On a warm evening in France, as the café terraces begin to hum with conversation, it’s easy to understand why so many Americans dream of making a life here.
And increasingly, they do.
From retirees seeking a slower pace of life to professionals working remotely or families wanting to make the most of the laidback French lifestyle, the number of Americans moving to France is growing. But while the adventure is intoxicating—the street markets, the wine, the rhythm of French life—there’s another side to the journey that requires careful thought.
Finance.
France has a famously intricate financial system, and when combined with onerous US reporting requirements, the result can be a complicated puzzle. As Amy Witherbee at Sanderling Expat Advisors explains: “France is very particular when it comes to finance. It’s essential to look at everything as a whole—not tax as one thing and investments as another. You need to consider it as a single review with many moving parts.
The Big Picture Financial Planning for Americans Moving to France
The financial relationship between the United States and France is shaped by the fact that Americans are taxed based on citizenship, not just residence. That means that even after moving abroad, US citizens must continue filing US tax returns and reporting global financial assets. At the same time, once resident in France, you also become subject to French taxation.
Over the years, agreements such as the US–France Tax Treaty and international reporting frameworks like FATCA (Foreign Account Tax Compliance Act) have helped clarify the rules—but they have also created new layers of compliance (Amy’s article on FATCA, FBAR and other F-words offers a jargon-free explanation).
For many Americans arriving in France, the biggest surprise is how differently the two countries treat savings, investments and financial planning. What may have worked perfectly well in the US can suddenly become inefficient—or even problematic—once you are living in France
Whole-Life Approach
One of the biggest mistakes expats make is looking at financial matters separately: tax in one place, investments somewhere else, retirement planning somewhere else again. But it’s an approach that doesn’t work when you move to France says Amy. “We’ve made the move ourselves, we know how challenging it can be to move to a new country, get to grips with the language, the way of life – add in the angst of dealing with finances that are nothing like back home. But it’s not something that should dampen your spirit, ruin the joy of moving, that’s what we’re here for – we take the stress away from trying to understand the complicated rules, the ever-changing requirements and the … and help you to plan and manage your finances so that you can enjoy your new life in France.”
Sanderling Expat Advisors specialise in stepping back and looking at the entire financial picture. Income, savings, investments, retirement planning, tax exposure and long-term goals are all connected pieces of the same puzzle.
Their role is to help bring these elements together into a coherent life plan, as Amy puts it, “we create what we call a roadmap for how you want to live now and in the future. Because moving to France isn’t just about where you live. It’s about how you structure your life. We’re like project co-ordinators, we look at your healthcare, retirements, income requirements, and we ensure that all your needs are optimised to the very best that can be to suit you.”
For Americans in France, financial planning always involves two countries. Even everyday financial decisions—where to hold investments, how to structure savings, or when to sell assets—can have consequences in both jurisdictions.
A strategy that works well in one country can create complications in the other. “Clients often say: ‘I hear that I can’t buy funds in France’ – but it’s not that France won’t allow it, it’s mostly due to the IRS where rules are not necessarily geared towards an average saver trying to put some money away. What we do is help everyone to maximise their finances, hold the right vehicles, reduce tax liabilities where possible. And this is why expats often need specialists on both sides of the Atlantic. Knowing who to speak to is critical – we guide clients to the right areas and liaise with difference authorities where required.”
Certain investment products commonly used in France may not be tax-efficient—or even compliant—for US citizens. At the same time, some US investment accounts may not integrate well with the French tax system. So careful planning is essential to ensure that savings, pensions and investments are held in structures that are acceptable to both France and the United States.
Sanderling expat advisors pivotal role is simple: ensuring that every element of your financial life works together smoothly. They review the big picture for you, recommend action and can recommend professionals to help you.
“We also help resolve mistakes. For instance, we recently had a client who had made a mistake on a tax declaration. We drafted a letter for them and helped them liaise with the relevant authorities to resolve the issue. We’ve had clients who have been sold a product that doesn’t work for them, so we help to fix that, and we advise the right products to buy to suit that person and their life goals.”
Amy’s top financial tips for Americans moving to France
If you’re planning a move to France—or have already arrived—these practical steps can make a huge difference:
Seek advice early. Financial structures are far easier to organise before moving. For instance, we can run a financial health check, and help you make the most of your finances. As an example, you might be able to use US gift tax rules to your advantage, or reduce tax on the sale of your property in the US depending on when you sell, and when you move, we’ll look at everything from variable life insurance to special tax breaks that are unique to Americans.
Think long-term. Retirement, inheritance planning and tax exposure should all be considered together.
Don’t assume US solutions work in France. Many financial products are treated differently.
Work with independent advisers. We give impartial guidance helps ensure recommendations are based on your needs, not a product.
Head to Sanderling Expat Advisors to discover how expert, independent guidance can help turn your French dream into a secure and well-planned reality, and book a free initial consult at: sanderlingexpat.com
