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More French pensioners head abroad to settle

While many expats dream of retiring in France, the French themselves are more and more likely to leave home and enjoy their twilight years abroad, partly due to the sunnier financial climes on offer.

Published: 30 March 2015 17:41 CEST

More French pensioners head abroad to settle

Many French pensioners are heading to sunny Portugal. But not just for the weather. Photo: Shutterstock

While retired Brits head to the south of France en masse to get a bit of sun after of years slogging away, more and more elderly French clearly don’t think their country is sunny enough.

New data released this week revealed that there are now over one million French nationals spending their hard-earned pensions in 180 different countries around the world.

That number accounts for around one in ten of all retired French people.

And the numbers heading abroad are rising year on year. Last year 251,223 retired French nationals moved abroad compared to 225,000 in 2013 – that reflects a rise of 11.7 percent.

So where are they all going?

While most remain in Europe, 44 percent head to Africa with Morocco particularly popular. In Europe Portugal and Spain are the most popular destinations, and further afield, Bali and Thailand are proving attractive too.

According to the site retraite-etranger.fr the French are attracted to politically stable countries where the cost of living is much lower than in France.

Another reason many retirees head abroad is that many have roots or families in those countries.

French pensioners have also flocked to countries with better tax rates on their pensions.

Pensioners in Portugal, for example, can be completely exempt from paying taxes if they fill the right criteria, and in Morocco, they can make tax savings of up to 80 percent.

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Two people hold up their American passports in a European town square

While it is not easy for Americans to retire in Switzerland, it is fortunately not impossible. Here's what you need to know. Photo by Spencer Davis from Pexels

With clean streets, tranquil vibes and low crime rates, Switzerland is a perfect place to retire.

People from across the world have flocked to Switzerland to spend their later years, with American singer Tina Turner, Canadian singer Shania Twain, British musician Phil Collins and Swedish businessman Ingvar Kamprad – of IKEA fame – among the many who have all chosen to spend their twilight years in the alpine nation.

For Americans – or indeed anyone – looking to retire in Switzerland, the good news is you don’t need to be world famous in order to do so.

You will however need to jump through a few hoops.

The rules for retiring differ on the basis of whether you are from an EU/EFTA state or not, with the US, UK, Australia, India and Israel being some of the many examples of ‘third countries’.

If you are not American, click the following link for information on how to retire in Switzerland.

READ MORE: Everything you need to know about retiring in Switzerland

Here’s what you need to know.

How can Americans retire in Switzerland

There are two broad categories of Americans wanting to retire in Switzerland: those who already live here with valid working permits – and those who still live in the United States.

If you worked or are working in Switzerland on a valid residence permit, retirement is unlikely to be difficult at all.

Switzerland has a retirement age of 65 for men and for women. The retirement age for women was raised from 64 to 65 in June 2021.

If you fit into this category, then please check our our extensive guide on pensions in Switzerland.

EXPLAINED: How does the Swiss pension system work – and how much will I receive?

But if you currently do not live in Switzerland/have a Swiss residence permit and would like to retire here, this is still possible.

How can non-residents including Americans retire in Switzerland?

In order to be granted a visa to retire in Switzerland, you need to have:

Adequate financial resources and proof you will not look for work in Switzerland;
A close connection with Switzerland;
You must have Swiss health and accident coverage.

These points are dealt with individually below.

How does the process work?

If you come from outside the EU / EFTA, you must apply for a visa with a Swiss diplomatic/consular mission in your country of residence, i.e. in the United States.

First, they will check that you don’t have any criminal records.

You must be 55 years of age or older to move to Switzerland from abroad in order to retire. The Swiss retirement age is 65.

You will need to demonstrate a close link to Switzerland.

This can be past residency, family ties or even frequent holidays in Switzerland can suffice as evidence of a close connection.

Real estate can be a factor, although keep in mind that owning property in Switzerland is no guarantee of a close connection.

Reader question: Does owning a second home in Switzerland give me the right to live there?

Also, in order to be considered, you must prove that you have enough financial resources to live in Switzerland without having to work or claim welfare benefits.

You do not have to transfer the bulk of your financial interests to Switzerland, although this is likely to help illustrate that you have enough financial resources to move there.

You can transfer your pension to Switzerland provided there’s a bilateral arrangement with your country of origin. More information is available here.

READ MORE: How to get a visa to retire in Switzerland

The eventual decision is made by cantonal authorities and is often highly discretionary.

Tina Turner, who has lived in Château Algonquin in Küsnacht, Zurich, since 1994, is perhaps the most prominent American who has retired in Switzerland.

While speaking a Swiss language is a pre-requisite of citizenship, as with plenty of other things, the authorities appear willing to make exceptions when the price is right or when you’re the honorary mayor of Nutbush City.

Tina Turner and her son Craig in her home in Switzerland. @LoveTinaTurner pic.twitter.com/l8goZQUWSx

— Tina Turner Online (@TinaTurnerNL) June 2, 2018

Turner gave up her American citizenship in 2013 and became a Swiss citizen, despite not speaking German, French or Italian.

Which brings us to…

Money helps grease the wheels

A little-known article of the Swiss law — Article 30 of the Federal Aliens Act — allows wealthy foreigners from outside Europe to move to Switzerland.

Cantons can issue residence permits B to these people, if local authorities deem that there is a “significant fiscal interest” in such a move.

Golden visas: Everything you need to know about ‘buying’ Swiss residency

What exactly does “significant fiscal interest mean?”

This term is defined by each canton.

For instance, the lowest annual tax rate for a non-EU foreigner is 287,882 francs in Valais, 312,522 francs in Geneva, and 415,000 Vaud.

Every year, around 40 to 50 people ‘buy’ their way into Switzerland this way, as reported by TagesAnzeiger, which used the numbers published by the State Secretariat for Migration (SEM).

How much should you save for a ‘comfortable’ retirement in Switzerland?

To maintain the usual standard of living during retirement, residents of Switzerland need more savings nowadays than four years ago, according to an analysis by UBS bank, which compared the pension systems of 24 countries.

In 2017, the last time UBS conducted a similar study, that number was 11 percent.

The new UBS International Pension Gap Index found that “the Swiss pension system still enjoys a high reputation. However, contrary to other countries, it is more difficult to push through urgently needed reforms to ensure this reputation will last”.

Click the following link for more information

READ MORE: How much should you save to retire in Switzerland?

Please note: As with all of our explainers, they are intended as a guide only and do not constitute legal or financial advice. Please discuss any financial decisions with a certified expert in the field.

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