Americans Moving to France
Financial Planning and Investing Considerations for Americans Moving to France
France has always been among the most popular destinations for Americans moving to Europe, thanks to it’s incredible climate, history, culture and cuisine.
Moving to France comes with financial planning and investing challenges though, many of which should ideally be considered before you move, or as soon as possible afterwards. Seeking advice as soon as possible can make a significant difference to your financial situation,
The financial challenges that Americans in France face include maintaining and opening US brokerage accounts as an expat, retirement planning, how and where to invest, minimizing currency exchange loss, US and French tax optimization, and international estate planning.
Download our guide below or schedule a consultation.
What else do US Citizens moving to France need to know?
The list of financial factors that Americans making the move to France need to know doesn’t end there. You’ll also have to think about where to invest, how to open a French bank account, which residency visa to apply for (and how to apply for it), and find out about local and national French taxes and how they interact with US taxes for cross-border Americans.
In the video opposite, we provide a very brief overview of some of the factors you should consider.
Download our in-depth guide below, or schedule a consultation to discuss your situation with one of our expat experts.
Our Story
EuroAmerican Financial Advisors is the only independent financial advisory firm specializing in serving Americans in France.
We provide investment advice and financial planning services tailored for Americans in France. The financial issues faced by Americans in France are quite different compared to Americans living within the United States due to cross-border taxation, currency fluctuations, as well as global investment questions.
We are regulated and licensed in France, and our advisors are also licensed in the US. We offer Americans in France a personalized and optimized service, transparent fees, easy communication, tax efficient investment strategies; and most importantly the peace of mind that comes from dealing with an investment advisory firm that specializes in financial planning in to both the US and France.
We’ve created an in-depth guide to the financial planning considerations for Americans moving to France, which you can download below.
EAFA Financial Planning Considerations Guide for Americans moving to France
Enter you details below to download our guide to financial planning considerations for Americans moving to (or living in) France
Our Services
Investment Advice
Most firms use model portfolios that don’t take into account your situation as an American in France affected by both jurisdictions’ tax and regulatory regimes, and your withdrawal plans or future needs in Euros and/or dollars. Such portfolios also don’t allow the flexibility to adapt depending on the economic cycle, market volatility, or your cash needs.
At EAFA, we build a personalized investment strategy for you as an American in France. We work with our partners and utilize expat-compliant investments and brokerage accounts to implement the strategy and make tactical adjustments when necessary. In this way, we ensure that you remain optimally on track to meet your financial goals.
Financial planning
We have the experience and knowledge to manage cross-border portfolios in a tax efficient manner in both the US and France while also mitigating risks arising to your wealth or income from dollar/Euro currency movements. We have advisors with both the US Certified Financial Planner (CFP) designation, and the European Financial Planner (EFP) designation.
At EAFA, our financial planning process encompasses the additional complexities that living as an American expat in France entails while maintaining an unwavering focus on your financial goals. We also address non-investment issues such as estate planning, US and French taxation, education planning for children or grandchildren, and retirement considerations.
Retirement planning
Most firms don’t have experience working in both Euros and dollars to minimize costs, currency exposure and taxes in both France and the US.
At EAFA, we will create a retirement plan based on your plans and aspirations, that will minimize taxes and currency exposure, and which is globally diversified. We understand that you may want to maximize travel and leisure in the early years of retirement when you are most active, and we will stress test our plans using historical scenarios like the global financial crisis, pandemics, and periods of high and low interest rates, to ensure you are prepared and protected for whatever may come.
Why EAFA?
We specialize in providing financial planning and investment advice for Americans living in France.
We are independent advisors, licensed and regulated in France, and regulated US advisors, allowing us to manage and globally diversify your investments in your best interests, not ours. We have the knowledge and experience to minimize your tax exposure in both jurisdictions as well as risks of losses relating to dollar/Euro currency movements.
We take a holistic approach, learning about your current situation, future plans and investment goals. We are expats ourselves, so we fully understand the issues and challenges Americans in France face, as well as the peace of mind that comes from trusting your finances to experts, allowing you to relax and enjoy the great adventure of living abroad.
Ready to Plan your Move to France?
Schedule a complementary consultation to discuss your options. We can transfer your existing investments to an expat-compliant US brokerage account without creating a taxable event if necessary.
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When you’re ready, sign our Know Your Client form and advisory agreements online.
France is an ever-popular destination for Americans seeking a new life experience abroad, offering incredible history, landscapes and culture, a sophisticated cuisine, and a high quality of life. However, investing as an American in France comes with challenges due to expats being subject to both US and EU rules. In this article, we outline several important considerations to bear in mind when managing your investments while living in France.
- Managing US investments from France
- French retirement accounts
- IRA contributions
- Tax implications for US expats in France
- Investment pitfalls: PFICs, foreign mutual funds and MiFID II
- Currency considerations
Managing US investments from France
As an American living abroad, you must comply with US reporting requirements, including continuing to file a US tax return each year and also filing French taxes. Furthermore, you have to file additional US forms to report any overseas financial accounts and assets you have. EU rules meanwhile can limit your ability to invest in the US. When you file your US https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbartaxes, you can claim either the Foreign Earned Income Exclusion or the Foreign Tax Credit to avoid double taxation of the same income.
Many American expats choose to maintain their US investment accounts when they move to France, for convenience and also to avoid potential US tax complications related to some French investment products. However, some US financial institutions may restrict services to Americans residing abroad for regulatory reasons. Due to this complex financial and investment landscape, it’s advisable to consult with a US expat-specialist financial planner to find out what options you have for continuing to invest in the US, in terms of brokerage accounts and investment types, staying compliant with EU rules as a resident in France, and not limiting your investment opportunities or triggering unnecessary additional reporting or taxes.
French retirement accounts
If you are employed in France, you may have access to French retirement accounts, such as the Plan d’Épargne Retraite (PER). These accounts offer tax-deferred growth and can be a valuable part of your retirement planning strategy. However, it’s important to coordinate these accounts with your US retirement accounts as part of your overall retirement plan.
IRA contributions
Living in France doesn’t mean that you have to stop funding your US retirement accounts. You can still contribute to an IRA as long as you haven’t excluded all your income by claiming the Foreign Earned Income Exclusion. For this reason, it may make more sense to claim the Foreign Tax Credit to avoid double taxation. Your expat financial and tax advisors will work together to plot the best path for you.
Tax implications for US expats in France
If you spend over 183 days in France within a calendar year, you become a French tax resident. As a tax resident, you must declare all of your worldwide income to the French tax authorities, including from investments, rental properties, and pensions. However, the US-France tax treaty provides several benefits:
- US source pensions and retirement income: Pensions and retirement income from US sources, such as IRA and 401(k) accounts, are only taxable in the US
- French source pensions: Pensions from French sources such as the Plan d’Épargne Retraite (PER) are not taxed in the US for American expats living in France.
- IRA contributions: American expats can reduce their French taxable income by deducting contributions made to a US IRA.
- Roth IRA contributions: Available but subject to income limitations.
- Roth IRA distributions: Tax-free in both the US and France.
By understanding these rules, you can optimize your retirement planning and ensure that you minimize your US and French tax bills.
Investment pitfalls: PFICs, foreign mutual funds, and MiFID II
Many French citizens utilize assurance vie, a tax-efficient savings vehicle, but this strategy is not advisable for US expats due to the IRS classification of “assurance vie”, in common with all non-US mutual funds, as a Passive Foreign Investment Company (PFIC). PFICs are subject to stringent US reporting and unfavorable tax treatment, including higher tax rates and interest charges on gains. To avoid the PFIC pitfalls, it’s generally advisable for US expats to steer clear of French mutual funds and instead focus on certain US-based investments or individual foreign stocks that do not fall under the IRS PFIC classification.
However, EU MiFID 2 rules for EU residents limit access to certain US investments, including many US ETFs. As such, consult with an expat specialist investment advisor who will know which investments are both US and EU compliant and best meet your financial planning goals.
Currency considerations
Investing as an American expat has the added factor that you may have investments or want to invest in the US but have or want income in Euros. This presents two challenges: first, that the value of your US investments can rise and fall as the relative value of the dollar rises and falls compared to the Euro, and second, that you stand to lose money when transferring funds between the US and France.
An expat financial advisor will help you plan your investments to minimize risk due to currency fluctuations, while a specialist currency broker can help you minimizes currency exchange losses.
In conclusion, investing as an American living in France requires careful planning and a detailed understanding of both French and US financial regulations. By staying informed about tax implications, choosing compliant and tax-efficient investment options, and staying on top of your cross-border reporting requirements, and seeking advice from financial and tax professionals with experience and expertise working with Americans in France, you can successfully navigate the complexities of investing as an American expat and achieve your long-term financial goals.
If you have any questions about financial planning or investing as an American living in the EU, get in touch.
This article is for informational purposes only; it is not intended to offer advice or guidance on legal, tax, or investment matters. Such advice can be given only with full understanding of a person’s specific situation.
Americans Moving to France Financial FAQs
What financial planning issues should Americans consider before moving to France?
Americans should review tax exposure, investment accounts, retirement plans, currency needs, estate planning, and cross-border reporting before relocating to France.
How are US retirement accounts treated for Americans living in France?
US retirement accounts can often remain in place, but withdrawals, taxation, and reporting may be affected by both US rules and French tax residency.
Can Americans living in France continue investing in US-based accounts?
Some Americans can keep US accounts, but brokerage restrictions, compliance rules, and investment access may change once they become French residents.
What are the tax considerations for Americans investing while living in France?
Americans in France may face US taxation, French taxation, FATCA reporting, and potential issues with investment products held across borders.
Should Americans moving to France adjust their investment strategy?
Yes. They should consider currency exposure, tax efficiency, retirement goals, account access, and the impact of living expenses in France.
Why is cross-border financial planning important for Americans living in France?
Cross-border planning helps coordinate US and French rules, avoid costly mistakes, and keep investments aligned with long-term financial goals.