# Moving to France from USA



## Brod_K

Hello.
My wife and I have been asked my friends of ours to house sit their property in France for 2 to 3 years until they are ready to permanently move into that property. My wife and I would obviously not work during that time. We would pay rent, but definitely less then market rate.

The only source of income would be the husband's Social Security and pension. The wife would have no income.

So the question is, should we take this opportunity to live in France? What are the tax implications for us? Are Social Security and pensions taxed by the United States or by France? And what sort of Visa/ residence permit would we need to get? Does France allow duty free importation of household goods for people with long-term visas?

We are traveling to France at the end of September to see the property and to make a decision. Our friends need to know if we can do this for them.

Any advice you could give would be most welcome.

Thank you.


----------



## Bevdeforges

If you are going to be "housesitting" during that time, you'll have to rely on the Social Security and pension income to justify your long-stay visa application - basically a "visiteur" visa as retirees. Basically, the US claims the right to tax US Social Security. (But remember, you have to declare all worldwide income on your French tax declaration - you then receive a tax credit at French rates to offset the taxes calculated.) If the pension you mention is a private pension, I'm not sure if the same tax credit thing applies but I'd assume it does and let the Fisc tell you otherwise. (The Fisc is much easier to deal with than the IRS.)

You should have no real problem importing your household goods based on your long-stay visa. You have one year from your date of entry to import your belongings. And while there is no "duty" charged, you may get hit with VAT on anything you import that is obviously new (i.e. purchased within the last 6 months before your move). Be sure to hold onto receipts for any obviously new items (like computers, electronic devices, etc.) just in case you need them.

One caveat regarding US taxes is that provision of free (or below market) accommodation potentially could be considered reportable income by the IRS. I have never heard of the French Fisc insisting on that sort of thing. And to be honest, how the IRS would ever know about your friends' offer I'll never know. 

On a visiteur visa you'll need to show that you have private health cover for your first year in France, however you'll become eligible to enroll in the French system after 3 months of residence. (The enrollment process can take "a few" months, though, so if you can find a policy that can be cancelled mid-way through, so much the better.) In addition to the national health plan, you'll also want to sign up for a mutuelle (top up insurance), which covers part or all of what the basic state plan doesn't reimburse. 

Those are the basics. There are plenty of details, but time for those later.


----------



## jweihl

You don't say where this house is, and that might affect how doable this will be on a social security and pension only income. Depending on where in the states you're coming from the cost of living in your french community will certainly be different. Many things in France are definitely more expensive than in the US (energy, some food, gasoline, durable goods). Other things can be quite a bit cheaper (wine, bread, public transport, health care). Costs will definitely vary by whether you're living in a city or village, and by region. 

That said, if your pension and social security income are sufficient in the US, your situation ought to be doable here in France. There aren't any real "gotchas" for people in your situation, in fact when you qualify for the French healthcare system it's quite a bargain.


----------



## LFBEUSTON

I would think your best option is to contact the French authorities direct. They do have English speakers if your French is somewhat rusty.


----------



## 255

@Brod_K -- Your questions: "So the question is, should we take this opportunity to live in France?" Yes. "What are the tax implications for us?" None really. You'll be required to file taxes in both the U.S. and France. Your U.S. taxes will be the same and as @Bevdeforges said you'll get a "credit" on your French taxes, so your actual payment will be nil. "And what sort of Visa/ residence permit would we need to get?" @Bevdeforges covered this. "Does France allow duty free importation of household goods for people with long-term visas?" Yes.

"Any advice you could give would be most welcome." Once you make your decision to come to France -- start learning French. It'll make your life easier. You might even want to take an immersion course, once you arrive.

Assuming you enjoy your time in France, you might want to travel the country to scout your "next move," after you're obligated to vacate the property. Once you're in France for 5 years, you'll be eligible for citizenship.

You didn't mention what kind of pension you have -- but you might consider doing a "Roth Conversion Ladder," to start getting your money (and growth) into non -taxable accounts. If 100% or your income is from U.S. Social Security retirement and Roth IRAs (or Roth 401Ks,) you'll not owe any income tax, either to France or the U.S., in the future. Cheers, 255


----------

