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What to do if you have missed France’s Brexit residency deadlines

Since Brexit, there have been big changes for Brits living in France, and the French government has put in place a number of deadlines for paperwork - with those deadlines now passed, what should you do if you missed them?

Published: 21 January 2022 16:41 CET

What to do if you have missed France's Brexit residency deadlines

Photo: Oliver Hoslet/AFP

The Brexit Withdrawal Agreement guaranteed that Brits already legally resident in France before the end of the Brexit transition period (December 31st 2020) could stay here.

There was, however, an important caveat – those who were resident had to apply for a new post-Brexit residency card in order to regularise their status.

Brexit Withdrawal Agreement – what is it and does it cover me?

This applied to everyone – even people who had previously held a European carte de séjour residency card, people who have been here a long time, and those married to French nationals.

Those who previously had residency rights through a British family member (eg an American on a spouse visa connected to their British spouse) must also apply for the new card.

There were only a very few exceptions;

Under 18s (who must apply once they turn 18)
Brits who have dual nationality with France or another EU country
In certain circumstances, diplomats or posted workers are exempt

The deadline to have applied for the new post-Brexit residency card was September 30th 2021, and the deadline to be in possession of the card was January 1st 2022. Those living in France without the card are considered to be living in France illegally.

But if you’re reading this article with mounting horror and realising that you missed the deadline, what should you do?

It depends on your circumstances;

The online portal set up to deal with post-Brexit residency applications is now closed, but there are two groups who can apply directly to their local préfectures.

Under 18s – a residency card is only required for over 18s. But British children who were living in France before December 31st 2020 are entitled to apply for the post-Brexit residency card as soon as they turn 18.

The application is done directly to their local préfecture and requires only ID documents and proof that they were in France before December 31st 2020, such as a school enrollment card.

Family members – Brits who were living in France before December 31st 2020 have the right to be joined later by close family members, including spouses or partners.

This application is done directly at the local préfecture and requires proof that the relationship began before December 31st 2020 – this needs to be legal proof so we’re talking things like marriage certificates, rather than holiday snaps. You also need proof that the partner/family member is covered by the Withdrawal Agreement and has their post-Brexit residency paperwork.

You can find more detail HERE on paperwork requirements.

Others

If you don’t fall into one of the above categories, you were living in France before December 31st 2020 and you don’t have the new post-Bexit carte de séjour residency card then the likelihood is that you are now an undocumented migrant and could be committing an immigration offence.

Already applied

If you have applied for your status but don’t have the card, then you need to contact your local préfecture as a matter of urgency. If you have proof that your application was made before the deadline then you won’t be in any legal trouble, but you do need to chase up your application and get the card as soon as possible.

The great majority of the roughly 200,000 applications received have now been processed, but there have been some administrative glitches where people’s applications have been lost or – in the case of people who applied on the no-deal portal that was briefly live in October 2019 – not correctly transferred onto the new system.

The proof of application refers only to those who made the application on the special website that went fully live in 2020. All Brits were required to apply on this, and applications made directly to préfectures pre 2020 are not valid.

Not applied

It was a legal requirement to have made your application before the deadline date of September 30th 2021.

However, the political rhetoric coming from the French government has – so far – been quite sympathetic to Brits caught up in Brexit upheavals.

But if you are in breach of the requirements then the onus is on you to sort this out, and the sooner you do this the more sympathetic reception you are likely to receive.

The first step is to approach your local préfecture – take all relevant paperwork including proof of residency in France before December 31st 2021 and be ready to explain, with supporting documentation if you have it, why you did not apply in time.

There is a provision in the Withdrawal Agreement for late applications to be made, but it is vague when it comes to accepted reasons for the late application.

The French government states only “you were unable to make your request for legitimate reasons (for example, reasons related to your state of health, force majeure etc”.

Force majeure is also the phrase used in the Withdrawal Agreement, and the key is that it’s a major event that made it impossible for you to apply in time.

If you are worried that your French is not up to complicated conversations with the préfecture, there are a number of organisations who can help you – see here.

You can find more details of the new requirements in our Dealing with Brexit section.

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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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