Do you have connections in both France and the United States? If so, you may be missing out on favourable financial arrangements between these two countries and paying significantly more tax. Read this essential financial advice for US Expats in France
Financial advice that truly pays (out!)
Maybe you’re a US citizen hoping to retire to France, or a French national who used to work in America, or perhaps you’ve lived in France for years, but someone in your household has a green card. The moment you have any connections to both countries, you could probably benefit from a special treaty, but you might not even realise it. So, how do you find out?
Ask an expert
This is one situation where a professional contact can prove invaluable. Amy Witherbee is a lawyer and financial advisor qualified to work in both France and the US; perhaps more importantly, she has first-hand experience.
“Twenty-five years ago, my husband Douglas and I set up a small investment advisory firm in Massachusetts, called Revolution Capital. As we worked increasingly online, we realised that we could work from anywhere, so why not live the dream and move to France? I’ve always loved it here, and Rennes in Brittany has a somewhat similar feel to Boston – there’s a connection that I can’t really explain!
“We arrived in February 2022 and immediately realised that most people in our situation didn’t know about the financial treaty that exists between our two countries. This is crazy given that it can have such a positive impact on your finances, so a lot of people are missing out and have no idea.”
Alongside their US-based company, Amy and Douglas decided to set up Sanderling Expat Advisors, helping clients with a US and French connection to understand and take advantage of an agreement simply referred to as ‘the treaty’ because its full title is so long!*
Who needs financial planning?
“Most of our lives we muddle through from one month to the next, trying to save a little bit and not spend more than we have,” explains Amy, “but there comes a moment when we need to take a step back and get a handle on the big picture: that’s when you do financial planning.
“Typically, it comes from a life event, so you could be looking to buy a house, considering a job in another country, planning to save for a college fund or thinking ahead to your retirement. These moments prompt us to look up from the everyday task of bill-paying and think about our finances differently. If everyone in your family is the same nationality and you’ve never lived or worked in a different country, planning can be straightforward, but these days, many of us have lived or worked abroad at some point, or we might want to move to a different continent when we retire.
“If just one member of your household is a US citizen or green-card holder, financial planning can get really complex because of this tax treaty and also the succession and inheritance laws. These are issues we don’t necessarily think about when making our life decisions, but they can have a big impact.”
When an objective eye is invaluable
“We all know that money can be an emotional issue,” says Amy, “not only for causing arguments, but it’s just hard to talk about, even with loved ones. Let’s face it, these financial questions often involve significant life events. If you’re expecting an inheritance, that actually means you’re losing someone; if you’re retiring, that means your career is coming to an end; if you’re planning to move to another country, you’re changing your whole way of life.
“Big financial changes nearly always involve big emotions, so it helps to have an objective eye on these matters, someone who can see your situation from the outside. An independent party can help you to make rational financial decisions that will put you in a far better position for the future.”
Truly impartial expertise
One of the stand-out features of Sanderling is that they do not sell any financial products, which means that they have no vested interest in your decisions because no commissions are involved. They provide you with purely independent advice that reflects your specific situation.
More importantly, you can rely on their expertise. Amy and Douglas are both registered investment bankers in the US and France; they are both registered with the relevant authorities in France, and Amy is also a qualified lawyer in the US. Additionally, they have experienced the challenges of balancing life and work in both countries, along with the associated paperwork.
“You’ll find a lot of information online,” Amy points out, “but unfortunately, a lot of it is misleading at best, often mixing up the Canadian treaty and the US treaty, which is unhelpful. Even if you just want to look online for some basic facts, at least go to the right place – you might find what you need for free.”
Essential financial advice for US Expats in France
The Sanderling website (www.sanderlingexpat.com) has a comprehensive blog entitled ‘Advice for expats’. This section features a diverse range of informative, easy-to-read articles covering a broad spectrum of topics, including French taxes on the sale of a US property, reporting foreign accounts, and the differences between French and US inheritance laws.
You could find the advice you need simply by browsing through these articles in your own time, and at least you’ll have the reassurance that well-informed and qualified professionals write them.
Detailed, personalised service
If you need a more detailed service, simply click the ‘Contact’ button on the website to get in touch with Amy and Douglas.
The first step is a free consultation, where you can give an overview of your financial situation and what advice you need, for example, what your financial goals are, when you want to retire, and what’s the best investment option?
You can then look at how the treaty might impact your plans, and how IRS regulations might limit what you can do. Whether you’re just in the ideas stage or you’ve already made a move, you can get independent financial advice that is tailored to your situation.
Is this only for American clients moving to France?
Not at all. Sanderling works with clients worldwide, and over half of them are French nationals. Most are retirees looking to retire in France, some are families hoping to relocate, some are freelancers, others are employees, and there are also businesses sending employees from the US to France who need professional insights.
Whether you’re in the US or France, whether you’re at the information-gathering stage or already settled in France and needing advice for the longer term, Sanderling can help.
Find out more
Visit the website www.sanderlingexpat.com/ for free, accurate articles about the financial practicalities of life in France. If you would like to take it further and receive more personalised information, click the contact button to arrange an initial consultation, which is free of charge.
*For those who like to know, the treaty’s full name is ‘the convention between the government of the United States of America and the government of the French Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital’.
