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RESIDENCY PERMITS

Explained: The difference between French residency and citizenship

As a foreigner in France you enter a complicated world of bureaucracy, but one question we are asked a lot is the difference in status between residency and citizenship. Here's an overview.

Visitor, resident or citizen of France?
Visitor, resident or citizen of France? Photo: AFP

Broadly the difference is this – citizenship gives you a lot more rights but is consequently harder to get hold of.

Here’s a look at how the different categories work:

Non-resident visitor

This category covers everything from people having a long weekend in Paris to those doing short-term work in France or second-home owners.

You can visit without becoming a resident, but your length of stay is limited. For citizens of countries including the UK, USA, Australia, New Zealand and Canada this limit is 90 days in every 180.

If you’re the citizen of an EU country you are not constrained by the 90-day limit, while citizens of certain countries – including India – need a visa even for short visits. 

READ ALSO How long can you stay in France without becoming a resident

The upside of this is that for most people there’s no paperwork, but you don’t have any legal status or right to stay in the country – or enter it if the borders close.

You also won’t have access to healthcare if you need it while you are here so will need to make sure you are covered via health insurance or – for EU citizens – the European Health Insurance Card (UK nationals have their own version known as a GHIC). 

Residency

This means that you are officially allowed to live in France and the requirements for being a resident vary according to the country that you come from.

Citizens of EU countries and those within the Schengen zone benefit from European freedom of movement, which means they are entitled to move to France to live and work. This freedom is not completely unlimited – there are conditions around criminality and minimum income level – but is fairly generous.

France is unusual among European countries in that it doesn’t require EU citizens to register – most other European countries require Europeans to register their residency after a certain period in the country.

However if you intend to make France your permanent home you do need to register in the health system to get a carte vitale health card and make an annual tax declaration.

People who are not citizens of an EU or Schengen zone country – known as Third Country Nationals – have more hoops to jump through before they can become residents.

For most non-Europeans, moving to France involves first getting a visa and then registering for a residency card, known as a carte de séjour. The visa process can be both complicated and expensive and varies depending on your reason for coming to France – you can find out more about the process HERE.

READ ALSO How much money do I need to get a visa for France?

British nationals who were resident in France before the end of the Brexit transition period (December 31st 2020) were given a fast-track system to residency, but Brits who arrive in France after that date need a visa – find out the visa requirements for Brits HERE.

Once you have your residency in place this gives you the right to stay here – with limitations.

You can stay in accordance with your paperwork, so if you have a one-year visa you can stay for a year of if you have a five-year carte de séjour you can stay for five years. You can usually extend your visa/carte de séjour but you have to make fresh applications each time and it’s not automatic that you will be granted a new card or visa.

If you commit certain types of crime you can be removed from the country, while other crimes will mean getting a new visa or carte de séjour becomes more difficult.

EU citizens have the right to vote in local and European elections (but not presidential ones) while non-Europeans have no voting rights.

Certain types of jobs are reserved for French citizens only, while others – especially within public administration – are reserved for EU citizens only. Non citizens cannot stand for president, but EU citizens can stand as candidates in local elections.

Fancy leading France one day? Being born abroad doesn’t rule you out, but you will need to get French citizenship before you begin your bid for the presidency. Photo: AFP 

Citizenship

This is the gold standard and once you have become a French citizen you are, officially at least, exactly the same as French people who were born and bred here.

READ ALSO 10 reasons why you should consider becoming French

You are entitled to stay here for the rest of your life, even if you commit a serious crime (citizenship can be revoked in extremely rare cases, usually linked to terrorism), and you can pass your citizenship on to your children. You can also leave the country for as long as you want and return to live without having to fill in extra paperwork.

You are entitled to vote and – in good news for those with political ambitions – you can stand for any type of office including the presidency, since France has no requirement that presidential candidates be citizens from birth.

But the flip side of this is that citizenship is not easy to obtain.

If you don’t have French parents then the most common ways to obtain citizenship are through marriage to a French person or through residency. You are also entitled to citizenship if you serve in the French Foreign Legion but it’s fair to say that’s not an easy option.

You can find out more about how to gain citizenship HERE but you need to fulfil a number of criteria including having lived in the country for five years (or being married for four years if you are applying through marriage), a minimum level of French language and a thorough knowledge and appreciation of French values and culture.

QUIZ Do you know France well enough to become French?

The application is not a quick process – the average time is 18 months to two years – and involves a lot of paperwork. If original documents are in English you may have to have them translated into French and you will need to pay a certified translator to do this.

If you satisfy all the requirements and once your paperwork is all processed you are presented with your citizenship in a special ceremony and sing La Marseillaise.

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AMERICANS IN FRANCE

Americans in France: Will my tax situation change if I get French citizenship?

If you're thinking of applying for French citizenship, then you might be curious whether there will be any tax ramifications to becoming a dual national.

Americans in France: Will my tax situation change if I get French citizenship?

Gaining French citizenship can have plenty of benefits for Americans living in France, from the right to vote in French elections to freedom of movement in the EU – as well as a more intangible sense of belonging in the country you now call home. 

However, Americans living abroad always have to contend with the United States’ system of citizenship-based taxation, which requires US nationals to report their global income to the IRS yearly, however long they have been out of the country.

This may result in making two tax declarations every year if they move to a country – like France – which requires yearly declarations from all residents.

As a result, Americans have to think about possible tax consequences before making decisions to move, invest, or perhaps take on a second nationality.

To help answer the question of whether there are special tax ramifications for French-American dual nationals living in France, The Local spoke with tax expert Jonathan Hadida from HadTax.

Hadida said: “There is really no impact. You still have yearly reporting requirements to both countries, and from the French side you will still continue to give you the benefits of the tax treaty”.

Key items, such as your US-based pension, would continue to be taxed in the US and not France regardless of whether or not you take on French nationality too.

READ MORE: Ask the expert: What Americans in France need to know about 401(k) and other pensions

Unfortunately, many of the limitations Americans in France experience would also remain in place. French investment options, such as the Assurance Vie, would still unwise for dual nationals, as the IRS sees them as PFICs (Passive Foreign Investment Company).

While the Assurance Vie is a great tool for being tax efficient for non-Americans, and can offer alternatives to the regimented, traditional French inheritance process, for Americans living in France (including those with dual nationality) it can lead to lengthy and complicated dealings with the IRS. 

“To the US tax authorities, you are still American first, second, third and fourth place. They don’t really care that you are also French,” Hadida said.

“The only real change to your tax situation would be giving up your American citizenship, but keeping your US citizenship in addition to French citizenship does not really change anything.”

What happens tax-wise if I renounce my American citizenship?

Renouncing US citizenship is not as simple as scheduling an appointment at a US embassy or consulate, paying the applicable fee, and declaring that one does not want to be American.

There are several factors to consider, and depending on your situation, in the long-run it might be more advantageous to hold onto your US citizenship to continue benefiting from certain parts of the US-France dual taxation treaty (PDF).

For others, keeping US citizenship might be onerous with its yearly reporting requirements, as well as the difficulty it can pose with putting money into French investment vehicles due to citizenship-based taxation and FATCA (US legislation that passed in 2010 to track money laundering). 

While renouncing your American citizenship undoubtedly pushes you further out of the reach of the IRS, you should consider that you might owe an exit tax, if you are deemed a ‘covered expatriate’. Usually, this is only required of high-net worth individuals (worth more than $2 million).

According to the US expat tax site 1040 Abroad, this also includes people who failed to comply with tax obligations in the five years preceding their renouncement, as well as people who had “an average annual net income tax liability exceeding a specified threshold” (as of 2022, this number was set to $178,000).

People renouncing US citizenship can also be subject to a special inheritance tax on gifts made to US citizens or residents, following their renunciation. 

READ MORE: How to renounce American citizenship in France – and why you might want to

You should also think about your US-based investments.

“You would no longer benefit from the tax treaty in the same way if you give up your US citizenship. For example, Article 24 of the treaty covers investment income, making it taxable in the US and giving you a deemed credit in France.

You would lose this benefit if you renounce, and this could make a big difference if the taxation level is lower in the US, as it often is with dividends or capital gains.

“Your IRA and pension plans will continue to be taxed in the US because this is based on where the pension is earned, not nationality, but you might have to start filing a non-resident tax return to the US after renouncing citizenship,” Hadida said.

The tax expert said that renouncing citizenship should be decided on a case by case basis.

“Every situation is different, and for some people it might not make sense to give up certain benefits from the US-France tax treaty. You should speak with a financial advisor before deciding”, he said.

READ MORE: Divorce, stress and fines: How citizenship-based taxation affects Americans in France

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