Are you an American retiring in France? Learn how American taxes in France work, whether your U.S. Social Security or pension is taxed, what to expect for healthcare contributions, and the basics on property taxes, work rules, and inheritance — all in plain English.
When I first moved to France, I thought the hardest part would be learning the language or trying to open a bank account. Instead, a big puzzle has been taxes. Ask ten Americans in France what we owe and where, and you’ll get ten different answers.
To clear things up, I’ve asked the people who helped me through it all — my long-time French tax advisor from Peter Johnson. Here’s what I’ve learned, in plain English, about how American taxes in France really work for those of us who choose to live in France.
1) When Are You a French Tax Resident?
Having a visa or residence card doesn’t automatically make you a tax resident. France looks at where you actually live your life. You’ll be considered a French tax resident if any of these are true:
- Your main home is in France.
- You spend more than half the year here (about 183 days).
- You work in France.
- Your money and business interests are mainly in France.
But what if both the U.S. and France could claim you as a tax resident? That’s where the tax treaty tie-breaker rules come in.
Here’s how the U.S.–France treaty decides “where you live” for tax purposes:
Where is your permanent home? If you only have one, that’s your residency.
Where is your life centered? If you have homes in both, they look at where your family, work, and finances are most closely tied.
Where do you spend more time? If the first two don’t decide it, the country where you’re most often present wins.
Which passport do you hold? Nationality is the next deciding factor.
If all else fails, The U.S. and French tax offices can negotiate your residency together.
In short, your residency is based on where your life is really rooted, not just on paperwork.
2) U.S. Pensions and Retirement Income
Here’s the part everyone wants to know: what happens to Social Security and U.S. pensions?
The good news is that they are taxed in the U.S., not in France. You still list them on your French return, but they aren’t taxed again here.
A few exceptions:
- Alimony payments may be subject to taxation in France.
- Any French-sourced income (like rent from a property in France) is taxed in France.
So yes, you may hear Americans say, “I don’t pay French taxes.” That can be true — but only if all their income comes from the U.S.
3) Healthcare Contributions: How It Really Works
This is the question that causes the most confusion. Do Americans have to “pay into” French social security for healthcare?
Here’s the straightforward answer:
- If you have a U.S. pension (Social Security, IRA, 401k, etc.):
You can apply for French healthcare (PUMA) after living here for three months. You declare your pension income, but France does not charge social contributions on it. - If you live mainly on investments (interest, dividends, capital gains, rental income):
You may have to pay an annual healthcare contribution, called the CSM, based on that income. - If you’re working in France (even remotely for U.S. clients):
You need the right visa and must register as self-employed. Then you’ll pay French social charges and tax on that income.
For most retired Americans with pensions, there are no extra French charges for healthcare. You still get access to the system once you’re a legal resident.
4) Local Taxes vs. Income Taxes
Don’t confuse France’s property taxes with income taxes.
- Taxe Foncière is paid by property owners.
- Taxe d’Habitation was charged to residents but is being phased out for primary homes.
These are local taxes. They’re separate from personal income tax.
5) Working in France
If you earn money while living here — even if your clients are in the U.S. — France considers that French income.
That means:
- You need the right visa to work.
- You must register as self-employed.
- You pay French tax and social charges on that income.
6) Inheritance and Gifts (The Short Version)
If you live in France long-term, French inheritance rules may apply to your estate. A surviving spouse doesn’t pay inheritance tax, and children have generous allowances. But for many Americans, estate planning remains centered in the U.S. This is one area where it’s worth speaking to a professional before making big decisions.
7) Buying Property in France
Yes, Americans can buy property here. It only becomes your primary residence if you qualify as a tax resident. Otherwise, it’s treated as a second home.
Quick Answers for American Taxes in France
Do I pay French tax on my U.S. Social Security or pension?
No. Those stay taxable in the U.S. You declare them in France, but don’t pay tax here.
Do I pay French income tax at all?
Only on French-sourced income — like rent from a French property, or work you do while living in France.
What about French healthcare — do I have to pay in?
If you have a U.S. pension, you can join the French healthcare system (PUMA) after three months of living here. No extra social charges on pensions. If you primarily rely on investments for your living, you may be required to make a healthcare contribution (CSM).
Can I work remotely for U.S. clients from France?
Yes, but it counts as taxable income in France. You need the right visa, must register as self-employed, and pay tax and social charges in France.
What are French property taxes?
- Taxe Foncière – paid by property owners.
- Taxe d’Habitation – phasing out for primary homes.
These are local taxes, not income taxes.
Will France take my estate when I die?
Not exactly. A spouse doesn’t pay inheritance tax, and children have large allowances. But if you’re a long-term resident, French inheritance rules can apply. It’s best to get professional advice.
Can Americans buy property in France?
Yes. Anyone can buy. It only becomes your “primary residence” if you’re considered a French tax resident.
American Taxes in France: The Bottom Line
France isn’t out to double-tax you. The U.S.–France tax treaty prevents that. For most Americans here:
- U.S. pensions are taxed in the U.S., not France.
- French income (like rent or work done here) is taxed in France.
- Healthcare is available once you’re a legal resident, with contributions only in certain cases.
- Property taxes exist, but they’re not income tax.
The rules are clearer once you see them laid out. Still, every situation is a little different — especially with investments or inheritance. That’s when a good French advisor can help you sort things out.
Living in France is a dream for many of us — but sorting out the practical side, like American taxes in France and healthcare, is part of the adventure. With the right planning (and a little patience for French paperwork), the reward is everyday life in one of the most beautiful countries in the world.
If you enjoy these kinds of deep-dive guides, you’ll find even more stories, travel tips, and practical advice over on my main site: The Barefoot Blogger. That’s where I share the adventures (and misadventures!) of life in France — from lavender fields to local festivals — along with the lessons I’ve learned about making this country my home.
For example: you might enjoy:
- Best Lavender Fields in the South of France.
- Exploring the Charm of Uzès: Market Day at Place aux Herbes
New Feature: Print and Save Your Favorite Posts
Have you ever read something online, thought “this is perfect, I’ll need it later,” and then — poof — it disappears into the abyss of your computer? You try to remember where you saw it, search your email, scroll through your history… and still can’t find it when you need it most.
That’s exactly why the new “Print This” button is at the bottom of each post you receive from the Barefoot Blogger. With one click, you can save or print the article so it’s always at your fingertips — ready to tuck into a travel binder or your “moving to France” folder, no searching required.
Save It. Print It. Keep It Handy.
