Most people planning a move to France spend their time thinking about where to live, what things cost, and what daily life will feel like. Very few think about taxes before they go. That’s a big tax mistake Americans make when moving to France.
It’s understandable. Most retirees aren’t dealing with complicated finances — a pension, Social Security, maybe some savings. For many people, the tax situation turns out to be manageable. But there’s one reality that catches almost everyone off guard.
You Don’t Leave the U.S. Tax System Behind
Moving to France doesn’t replace one tax system with another. You end up dealing with two. Once you’re a French resident, you’ll generally file a French tax return and a U.S. tax return. The United States taxes its citizens no matter where they live. France taxes you once you’re living there.
For retirees with straightforward finances, this is usually not a problem— with the right support.
The Requirement Most People Don’t Know About
Open a French bank account — and everyone does — and you may also have to file something called FBAR.It’s a report to the U.S. Treasury that your foreign accounts exist. It is not a tax. But it is required if the total across your accounts exceeds $10,000 at any point during the year. That includes checking, savings, and joint accounts.
The threshold is easier to hit than it sounds. The rule is based on the highest balance at any point during the year — even briefly. A temporary transfer can push you over without you realizing it.
For Many Retirees, This Is Manageable
At this point, it can start to sound complicated. For most Americans retiring in France with modest finances, it isn’t. It becomes an annual routine: file in both countries, stay aware of the reporting requirements, and work with someone who understands both systems.
Where It Gets More Complex
The bigger issues arise when finances are more involved. This includes:
• Higher income
• Investments beyond simple savings
• U.S. property with rental income — though this is generally less complicated than people expect
• Large retirement accounts
• Expected inheritances
• Trusts, which require careful handling under both systems
• Alimony, which has specific declaration requirements
• Selling U.S. property after you’ve already become a French resident — the timing matters and can affect how the gain is taxed
• Declaring investment income — using a nationality other than American to do so is not a legitimate option and can create serious problems
In these situations, decisions made before the move can affect how income is taxed and how assets are structured. Some options are only available — or far simpler — before you become a French tax resident. After the move, those same decisions can trigger taxes or reporting requirements that didn’t exist before.
Why Timing Matters
By the time you’ve moved, opened accounts, and settled in, many financial decisions have already been made. That’s why professionals who work with Americans moving to France consistently say the same thing: the best planning happens before the move.
That doesn’t mean everyone needs detailed advice. But if your situation is more than straightforward, it’s worth understanding how the two systems work together before you go, not after.
The Bottom Line
For many Americans, retiring in France works out just fine financially. The mistake is assuming there’s nothing to think about at all. At a minimum, understand three things: you will likely file taxes in both countries; opening a French bank account may trigger FBAR reporting; and some decisions are much easier to handle before the move.
Handled early, this is manageable. Ignored completely, it’s one of the most common sources of confusion for Americans settling into life in France.
A Note on Finding the Right Help
Disclosure: This section is sponsored by Peter Johnson SARL.
When I moved to Uzès, I quickly learned that finding a tax professional who speaks English isn’t optional — it’s essential. My British friends pointed me toward Peter Johnson SARL, a firm that has long been the go-to for both British and American residents in the south of France for exactly that reason. I’ve used them for my French taxes ever since. They won’t replace your U.S. tax consultant — you’ll still need someone handling the American side — but they know U.S. tax law and understand what France requires of American residents. That combination is important to find. And it matters.
