Moving to France is an exciting step, but it’s not all lavender fields and crusty baguettes – your finances need careful planning first. If you’re already picturing the view from your new balcony, take a moment to ensure your money is working just as hard as you. Before you make your move, you should learn how to manage your money in France, so you aren’t stressed about funds when you’ll have so many other things on your plate.
From getting a French bank account sorted to preparing for life on a pension abroad, this article will help you get your financial ducks in a row before you make the leap.
Doing this right helps you avoid costly mistakes and enjoy a smooth and stress-free transition. Whether you’re relocating full time or buying a holiday bolt-hole, here’s everything you need to know.
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Opening a French bank account
Setting up a local bank account is one of the first things you’ll want to tick off your checklist. In France, having a local bank account makes it easier to pay bills, set up utilities and even get approved for a mobile phone contract or mortgage.
The major banking players in France include Crédit Agricole, La Banque Postale, Société Générale and BNP Paribas. If you’re more comfortable using English, look for an institution with bilingual staff or international banking teams. Online banks like Hello Bank! and Boursorama have also gained popularity in France, with easy app-based access and lower fees.
To open a French bank account, you’ll usually need proof of identity, proof of address and sometimes evidence of your income or residence status. Requirements vary between banks, and some may ask for additional documents if you haven’t moved to France yet.
Many banks allow you to start the application online, although you may need to visit a branch to complete the process. Check what’s required in advance and allow time for your account to be approved and activated.
French banks tend to be strict about overdrafts. You must request one in advance, and if you overdraw without permission, it’s not only frowned upon – it can lead to penalties and even the closure of your account. Most debit cards have daily or weekly spending and cash withdrawal limits, which you can normally increase by arrangement.
Unlike in the UK, many French customers have a named bank manager. They’re generally very approachable and helpful, especially if you’re new to the country and the banking system. Take advantage of that relationship – it can be invaluable.
For more advice on everyday banking, read our guide to making essential payments in France.
For a closer look at the buying process, download your free France Buying Guide:
Download the France Buying Guide
Setting up your savings
If you’re planning to live in France long term, keeping some of your savings in a French bank account could make managing everyday expenses easier. However, transferring money to France won’t necessarily reduce your tax obligations. It’s worth reviewing where you hold your savings and how they’ll be taxed before making any changes.
In the UK, Individual Savings Accounts (ISAs) allow you to earn interest and investment returns tax-free. However, France doesn’t generally recognise these tax advantages. Once you become a French tax resident, interest, dividends and investment gains from your UK ISAs may be subject to French tax.
You can usually keep an existing ISA after moving abroad, but you generally can’t make further contributions while you’re non-resident in the UK. You’ll also need to declare relevant overseas bank and investment accounts to the French tax authorities, even if no tax is due.
France has its own tax-efficient savings accounts worth exploring. One of the most popular is the Livret A, which offers tax-free interest and allows you to withdraw your money whenever you need it. You can deposit up to €22,950 per person, although interest can take your balance above this limit. The interest rate is set by the French government and can change over time.
Other options include the Livret de Développement Durable et Solidaire (LDDS), another tax-free savings account, and the Plan Épargne Logement (PEL), which is designed to help people save towards a property purchase. Each has different rules, so it’s worth checking which best suits your circumstances.
Transferring your savings across borders and into different account types should be approached carefully. Currency fluctuations, potential fees and legal reporting requirements all need consideration. A bilingual financial adviser can help you make the right move for both your risk tolerance and legal obligations as a future French resident.
Planning your pension move
If you’re retired or approaching retirement, it’s worth reviewing your pensions before moving to France. The good news is that you can continue receiving your UK State Pension while living there. You’ll also receive annual increases in line with those paid to pensioners in the UK, so your pension won’t be frozen when you move.
Private pensions need a little more planning. If you have a UK Self-Invested Personal Pension (SIPP), you can generally keep it after moving to France and access your funds according to your provider’s rules. You may also be able to continue making contributions, although your eligibility for UK tax relief will depend on your circumstances.
Most UK private pension income is generally taxable in France once you become a French tax resident. However, some government-service pensions, including certain public-sector pensions, are normally taxable in the UK instead. The UK–France double taxation agreement helps prevent the same income being taxed twice, but the rules can be complicated. It’s worth getting specialist advice before making withdrawals or changing your pension arrangements.
You might also come across Qualifying Recognised Overseas Pension Schemes (QROPS), which allow certain UK pensions to be transferred to approved overseas schemes. However, transferring your pension abroad isn’t necessarily the best option. There can be significant fees, tax implications and restrictions, and some transfers may trigger substantial tax charges. Before considering a QROPS, speak to a regulated adviser who specialises in UK and French pensions.
For the ins and outs of both schemes, read Smart Currency Exchange’s explainer on SIPPs and QROPs.
If you have multiple pensions, it’s a smart move to review them all together. Could consolidating help reduce your admin? Would converting some pension income into euros in advance help with budgeting? These are the sorts of questions best resolved with professional support from someone familiar with cross-border pensions and taxation.
Seeking financial advice
No matter how confident you are with your finances, moving to another country adds a layer of complexity that’s best managed with expert advice. And with rules around cross-border advice tightening since Brexit, it’s more important than ever to speak to someone qualified for both the UK and France.
Before moving, you can speak to a UK-regulated financial adviser about your plans. However, Brexit changed the rules for providing financial services across borders, and UK advisers no longer have automatic permission to offer regulated services throughout the EU.
Once you’re living in France, you’ll need to check that your adviser is authorised to provide the services you need there. Some UK firms operate through appropriately authorised European businesses, while other arrangements depend on the type of advice being offered. An adviser familiar with both UK and French regulations can help you understand your options.
A good international financial adviser can help you:
- Structure your pension and savings for tax efficiency in France
- Minimise exposure to currency fluctuations
- Meet legal reporting obligations for overseas assets
- Decide whether to keep or wind down UK bank accounts and ISAs
When choosing an adviser, check that they’re properly registered or authorised to provide the services you need. In France, this may involve checking the ORIAS register or the relevant financial regulator, depending on the type of advice. It’s also worth looking for someone with experience helping British residents in France, particularly if you have UK pensions, savings or investments.
Getting the right advice early could help you avoid costly mistakes and make the most of your money when you move. We work with experienced professionals who understand the challenges of buying property and settling in France, so you don’t have to work everything out on your own.
Arrive in France with financial confidence
Preparing to manage your money in France isn’t just about ticking boxes. It’s about creating peace of mind so you can actually enjoy your new life. From the complexities of French banking to navigating tax laws and pensions, there’s a lot to take in. But the right advice, preparation and bit of elbow grease will help you get it done right.
Whether you’re buying a holiday home or planning a permanent move, getting your finances organised early will put you in a much better position. Ready to take the next step? Book a free consultation with one of our property experts to talk through your plans for buying in France.
The information in this article is intended as general guidance and does not constitute personalised financial or tax advice. Rules can change, and your circumstances will affect how they apply to you. Always seek advice from an appropriately qualified professional before making decisions about pensions, investments or taxation.
FAQs about how to manage your money in France
While it’s not legally required to open a French bank account to buy property, having one makes it easier to pay utility bills, local taxes, and set up services like internet or a mobile contract. Most buyers open a French account shortly after purchase.
If you become a French tax resident, you’ll generally need to declare your worldwide income, including interest from UK savings accounts. UK ISAs also lose their tax-free treatment for French tax purposes, so interest, dividends and investment gains may be taxable. You may also need to declare your UK accounts to the French tax authorities.
Yes. You can continue receiving your UK State Pension in France, and it will still increase annually in line with UK rates. You can generally access UK private pensions too, although how they’re taxed depends on the type of pension and your circumstances. Some government-service pensions are treated differently, so specialist advice is recommended.
Not necessarily. You may find it useful to keep a UK account for receiving pension payments, rental income or managing expenses back home. However, some banks restrict services for customers living abroad, so check with your provider before moving. You’ll generally need to declare your UK accounts to the French tax authorities once you become a French tax resident.
It’s not a legal requirement, but getting professional advice is strongly recommended, particularly if you have pensions, investments or savings in the UK. Look for an adviser who’s authorised to provide the services you need and understands both UK and French tax rules. They can help you plan your finances and avoid potentially expensive mistakes.
