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SECOND HOMES

How does the 90-day rule work in France?

All non-EU citizens face limits on how long they can spend in France - and since the beginning of 2021 that includes Brits. Here's what the 90-day rule is and how it works.

How does the 90-day rule work in France?
Long, lazy summers in France now come with a time-limit for British visitors. Photo: AFP

Who does the 90-day rule affect?

This rule is for visitors to France who are not citizens of an EU or Schengen zone country.

The rule has been in place for many years for citizens of several non-EU countries – for example Americans and Australians – but began to be applied to British visitors after January 1st 2021, when the Brexit transition period ended.

British people who were full-time residents in France before December 31st 2020 are not covered by the rule (but do have to apply for a residency card in order to remain – more details here).

British people who have dual nationality with another EU country – for example Ireland – are not covered by the rule, provided they travel using their EU passport.

The main groups affected are tourists planning an extended stay and second-home owners.

How does the rule work?

Not all countries qualify for this, for some countries including India you need a visa for even short stays, but if you are British, American, Canadian, Australian or a New Zealander you are entitled to 90 days visa-free.

The rule states that non-EU/Schengen visitors can spend 90 days out of every 180 in the EU without applying for a visa or residency.

So over the course of a year you can spend 180 days in the EU, but not all in one go. This rules out, for example, second home owners spending the summer in France and the winter in the UK (or vice versa) – your stays have to be divided up into at least two blocks of a maximum of 90 days, followed by 90 days outside the EU.

The other crucial thing to point out is that the 90-day limit applies to the whole EU bloc, not just a single country. So if you had already spent 88 days in France and then George Clooney called and asked you to spend a week with him in his villa on the shores of Lake Como, you would have to turn him down as a trip to Italy would exceed your 90-day limit inside the EU.

This site has a fuller explanation of how the 90-day rule works, as well as a calculator to allow you to work out your visits.

Are there ways round it?

Second-home owners, in particular, may want to spend more than 90 days at a time in their French property – so what are the options for them?

In most cases this will require a visa.

Visa

There are lots of different types of visa available – see more on the topic here – but for people who intend to just take long holidays in France the best option is likely to be the visitor visa.

READ ALSO How to get a visitor visa for France 

You will need to give assurances that you will not be undertaking any professional activity while in France, so this won’t be suitable for people who want to work remotely from their French cottage for a few months.

You will need to provide a lot of personal documentation including details of your financial situation to show that you can support yourself and will not become a burden to the French state, as well as paying for the visa, which is between €80 to €99 depending on the type.

The visitor visa lasts a year and while you are free to come and go between France and your home country during that year, you will need to apply for a new one each year that you wish to spend more than 90 days in France.

Residency  

Second-home owners who wish to spend a significant amount of time in France may consider taking up residency.

This is more than simply declaring ‘I’m a resident’.

READ ALSO French tax declaration – what you need to know

All residents in France are required to complete an annual tax declaration, even if their all their income comes from outside France, and in order to access healthcare you will have to either pay for private cover or register with the French healthcare system.

You cannot be resident of two countries at once, so if you become a French resident you have to give up residency of your home country which has an impact on things like tax and – for Brits – access to the NHS.

British second-home owners who wish to apply for the post-Brexit carte de séjour residency card must have been full-time residents in France before December 31st 2021, and need to apply for the card before September 30th, 2021.

The card comes with its own conditions, see more on those here.

Could the 90-day rule be changed?

Second-home owners from the US/Australia etc have always had to work around this rule, but the post-Brexit change came as a shock to many Brits who had got used to coming and going between France and the UK as they pleased and spending months at a time at their French properties without having to worry about paperwork.

The 90-day rule is an EU rule but it’s possible that France and the UK could come to a separate bilateral deal on this issue in the future.

The UK operates the 180 day rule, where people can spend 180 days per year in the country without a visa or residency and they don’t have to divide them into two 90-day blocks. This has raised hopes that a similar deal could be put in place for France and several campaigns are running to push for this.

While it could become a deal eventually it’s unlikely to be a priority for either government ahead of trade and other contentious issues (as well as the ongoing pandemic and major recessions that all countries will be dealing with over the next few years).

Can’t we just slip under the radar?

In previous years France has earned itself a reputation among non-EU travellers as being not too fussy about the exact exit date of people who aren’t working or claiming benefits, as long as it’s fairly close.

However we would suggest that people don’t rely on this. Unlike the pre-EU days, passports are now automatically scanned when you enter and leave the Bloc, which makes it easy to spot over-stayers.

If you are caught over-staying your allocated 90 days you can end up with an ‘over-stay’ flag on your passport which can make it difficult to enter any other country, not just France, and is likely to make any future attempts at getting visas or residency a lot more difficult.

For more information on residency, driving, healthcare, travel and pets after Brexit, head to our Dealing with Brexit section.

Member comments

  1. Hello, in order to get a carte de sejour and to transfer residency (including tax), is it wise to get a visa first?

  2. I believe there is another way to avoid the 90 day rule but does not appear to be widely known. That is, if a non EU citizen is travelling with an EU citizen and is a close family member (eg spouse) and the period of stay fir the non EU citizen is the same as the family member then those days are not counted towards the 90 day rule.

    Have you seen this ruling ?

    1. Hi John, no, this is not the case. People who have an EU spouse or partner can apply for a spouse visa, or in some cases residency through their spouse, but they cannot stay visa-free for more than 90 days

  3. If you get a 6 month visitor visa how does that affect your 90 days in 180 days for the other 6 months? For example when your French visa expires do you have to wait 90 days before re entering an EU country?

  4. A question….if one is in France…and happens to be booked to exceed the 90 day rule…can they travel to Switzerland and remain for several days and then reenter France…thus lessening their days actually staying in France? Thanks, Gary

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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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