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QUALITY OF LIFE

Revealed: The best cities in France to be a student

Every year, QS best student cities releases its ranking of the world's most student-friendly locations. This year four French cities made the list.

Revealed: The best cities in France to be a student
Photo by Steven Lasry on Unsplash

As a student, some cities are more attractive than others. Each year QS rankings assess 140 cities around the world based on what they have to offer students in terms of their affordability, quality of life, the opinions of former students who studied there, as well as general desirability, employer activity, and how many students live there. 

This year, for the 2023 ranking, five French cities – Paris, Lyon, Toulouse, and Montpellier – made the list, with Paris making the top 10. 

Paris, Lyon and Toulouse have been listed in the ‘best cities’ ranking for several years, but this will be the first year for Montpellier. In order to be included, the population must be a minimum of 250,000 people and the city must be home to at least two universities that have been listed in the QS World University Rankings.

READ ALSO 8 ways to save money as a student in France

This year, France’s cities have moved up in the list. Across the board, two factors improved: “student mix” and desirability. The former measures what proportion of the city is made up of students, as well as the diversity of students and the inclusivity of the city and country for students, while the latter measures general questions like safety, pollution, and how appealing the city is to respondents.

On the other hand, affordability and “student voice” – the rating students gave the city’s friendliness, sustainability, diversity, etc, as well as how many students continue to live there after graduation – went down this year. However, affordability has decreased across the board in student cities around the world. 

France’s cities

Paris – The French capital came in 8th place worldwide and remains an extremely attractive destination for potential students. Paris is home to nine institutions ranked on the QS World University Rankings, and scored well with employment prospects.

The city came in seventh place for “employer activity” this year. The ranking said this is due to Paris graduates being “highly respected by employers” and that “there are lots of international firms based in the city’s business district which frequently hire skilled graduates.” In the student survey, the prospect of being surrounded by “beautiful monuments, history and culture” was appealing, as well as Paris’ nightlife. 

READ ALSO These are the culture shocks you will experience as a foreign student in Paris

Lyon – The gastronomy centre of France ranked 45th in the world, scoring well in terms of “student mix” and affordability. Lyon was credited for low tuition fees for international students. In surveys, students reported enjoying the ‘diversity of students from across the world’ in Lyon.

Toulouse – La ville rose in France’s south west moved up eight places in the ranking this year. Making it into the top 100, Toulouse came out at 78th. Toulouse was praised for its cost of living, as the city offers significantly lower average costs for rent – for example, a one bedroom apartment in the city centre an average of €712 per month, compared to €1,410 in Paris.

Montpellier – This year was Montpellier’s debut on the list, ranking 199th. The city performed well for its first year, especially in terms of affordability – ranking 35th.  

What about the non-French cities?

An overall trend is that cities are becoming less affordable for students.

In terms of rankings, London, held onto its first place spot, which it has had for the past four years, while Seoul and Munich tied for second place. The other European cities to make the top 10 list were Zurich (4th) and Berlin (6th). 

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LIVING IN FRANCE

Are Canadian pensions taxed in France?

If you are considering retiring to France, you might be wondering whether you will still be able to access your Canadian pension and if it will be subject to French taxes. Here is what you need to know.

Are Canadian pensions taxed in France?

Before going any further, it is worth noting that this article is meant to give an overview of the pensions situation for people with Canadian pensions. It does not replace professional financial advice, and Canadians looking to retire in France should still seek out expert financial assistance as needed.

The first step is to determine whether or not you are a tax resident in France (you can look through our guide). All tax residents must fill out a yearly tax declaration, and they must report all global income, even if it is not subject to tax in France. 

You should also consider if you have a pension from another country besides Canada, as different rules may apply based on that country’s bilateral tax treaty with France. Here is the situation for British, American, and Australian pensions, and here is an overview of the system.

Where is my pension taxed?

In Canada, the pensions system includes multiple tiers of public and private schemes, but luckily the double tax treaty between Canada and France is explicit about where pensions are taxed.

The Local spoke with Isaac Barchichat, a registered CPA in France, Canada and the USA to understand the situation for Canadians in France. He is a managing partner at Monceau CPA, an international accounting firm based in Paris with offices in the US and Canada.

He told The Local: “Tax treaties usually follow the OECD model, which means that Article 18 is usually focused on pensions.

“Article 18 for the Canada-France treaty is very similar to the USA-France treaty. This means that pensions are taxed in the country that they are issued in,” he said.

As a result, any Canada-based pension – whether that is the Old Age Security plan, the CPP (Canada Pension Plan) or QPP (Quebec Pension Plan), or a private personal or employer plan (such as Registered Retirement Savings Plans, or RRSPs) – would be taxed in Canada, not France.  

Barchichat explained that Canadians in France should still declare their pension income in France. Like Americans, they will receive a tax credit from France attesting that they have already paid tax in Canada on their pension.

“People should still maintain proof that the pension was already subject to tax, in case of an audit,” he added.

Barchichat also recommended that Canadians resident in France can make use of the ‘mention expresse’ section in their French tax declaration.

“Sometimes French local tax authorities fail to assess foreign income properly. Using the ‘mention expresse’ allows you to specify to French tax authorities Article 18 from the tax treaty to ensure that they process your documents properly,” he advised.

All of this being said, Canadians should beware that their pension income could still count towards your total household income in France, even though it is not taxed here. As a result, it could end up pushing you into a higher tax bracket.

What about social charges?

In addition to taxes (impôts), France also requires people to pay social charges (prélèvements sociaux) on income. However, only specific types of income can be considered for social charges, such as the CSM charge (PUMa) for healthcare. 

The general rule is that pensioners and their spouses do not have to pay the CSM charge, but France specifically exempts people who have a pension from France, the EU, the EEA and the UK (people with S1 forms), as well as their non-working spouses.

There is some debate over whether American and Canadian private pensions ought to be treated as a pension (and therefore exempt from CSM) or as investment income (which can attract CSM charges). 

When it comes to Americans, tax expert Jonathan Hadida from HadTax told The Local: “Under the principle of equality amongst taxpayers, URSAAF has treated most US pensions/IRA distributions/401(k) distributions akin to a French/Swiss/European pension and have therefore exempted Americans with pension income.”

“I have called URSSAF, and I was told by the representative that they should be paying for PUMa. But in practice, I have not seen many American pensioners charged for it.”

It is likely that similar standards are applied to Canadians. 

Barchichat, who is licenced in both the US and Canada, said that in his opinion neither American nor Canadian pensioners should be charged for prélèvements sociaux

“If this happens, it is a mistake by tax authorities”, he added. You can learn more about contesting a CSM charge here.

READ MORE: Cotisations: Why you might get an unexpected French health bill

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