Yes, retirees who are French tax residents must pay French taxes on their worldwide income, which generally includes their pension income. However, the specifics of taxation depend heavily on the type of pension and the existence of a double taxation agreement (DTA) between France and the country where the pension originates.
Tax on pensions in France
In France, pensions are subject to income tax after the deduction of a 10% allowance per household (capped at €3858 based on 2021 figures). After you pass your tax-free allowance (€10,084 based on 2021 figures), income tax rises to 11%, rising to 45% for high-income earners.
If you're 60+ and retired, Australian super pensions are tax-free in Australia. In France, however, your superannuation may be treated as taxable pension income and included in your household's global income, even if tax-free in Australia.
If you are entering France in order to retire, you will need to obtain a French Long-Stay visa. If you are already in France legally, you will not need a new visa but must instead be established in France with a valid residence permit.
The full amount of age pension that a person is eligible for is payable while overseas for 26 weeks. However, once overseas for longer than 26 weeks, the amount of age pension payable to a person is dependent upon the person's length of residency in Australia.
How much money is needed to retire in France? The financial requirement for a long-stay visa (VLS-TS) can be around €15,000 per year for a single applicant, but actual costs depend on lifestyle and location. Typically, you will want to have at least six months' worth of savings for unexpected expenses.
Which country is 100% tax-free? None. A handful do not levy personal income tax—for example the UAE, Qatar, Kuwait, Oman, Bahrain, Saudi Arabia, Bahamas, Bermuda, Cayman Islands, and Monaco—but residents still face VAT/GST, customs duties, real-estate charges, or corporate tax.
How to avoid paying higher-rate tax
If you want to retire in France and stay beyond 90 days, you must apply for a long-stay visa (visa de long séjour) through the French consulate in your home country before arrival.
The hidden tax loopholes for foreign entrepreneurs in France
One of the most effective ways of moving from Australia to France is via employment or sponsorship by your family member or friend already resident in France. However, you must meet various eligibility criteria, and provide several supporting documents before you can apply for the France visa.
While personal preferences such as retirement destination and standard of living will come into play here, France can be an affordable place to spend your leisure years. The cost of living in France is, on average, around 9% lower than in the United States, and rent is a whopping 51% lower than in the US.
Normally, people who are not U.S. citizens may receive U.S. Social Security benefits while outside the U.S. only if they meet certain requirements. However, under the agreement, you may receive benefits as long as you reside in France regardless of your nationality.
According to their research, a single person needs to earn at least €3,860 after tax to be considered wealthy, which is twice the median standard of living in France. For couples, the threshold is €5,790 without children and €9,650 with two children.
Here are some of the top destinations where Australians are choosing to retire to:
10 of the cheapest and safest places to live in the world
£300k in a pension isn't a huge amount to retire on at the fairly young age of 60, but it's possible for certain lifestyles depending on how your pension fund performs while you're retired and how much you need to live on.
The country that has the highest taxes is the Ivory Coast (60%), according to statistics platform Data Panda's 2025 survey. Other countries with high taxes are Finland (56%), Japan (55%), Austria (55%), Denmark (55%), Sweden (52%), Aruba (52%), Belgium (50%), Israel (50%), and Slovenia (50%).
However, the US-France tax treaty states that pensions are only taxable in the country they come from. This means that your US-source pension will only be taxed by the US, not both countries. (Though you will still have to report your pension income on your French tax return to calculate your tax rate.)
Key Takeaways. Bermuda, Monaco, the Bahamas, and the United Arab Emirates (UAE) are four countries that don't have personal income taxes. U.S. citizens are obligated to file and pay U.S. income taxes even if they live in another country.
When the UK left the EU on 1 January 2021, France imposed a higher rate of 17.2% on British citizens owning French second homes. This significantly increased the tax burden for Brits and encouraged many to sell their properties.
The top ten financial mistakes most people make after retirement are:
In France, the state pension averages around €1,500 (£1,265) a month but it can allow workers to take a maximum of 50pc of their wages based on their highest-earning years, up to a limit of €1,962.50 (£1,695) a month, or €23,550 (£20,345) a year.