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Ask the expert: How students can remain in France after finishing their degree

France is keen to attract international students, but if you studied in France and want to stay here, there are also several routes tailored towards keeping qualified graduates in the country - specialist immigration lawyer Maître Haywood Wise explains more.

Published: 11 July 2022 14:49 CEST

Ask the expert: How students can remain in France after finishing their degree

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France has set itself a goal of attracting more foreign talent to universities, and the government is also keen for these highly qualified graduates to stay and become part of the French workforce.

Students who have an EU passport can stay with minimal paperwork, but non-EU students will need to change their student visa to ensure that they have the correct documents to live and work in France.

This is neither simple nor paperwork-free (of course) but there are several routes that recent graduates can take in order to stay.

Immigration lawyer, Maître Haywood Wise, who practices in the Paris area, explained some of the options:

Recherche d’emploi et création d’entreprise (RECE) – Job Seeker/ New Business Creator

If you did a vocational degree or masters level (or above) the ‘job seeker’ residence permit might be the best bet for you.

The goal of this card is to allow you to “have a first professional experience or start a company in a field that corresponds to your training.”

On this residence permit, you will be allowed to search for and hold a job in connection with your degree or research for one year.

According to Maître Wise, there are several “advantages” to this residency permit. You are permitted to work full-time while on this titre, in contrast to the part-time requirements of the student visa.

Maître Wise explained that the benefit of this permit is that while on it you “do not need a work permit” as a foreigner, as you have the legal right to work while on it – making you instantly more attractive to employers who are spared the burdensome task of security your work permit.

In order to qualify, you must have received one of these degrees, and during your studies you must have held a student visa (VLS-TS):

a Licence Professionelle (vocational degree),
a master’s degree or equivalent (such as an engineering degree, a degree from an institute of political studies (IEP), the higher diploma in accounting and management, a veterinary diploma, etc
a Specialised Master’s degree
a Master of Sciences (MSc) accredited by the Conférence des Grandes Ecoles

Keep in mind that this also applies to researchers who completed their research in France (meaning you previously held the residency permit: “Carte de séjour “passeport talent – chercheur”)

If you are worried that the above-criteria might not apply perfectly to your situation, Maître Wise explained that the legal code regarding who exactly qualifies is “rather ambiguous,” and that you might still be able to consider applying for this permit even if you do not come “directly under the terms of the legislation.” However, it is recommendable to seek legal advice in this scenario.

If you completed an undergraduate degree in France, unfortunately this will “most likely not work” for the ‘job seeker’ permit.

How much does it cost?

For students, the cost is €75, for researchers, the cost is €225.

What rules should I be aware of?

You are not obligated to do this directly after graduating – in fact, you can apply for the ‘job seeker’ permit up to four years after completing your degree.

How long does it last?

This residency permit is valid for 12 months – even if you get a permanent job during this period, there is no need to change the permit until the 12 months are up.

At the end of the 12 months, if you have found a job (in your field) or started a business in France, then you must switch onto a different titre.

When switching onto the next residency permit, if you’ve set up your own business or set up as a freelancer, you can look into the “temporary residency card: entrepreneur/professional.” For those who were offered a job, the next residency card will depend in part on your salary and field, as shown below courtesy of French government website service-public.fr. Keep in mind that exact salary amounts may differ from year to year, so it is best to check with official government websites.

Advice from French website service-public.fr

Carte de séjour: salarié/travailleur temporaire – Employee or temporary worker

If you did any type of higher education in France, you can apply for this visa once you have been offered a job in the field you studied.

The employment contract you must have been offered for this work is either a CDI (permanent position) or CDD (temporary position), but cannot be a stage (internship) or as a pigiste (casual worker).

Normally people getting this type of permit also need a work permit, for which employers need to demonstrate – among other things – that there is no local candidate who could do your job. However if you switch onto this permit type from the RECE card, demonstrating this is not necessary, assuming you meet the other requirements (the job meets the income threshold and is in your field of study).

You will still need to have your employment contract validated by the DIRECCTE (the Regional Department of Competition, Consumption, Work and Employment) when applying for an “employee” or “temporary worker” residency permit.

You’ll likely also need to provide proof of your current residency permit, your passport, proof of residence, three passport compatible photos, and your autorisation du travail (work permit).

How long does it last?

The first time you apply for this residency permit it is valid for one year (12 months). It is renewable, and can be renewed for a period of up to four years.

Passeport talent : carte de séjour pluriannuelle d’un étranger en France – Talent Passport

This residency permit is aimed at highly qualified candidates and for recent graduates it is issued based on your study field and salary level, and there are several different categories within it.

It’s less common for students, although some researchers qualify for it. For someone who has just finished their studies in France, you most likely would fall under one of these categories: “qualified employee”, “artist” , or “creation of a company.”

If you’re applying as an employee (rather than freelancer or business start-up) you need to have graduated from a p rofessional degree or a Specialized Master’s/Master of Science (accredited by the Conférence des Grandes Ecoles) or at least equivalent to a Master’s degree, and have been offered an employment contract with a gross annual salary of more than €39,494 or more (as of 2022).

You can find the other requirements HERE. Keep in mind your employer will need to fill out a Cerfa form to request that you fall under the ‘passeport talent’ category.

How long does it last?

This is a multi-year residency permit, and also allows you to bring a spouse and/or family members with you.

Final tips

Check official government websites to see when you must begin the application process for a ‘changement de statut’– sometimes this varies by préfecture, and if you are still waiting on your diploma certificate from your French university you can ask them for a provisional letter attesting you have met the graduation requirements and passed your grand oral (if that applies to you).

Maître Wise recommends the RECE permit if you qualify for it: “Stay on this titre de séjour until its expiration,” he said, adding the reminder that “each préfecture works differently. Some of these applications are easier in Paris.”

According to the immigration law expert, it is best to take the residency permit process “extremely seriously, particularly because the préfectures lack transparency and are not functioning well.”

His final tip is to “get on it in advance, and be prepared for confusion regarding how you’re going to get employment. If you have an employer, solutions are easy. If you don’t then it’s not going to be so easy.”

Basically, do your homework before going and be prepared for a potentially bumpy ride. If your situation is complicated or atypical, it might be best to spend some money on legal advice.

* Maître Haywood Wise works for the HAYWOOD MARTIN WISE law firm. They offer consultations in English and French. You can find their website HERE.

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Are Australian pensions taxed in France?

The situation for Australians can be particularly confusing, largely due to the fact that Australia and France do not have a bilateral social security agreement (though there is an income tax treaty).

Before going any further, it is worth noting that this article is meant to give an overview of the pensions situation for those with Australian pensions in France. It does not replace professional financial advice, and Australians looking to retire in France should seek out expert financial assistance before making any decisions about their pension.

The first step is to determine whether or not you are a tax resident in France (you can look through our guide). All tax residents must fill out a yearly tax declaration, and they must report all global income, even if it is not subject to tax in France.

Where is my pension taxed?

As for pensions, let’s start off with the basics – if you receive a civil service pension from the government of Australia – meaning you were a federal or state public worker, then that pension is only taxed in Australia and it will not be taxable in France, though you will have to declare it along with all global income, although this could count towards your household income which can push you into a higher tax bracket.

As for all other pensions – these are considered taxable in France.

If you have a pension from another country besides Australia, different rules may apply based on that country’s bilateral tax treaty with France. Here is the situation for British, American, and Canadian pensions, and here is an overview of the system.

Age pension

There is a big catch for Australians – the lack of a social security agreement means that Australians living in France may not be able to claim their Age Pension (assuming they qualify based on income constraints).

While you can be an Australian living in Austria, Belgium, Chile, Croatia, the Czech Republic, Spain or Estonia, among others, and still claim your Age Pension, this is not the case in France.

What’s crucial here is when you move – if you start receiving your old-age pension and then you move to France, then you may be able to continue claiming the pension. If, however, you move to France before you reach pension age, then you will not be able to claim it unless you move back.

A spokesperson for the Australian government told The Local in a previous interview: “To be eligible for Age Pension, a person must generally be an Australian resident and be in Australia at the time the claim is lodged, or in a country with which there is an International Social Security Agreement in place.”

There is no such agreement with France. And, despite the efforts of some of the thousands of Australians living in France to get politicians in both countries to act, there appears to be little urgency to change the situation, which means it could be some time yet before we are able to give you any good news on the pension front.

There are groups pushing for a social security agreement, such as the Facebook group ‘Australian Pensions in France’, which can also be a helpful place to connect with other Australians navigating tax complexities between the two countries.

What about superannuation plans?

The next complex area is the ‘superannuation’. While withdrawals from a ‘super’ can be accessed after becoming a resident in France, there are tax implications to be aware of.

The Local spoke with Martine Joly, chartered accountant and tax agent from Bilateral Solutions, who has experience working in both the Australian and French tax systems.

Joly explained that the challenge is that “the two systems are totally opposite. In Australia, pensions are done by capitalisation, with your employer paying into the superannuation.”

In Australia, the contributions were taxed when being deposited, so they are meant to be tax-free upon distribution.

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However, France does not recognise this, so ‘super’ withdrawals are subject to tax here, even though in theory they have already been taxed in Australia.

To make matters more complicated, there are several different ways superannuation plans can be organised, but for the most part French fiscal authorities treat them as trusts.

This means that you may have additional reporting requirements each year, in addition to your annual French tax declaration, such as the “FORMULAIRE N°2181-TRUST2” which asks for the market value, as well as any accrued income, of the trust as of January 1st of that year.

If you are required to do this, then you will also have to name other people listed in the trust – whether they are ‘moral’ or ‘physical’ people. You will be required to give extensive information, including their dates of birth and addresses.

On top of that, you would also have to fill out an additional “event” declaration if a trust is created, modified or terminated. This must be done within one month of the event. This tax form is also available on the government tax site: FORMULAIRE N°2181-TRUST1.

How much can I expect to pay?

You will begin to be taxed when you start withdrawing from your super, and the way you are taxed will depend on whether you take payments in the form of an ‘income stream’ (periodic payments) or as a lump sum.

If you take your super as an income stream, even though it is meant to be tax-free in Australia, you will still owe tax in France once it begins to be distributed. You would be charged at the progressive marginal (barème) rate for income tax, going all the way up to 45 percent (for the highest earners only).

If you try to avoid paying, be aware that “Australia will inform France”, as Joly explained.

“They communicate well and it will not be lost. So the French will realise if you have not paid any tax, because it is fully taxable in France. You have to declare this pension income,” she said.

As for lump sum payments, whether or not you will owe tax in France depends on when you placed the super into your bank account.

“If you convert the super into a bank account prior to leaving Australia and becoming a tax resident in France, then this is not an income, it is a saving,” Joly said.

As such, you would not owe income tax on it, but you would still need to declare the foreign bank account to French tax authorities.

If you take your lump sum super after moving to France and becoming a tax resident, then you would owe tax here upon distribution.

Beware that lump sums are complex and you should get financial advice before making this decision. Technically, French tax authorities may allow a return of once off pension capital to be taxed at a flat rate of 7.5 percent.

But in reality, anyone seeking to do this would need the express, written confirmation from French tax authorities that this rate will be applied. Similarly, you should be aware that this likely will not be possible if you have already begun drawing from your ‘super’, as the flat rate is often only available if the full amount is taken at once. Again, individual professional advice is highly recommended.

You can also find more information at the French tax website Impots.Gouv.Fr.

Joly pointed out a few other things Australians in France should be aware of – including the possibility you may owe the IFI (Impôt sur la fortune, or wealth tax) which considers whether you have property valued at €1.3 million or above.

“Due to high real estate prices in Australia, people just owning a small apartment in Sydney may not realise they would owe tax on this in France later on,” she said.

You should also keep in mind that Australia’s tax year runs on a different calendar year. France considers the period from January 1st to December 31st, while Australia looks at July 1st to June 30th.

This may make a difference when considering your tax residency.

What about social charges?

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

Australians have reported receiving social charges, in addition to taxes, for their superannuation income. That being said, there are several exemptions to social charges.

For example, if you are not working and your spouse is a recipient of an EU/EEA/UK pension (with an S1 form), then both of you would be exempt from paying the CSM health charge.

As the situation for Australians can be more complicated than nationals of other countries, it is highly recommended to seek expert assistance, particularly from someone who has qualifications in both countries and understands the tax treaty.

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