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POLITICS

‘A National Front pamphlet from the 1980s’ – What’s in France’s controversial immigration bill?

Here's the latest on France's controversial immigration bill.

'A National Front pamphlet from the 1980s' - What's in France's controversial immigration bill?
French Interior Minister Gerald Darmanin speaks during a session of questions to the government at The National Assembly in Paris (Photo by Bertrand GUAY / AFP)

French politicians debated it late into the night on Monday and discussions are due to resume on Tuesday with the government reportedly determined to reach a deal. 

The unexpected torpedoing of their flagship immigration bill has led to a crisis for Emmanuel Macron’s government. Most media reports have been focusing on the political fallout.

But foreigners living in France, those hoping to move here some day and second-home owners might have more practical concerns, such as how the bill’s success or failure will affect their own lives or plans. 

From language tests for residency cards to a tightening of citizenship rules and a special visa exemption for British second-home owners, the various forms of the bill can significantly affect people’s lives.

Where are we now?

Last week Monday, MPs in the Assemblée nationale voted in favour of a Motion de rejet – which means the bill was rejected before debates could even begin.

However, the Macron government is reportedly determined to get it passed and opted for a rare parliamentary procedure known as a Commission mixte paritaire (CMP).

This is a committee made up of both MPs and Senators whose role is to make alterations to the bill to come up with a compromise that would be accepted by both houses of parliament.

The CMP met on Monday evening – although negotiations had been going on behind the scenes for a week – and debated until past midnight without reaching a compromise. Discussions are due to continue on Tuesday morning.

What does that mean for me?

At this stage we don’t know exactly what compromises the CMP will come up with, but analysts say that the political composition of the CMP means that the revised bill would likely be more right-wing than the original, with tougher measures against immigration. 

The CMP’s debates are private, but the reaction of politicians on the left suggests that measures being debated are indeed more rightwing – the Communist senator Ian Brossat described it as “like a National Front pamphlet from the 1980s” while Jordan Bardella of the far-right Rassemblement National described it as an “ideological victory” for his party.

It’s likely that there is an element of hyperbole to both statements, however.

The original bill attempted to take a ‘something for everyone’ approach with appeals to the right such as easier expulsion of radicalised foreigners and language tests for long-term residency cards alongside appeals to the left such as the amnesty for undocumented workers in some sectors.

It ended up, however, pleasing no-one. 

Language tests for foreigners – in the original bill perhaps the most far-reaching clause for people already here was the idea of compulsory language tests in order to secure a long-term carte de séjour residency card – you can read full details of the proposal HERE. This seems likely to remain in the bill. 

When the bill passed through the Senate there were several amendments added that could also affect people planning to move to France, as well as second-home owners. Most of these were junked when the bill passed back to the Assemblée nationale, but it’s possible that some or all could now be revived by the CMP. 

Immigration quotas – another Senate suggestion is the idea of an annual quota on migration, which would be set by parliament. Little detail has been provided on this at this stage.

Limits on short-term residency card renewal – we mentioned above the idea of language tests in order to get a long-term residency card. The Senate has proposed an amendment to limit 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 the long-term card, instead continuing to annually renew their card.

Limit family reunification rights – rules around foreigners in France being joined by spouses or family members would be tightened up, with a minimum stay of 24 months required before you can be joined by a spouse or family member. The Senate also proposed stricter financial requirements for people who want to bring a spouse or family member to join them, although there is little detail on the amounts required.

French citizenship for children born in France – currently children who are born in France to foreign parents are automatically given the right to French citizenship once they reach 18 under the droit du sol principle (although in order to do anything practical like get a passport or ID card they still need to apply for a naturalisation certificate). The Senators proposed that this no longer be an automatic right and children must “express their will” to get citizenship – presumably through an extra admin procedures.

Benefit restrictions – currently foreigners in France can qualify for benefits such as housing allowance or certain family benefits after they have been resident for six months, the Senate wants to increase the qualification period to five years.

Healthcare restrictions – this would affect only those who end up in an ‘irregular immigration situation’ by not having the correct paperwork. People who arrive on a visa or residency permit are entitled to register in the French public health service after three months. Currently undocumented foreigners who are in France for more than three months are entitled to basic healthcare under the Aide medicale de l’Etat, with costs reimbursed by the State for hospital treatment and medication. The Senate amendment proposes a complete ban on this for anyone who is undocumented or in an irregular immigration situation – this is a major red line for politicians on the left or the centre. 

And what about visa exemptions for second-home owners?

The Senate also added an amendment to ease visa conditions for second-home owners. The amendment that ended up being adopted was a curious one – it covered only British second-home owners and proposed a complete exemption to visa requirements for Brits who own property in France – you can find full details here.

This was also junked when the bill came back to the Assemblée nationale with MPs arguing that it promotes inequality to offer a visa exemption to people based purely on wealth. It’s possible that it could come back, but it seems unlikely that it will be at the top of the priority list of the CMP as they grapple to come up with a compromise acceptable to all. 

So what next? 

If the CMP does manage to agree on a revised bill, it will still need to be debated and passed in the Assemblée nationale, so there are still no guarantees that any of this will become law.

The government hopes that an agreement will be reached on Tuesday, and the vote could take place on Tuesday evening, although this may be optimistic. 

We feel safe in making two predictions, however – the first is that most of these clauses outlined above will be largely drowned out in the public and political debate by more headline-grabbing issues such as the expulsion of radicalised foreigners and the amnesty for undocumented workers.

The second is that we haven’t heard the last of this. 

Member comments

  1. As an American second home owner, it is not clear to me why there’s support for a special visa for second home owners of British nationality, and not for second home owners of other nationalities outside of the EU. It seems counter intuitive to be exclusive with regard to country. Canadian second home owners would seem to be in la même bateau. A piece about the rationale for the « British » distinction, at some point, would be of interest.

  2. I’m just coming up to two years in France, having moved here with my German wife from the UK. If there’d been a 24 month delay in being able to do so, I wouldn’t have been able to move to France. For a start, we’d sold our house in the UK, so I’d have had nowhere to live!

  3. I submitted a request for a carte de dix ans three months ago in September 2023, was given a récépissé (valid for six months from my application date), and have yet to hear from the prefécture. Does this debate affect applicants like me, a U.S. citizen with a second home in France; in other words, has my application been stalled pending the outcome of this debate or would it be going through the existing process? Your website helps me to stay connected with France when I’m not there.

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For members

BRITS IN FRANCE

6 pension questions British people should ask before retiring to France

If you're British and thinking of retiring to France there are some important questions to think about before you make the move, and before you make any decisions about your UK pension.

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.

READ MORE: Reader question: Can I retire to France and open a gîte?

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. 

READ MORE: EXPLAINED: The rules on tax residency in France

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.

READ MORE: Ask the expert: How to avoid pension scams when you retire to France

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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