but I see it and hear it daily from our own clients who have formed close bonds with other newcomers very quickly.

Splashpage meme for the Adrian Leeds Group's Apres-Midi

Take note of the events we offer where you can meet expats and others on a regular basis!

“As with anything, setting in France requires a concentrated effort. So if you are still ready to come, bienvenue en France!”

If you think you might want to take the challenge, contact us to make all this a whole lot easier. Contact us to learn more.

A la prochaine…

A watercolorized headshot of Adrian LeedsAdrian Leeds
The Adrian Leeds Group®

P.S. Thanks to all you who have written in with your concerns of my health. It has been enormously heartwarming and appreciated. The good news is that I’m on the mend and perhaps by the time you read this, I’ll be home and taking it as easy as I can! Be safe, stay vigilant and well.

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