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What changes under France’s new immigration law for foreigners in France?

Headlines on France's new immigration bill have headline-grabbing measures like expelling radicalised Islamists - but the bill does contain things that may affect the life of foreigners living in France.

Published: 24 November 2023 10:25 CET
Updated: 27 January 2024 10:51 CET

What changes under France's new immigration law for foreigners in France?

France's immigration bill contains several measures that would affect how foreigners in France get residency cards. Photo by PASCAL LACHENAUD / AFP

France’s immigration bill has created a lot of political drama, but its long and rocky journey finally came to an end on Thursday when the Constitutional Council – the highest authority on constitutional matters – delivered its verdict on the bill.

There is no right of appeal against the Council’s decisions.

Here are the main parts of the bill that will affect foreigners who are already living in France – if you’re planning a move you can find information here and information for second-home owners here.

Residency cards

Most of the sections of the bill that affect foreigners in France are to do with the carte de séjour residency card – this only affects non-EU citizens living in France. People who have citizenship of an EU country can live in France without a residency card, and there are no plans to change that.

Several aspects also concern obtaining a long-term card, which usually happens after four or five years of residency, depending on your personal situation – people who already have a long-term residency card such as the carte de séjour pluriannuelle or carte de résident will not be affected by the changes. Brits who were living in France prior to 2022 and have the special Brexit carte de séjour are also not affected.

Here’s a look at the proposed changes to the residency card system;

Language tests and levels – In an effort to increase French language standards and better integration of foreigners into life in France, people applying for multi-annual residency cards, 10-year cartes de résident (including the résident longue durée UE), and French nationality will need to prove higher levels of language acquisition than previously.

According to a press release issued by the interior ministry on Friday evening, these new standards will bring France “closer with our European neighbours such as Germany, the Netherlands, Austria, Italy and Portugal.”

Moving forward, those switching onto multi-annual (pluriannuelle) carte de séjour for the first time will need to demonstrate a minimum level of French, which will be A2 according to the international DELF scale, rather than A1 as previously reported.

It is worth noting that the pluriannuelle card is usually acquired after at least one year on a short-term residency card.

This level corresponds to “carrying out simple tasks of daily life (going to a shopkeeper, finding information, taking public transport, etc.); using the most common polite and exchange expressions; recounting a past event; understanding a simple conversation; talking about things one likes and dislikes; describing daily life; understanding directions; and connecting sentences using ‘and’, ‘but’ and ‘because’.”

Several groups are expected to be exempt from this requirement, including those holding a ‘carte de séjour temporaire’ with the title ‘student’, ‘visitor’, or ‘family and private life’.

The requirement also does not apply to Brits who are covered by the Withdrawal Agreement and have the post-Brexit residency cards.

To obtain a 10-year carte de résident (or résident longue durée UE, available after five years’ consecutive residency) for the first time, foreigners will need to prove a level of B1, rather than A2 which was the previous level required. Currently, those switching onto the 10-year card can show a diploma or language certification as proof.

The Local has contacted the French Interior Minister to clarify how this information will be collected in the future.

QUIZ Test your French language level on the A1 to C2 scale

As for applying for naturalisation, the interior ministry announced Friday that the language level requirement will be increased from B1 to B2.

Currently, applicants have several ways to show B1 level, including a DELF or TCF test result or graduating from a university programme taught in French.

Requirement to ‘respect the values of the republic’ – applying for any kind of residency permit (long or short term) will require agreeing to ‘respect the values of the French republic’.

Those values are defined in the law as “personal freedom, freedom of expression and conscience, equality between women and men, the dignity of the human person and the motto and symbols of the Republic as defined in article 2 of the Constitution”.

It will also make it possible to refuse, withdraw or not renew certain residence permits for new reasons linked to a person’s behaviour (a law that is largely intended to target foreigners who have become radicalised – such as radical Islamists).

Easier expulsion – the law will also make it easier to expel foreigners who do not respect the values of the republic, including by limiting the right of appeal against an OQTF (Obligation de Quitter le Territoire Français – order to leave the country) and removing the exemption that people who arrived in France aged 13 or younger cannot be expelled.

Limits on short-term residency card renewal – the Conseil Constitutionnel left in the proposal limiting the amount of times you can renew a short-term (one-year) card. The idea is to prevent people from avoiding the language requirement by simply never moving onto a multi-year card, instead continuing to annually renew their short-term one.

This means that people on short-term cards would only be able to renew three times. Afterwards, they would have to switch onto either a pluriannuelle card or a carte de resident.

However, several groups will be exempted from this requirement, most likely including visitors and students. More information to come.

Rejected clauses

The Constitutional Council rejected many of the headline-grabbing amendments that were added at a later stage by right-wing parties – these included limits on benefits access and citizenship for foreigners, as well as tighter rules on family reunification.

When does the new law come into effect?

Now that the law has cleared its final legal hurdle, it is up to the government to decide when it comes into effect.

It has the option of either introducing the law in stages or bringing in new parts all at once – it is expected that at least some of the parts of the law will be introduced by the middle of 2024.

We will update our site as soon as we know more.

If you have questions on how the law will affect foreigners living in France you can email [email protected] and we’ll do our best to answer them

Member comments

Anonymous - 27 November 2023 at 17:44 CET

Could the Assemblee re-ratify the testamentary rights of resident foreigners under Brussels IV, avoiding one or more of the inevitable complications, delays, costs, family squabbles. which would lead from the current requirement for Notaires to notify all inheritors under French law about their full rights, whatever limitations may have been imposed under a foreigner’s will under the provisions of Brussels IV?

Become a Member to leave a comment.

6 pension questions British people should ask before retiring to France

Retiring to France is a dream for many, but before turning that dream into reality there are some serious financial questions that you need to ask yourself to ensure that your retirement is a financially comfortable one.

For most retirees, their main or only income will be a UK pension, so it’s important that you understand how your pension will work once you make the move.

There are some specific rules and restrictions on taking pensions out of the UK, while there is also the question of how UK pensions interact with the French tax system.

Financial adviser, Maeve Hoffman, from Spectrum IFA Group, emphasised that people should not take these decisions lightly, telling The Local: “Figuring out what to do with your pension should be part of your wider financial plans for your life.

“This may be your most important asset, besides your home, and the best answer for what to do with your pension is highly individual. There are no sweeping generalisations when it comes to advice on private pensions. Everyone’s situation is different,” she said.

This article is intended as an overview of how the system works for UK pensioners and is not intended as a substitute for individual financial advice. The article is aimed at people who have worked most or all of their career in the UK and then intend to retire in France – the situation is slightly different for people who work in France and then retire here.

You can find an overview on French tax rules for pensions HERE.

Long-term or short-term

The first thing you need to carefully consider is whether or not your move to France will be for the long-term or short-term.

When it comes to your UK pension, there are some options that may be advantageous for French residents looking to stay here permanently, but they could make your life very complicated if you end up returning to the UK in the future.

Do not be afraid to ask yourself the tough questions – is there any chance you will have grandchildren in the future that you will want to be geographically close to? Have you ever spent a significant time in France, aside from short holidays? Do you have roots in France, such as friends, family or a home? If your health deteriorates, will you want to be cared for in France or the UK?

If are unsure about the answers to these questions, then take some time to really think about them. There are alternatives to permanently moving to France if you are unsure – for example, you could spend a few months a year here on a short-term visitor’s visa.

Understanding the different tax rules

British retirees should be aware that the UK and France have very different tax systems.

Once you become a tax resident in France, you have to file a yearly declaration, including your global income. The country that gets to tax that income is determined based on the tax treaty between the UK and France, which seeks to eliminate double-taxation.

As for your UK-based pension, the treaty states that if you have a UK government or civil service pension (eg a state school teachers’ pension), then this will remain taxable only in the UK. Some old NHS pensions were considered ‘government pensions’, but modern ones might not be. You can check if your pension is classified as ‘government’ here.

You still have to declare this income to the French tax authorities, but you will not be subject to tax in France on it. That being said, it will count towards your total household income, and could end up pushing you into a higher tax bracket which is something you should carefully consider, particularly if you want to take a large sum at once.

The same is not true of private pensions: these are taxed in France, not the UK, as soon as you become a tax resident here. Confusingly, the UK state pension is also considered a private pension, even though it is paid by the government.

You can find a complete guide to how UK pensions are taxed in France HERE.

As a result, you will want to think about whether your previous plans for your private pension were only advantageous to you as a UK resident. Once you become a French tax resident, they could have unforeseen implications.

You can find more information about tax rates in our tax guide.

Get reliable, expert financial advice before doing anything

If you have decided you want to be in France permanently, then you will need some expert tax and pension advice – but you need to be careful who you take advice from, this is a highly specialist area and it’s unlikely that high street financial advisers will have the knowledge that you need.

Brexit has also made getting financial advice more complicated, with fewer experts available.

Maeve told us: “Because of Brexit, you cannot use a UK-based financial adviser anymore – you have to use an EU-registered one. This has made things more complicated. When picking an adviser, seek out someone who has expertise on the local taxation rules in France. They should also be regulated with the financial regulator where you live and where they work.”

It can be especially complicated to parse out who you can and cannot take advice from – for example, some UK-based advisers have continued to give advice to EU-based clients, even though this can be particularly risky if the investments they recommend do not follow EU regulations.

There are also expat-oriented financial advice services that are located outside of France, but seek to offer tax advice to people in France.

She added: “Be smart and sensible. If you choose an adviser in Dubai or Spain for example, you will now be adding another regulatory organisation into the mix, plus another language.

“There are free, government-based services in the UK that can help you understand your private pension – Pension Wise and Money Helper. Before doing anything, you should consult the free services. Any financial adviser worth their salt would recommend this too.

“These services have begun to have longer wait times, so be sure to book well in advance of when you plan to draw from your pension.”

Deciding whether to transfer your pension

Another question that is important for Brits to think about is whether or not to transfer their pension into either a UK-based SIPP for non-residents, or a QROPS (Qualifying Recognised Overseas Pension Schemes).

The SIPP will keep your pension in the UK, while the QROPS moves it out of the UK, to Malta specifically.

These options can be helpful for French residents, but you need to familiarise yourself with their benefits and drawbacks.

“The QROPS is not for someone who is unsure of their future in France, as if you return to the UK within five years of the pension transfer HMRC will seek their tax back as if it was a full encashment,” Maeve said.

In France, a QROPS is considered a trust, you may also have additional reporting requirements to fill out along with your annual declaration (more info here).

You should beware of scams on this subject, as the post-Brexit period saw many scammers seeking to persuade Brits that it was now mandatory to transfer their UK pension – always be wary of any cold-calling or unsolicited financial advice.

Determining how you will want to draw from your pension

The next question is how you want to receive your pension – either as regular income or as a lump sum. The option that you chose will have tax implications in France.

If you receive it as a regular income, when doing your yearly French tax declaration, you will add up your pension income for that year and you will be taxed at the normal marginal rates for income (the barème). These rates go up to 45 percent (for the highest earners only) plus social charges if they apply (more on this below).

Pension income can also benefit from a 10 percent tax deduction, as long as it does not exceed €4,123 or fall below €422 per household.

Lump-sums are more complicated. Technically, French tax authorities would allow a return of once off pension capital to be taxed at a flat rate of 7.5 percent.

But in reality, Hoffman explained that anyone seeking to do this would need the express, written confirmation from French tax authorities that this rate will be applied.

She also explained that the type of private pension matters when seeking to get the lump-sum flat rate.

“There are plenty of different types of private pensions in the UK, but the old ‘defined benefit schemes’ have been the gold-plated standard. These are the types of pensions that give you a portion of your salary for the rest of your life.

“In principle, you should be able to take out lump-sum of 25 percent of your ‘defined benefit scheme’ pension and be taxed at the 7.5 percent flat-rate. That being said, some people get refused, so you cannot make any assumptions and you need clarification from the French tax office.

“As for all of the other types of private pensions in the UK, like the money purchase or personal pension schemes, these are considered to be ‘funds’. If you want to benefit from the lump-sum then you would have to take out the entire pension. You would not be able to just take out 25 percent and get the lump-sum rate.

“For anyone considering taking their whole pension and seeking to use the 7.5 percent rate there are conditions to be met, so I advise people to write to their French tax office and explain their own situation in detail. Be sure to clarify the tax rate you are seeking to have applied and ask what documents they would need from your UK pension company to confirm that the contributions to this pension have been tax deductible.”

Healthcare and social charges

Deductions in France come in two types – impôts (income taxes) and prélèvements sociaux (social charges).

People who retire to France (and have never worked in France) and have already reached the state pension age can apply for the S1 – this means that the UK continues to pay for their healthcare costs and they would not be charged prélèvements sociaux. Non-working spouses of an S1 holder can also benefit from this.

People who take early retirement and make the move before they reach state pension age may have to pay social charges in addition to taxes until they reach the state pension age and can apply for their S1. However, there are several exemptions to social charges, so even if you expect a bill, you may not end up being charged. More information in our guide.

Social charges help pay for a lot of services from the French government, including access to healthcare. In France, you can access the state healthcare system (and get a carte vitale) after three months of residency.

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

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