When moving to France, one of the first financial questions many expatriates face is how to structure their savings. It is important to understand the French banking sector and the wide range of banking products available in the French market. While France has a range of regulated accounts such as the Livret A, these options are limited in scope and not always suitable for expatriates with cross-border wealth.
For expats, the priority is usually to ensure their savings remain tax-efficient, accessible internationally, and aligned with long-term plans such as retirement. Choosing the right chosen bank can significantly impact account features, accessibility, and the overall banking experience for expats. Expats also need to consider the regulations and benefits in both France and their home country when selecting savings options. This is where solutions such as Assurance Vie, a General Investment Account (GIA), or an International SIPP become far more relevant.
Why expats need a different approach
Traditional French savings accounts have strict deposit caps and modest returns. They may work for local residents, but expats often have more complex needs. Non residents also face unique challenges and may have different savings options compared to residents. Currency exposure, pension transfers, international mobility, and global tax considerations all play a role.
For this reason, many expatriates turn to flexible investment wrappers that can hold multiple asset types, offer better tax optimisation, and remain portable if life abroad takes them to another country. In recent years, regulatory changes and new products have expanded the options available to both residents and non residents.
Savings Account Options for Expats in France
When settling in France, expats have access to a variety of savings accounts designed to help manage their finances efficiently. French banks offer several government regulated savings accounts, such as the Livret A and Livret de Développement Durable, which are popular for their tax free interest and instant access to funds. These accounts are ideal for building an emergency fund or saving for short-term goals, as they allow you to deposit and withdraw money easily without incurring taxes on the interest earned.
For those interested in investing, the Plan d’Épargne en Actions (PEA) is another option. This account enables expats to invest in French and European stocks and bonds with favorable tax treatment after a certain holding period. However, it’s important to be aware of investment limits and potential management fees associated with these accounts.
Because each savings account comes with its own set of rules regarding interest rates, investment limits, and fees, it’s wise to seek advice from a financial advisor. They can help you compare options, understand the costs, and choose the best account to manage your savings and investments in France.
Government-Backed Savings Options
The French government supports several savings accounts that offer security and tax advantages for residents and expats alike. Accounts such as the Livret A, Livret de Développement Durable, and Livret d’Épargne Populaire are regulated by the French government, ensuring your money is kept safe while earning guaranteed interest rates. One of the main attractions of these accounts is that the interest earned is tax free, making them a reliable way to save without worrying about additional taxes.
Each account has a maximum deposit limit, so it’s important to plan your savings accordingly. While the interest rates on these government-backed accounts are generally lower than those offered by some other savings options, the combination of safety, tax benefits, and instant access to your funds makes them a solid choice for many expats. Always review the specific terms and conditions of each account to ensure it aligns with your financial needs and savings goals.
Assurance Vie – the cornerstone of savings in France
The Assurance Vie is by far the most popular and tax-efficient investment product in France. It is not just an insurance contract but also a powerful long-term savings and investment wrapper.
Why Assurance Vie suits expats:
- Tax efficiency: After eight years, withdrawals are taxed at very favourable rates. Small withdrawals often fall below taxable thresholds altogether.
- Currency flexibility: Many Assurance Vie contracts allow you to hold euros, sterling, or dollars, protecting you from exchange rate volatility.
- Inheritance planning: Assurance Vie policies allow you to nominate beneficiaries, often avoiding French succession law constraints.
- Investment choice: Funds can be invested in a wide range of portfolios, from cautious bond funds to global equities.
- Management fee: Most Assurance Vie policies charge a management fee, which can impact your investment returns over time.
For expats intending to remain in France long term, the Assurance Vie is often the primary vehicle for growing wealth tax-efficiently.
To open an Assurance Vie, you will need to provide the required documents, such as identification and proof of address, as part of the application process.
General Investment Accounts (GIA) for expats
A General Investment Account (GIA) is a straightforward investment structure that allows expatriates to build a flexible portfolio of funds, shares, or bonds without annual contribution limits. Unlike the Assurance Vie, it does not have specific French tax benefits, but it can be useful for:
- Shorter-term savings goals where you want easy access to your capital.
- Holding international assets that may not fit neatly into French wrappers.
- Building investments outside of French regulation, which may be helpful if you expect to relocate again.
GIAs are particularly popular with expatriates who want transparency and control over their investments, but they do require careful tax reporting in France. The amount of tax you pay on GIA profits may depend on your annual income, so it is important to understand your financial obligations when managing these accounts.
Offshore Investments for Expats
For expats looking to diversify their portfolio and potentially benefit from higher interest rates, offshore investments can be an attractive option. These accounts and investment options often provide greater flexibility and access to international markets, which can help minimize tax liabilities and enhance returns. However, it’s essential to understand that offshore investments may be subject to additional fees, investment limits, and complex tax rules, including French income tax and inheritance tax.
Before investing offshore, expats should carefully assess their financial situation, considering factors such as taxable income, investment limits, and the potential impact on their overall portfolio. Seeking professional advice is crucial to ensure compliance with French tax regulations and to make informed decisions about the risks and benefits of offshore accounts. By doing so, you can optimize your investments while staying on the right side of French tax law.
Ethical Investing in France
Ethical investing is gaining momentum in France, with more investors seeking to align their portfolios with their personal values and contribute to a sustainable future. The French government has introduced initiatives to encourage socially responsible investments, including official labels that help identify ethical funds and stocks. For expats, this means you can invest in funds and companies that prioritize environmental, social, and governance (ESG) criteria, while still aiming for competitive financial returns.
If you’re interested in ethical investing, it’s important to conduct thorough research and seek advice from a financial expert. They can help you select investments that match your values and financial goals, ensuring your money is working for both your future and the greater good. Whether you’re new to investing or looking to adjust your portfolio, ethical funds and stocks offer a meaningful way to grow your wealth in France.
International SIPP – for expats with UK pensions
For British expatriates in France, one of the most important savings options is an International SIPP (Self-Invested Personal Pension). Unlike a QROPS, which is now very restricted, the International SIPP allows UK pension holders to:
- Consolidate pensions from different UK employers into a single plan.
- Maintain flexibility with withdrawals and investment choices.
- Stay in control if you later return to the UK or move to another country.
- Avoid punitive tax treatment that can apply if pensions are not structured correctly for French residents.
Some tax advantages or withdrawal options with an International SIPP may only become available after five years, so it is important to consider this minimum holding period when planning your retirement strategy.
An International SIPP also ensures your pension remains within the UK regulatory environment, which is often safer and more transparent than transferring into a foreign scheme.
Managing Expenses as an Expat
Managing your expenses effectively is key to building a secure financial future as an expat in France. Opening a French bank account can simplify everyday transactions and give you access to government regulated savings accounts with competitive interest rates and low management fees. Understanding the tax implications of your income and investments is also essential, as French income tax, social charges, and inheritance tax can all impact your savings and returns.
To make the most of your money, create a comprehensive financial plan that takes into account your income, savings goals, investment limits, and potential costs. Regularly review your accounts and investments to ensure you’re benefiting from the best interest rates and minimizing unnecessary fees. By seeking advice from a financial advisor, you can navigate the complexities of the French financial system, reduce costs, and secure your financial future while living abroad.
Comparing the options
Each person may have different eligibility requirements and maximum amounts they can deposit into each account. It’s important to consider the cost of each option, including fees and other charges, as these can impact your overall returns. Regular contributions can significantly improve long-term savings outcomes. When comparing options, look at the interest rate offered and whether a higher interest rate is available for fixed-term or specific accounts. Also, consider the role of cash holdings and the ability to access cash quickly, as some accounts allow for immediate cash withdrawals while others may restrict access.
| Option | Best for | Key Benefits | Considerations |
|---|---|---|---|
| Assurance Vie | Long-term residents in France | Tax efficiency, currency flexibility, inheritance benefits, flexible deposits, potential for higher interest rate | Tied to French residency rules, maximum amount may apply per person, eligibility based on residency |
| General Investment Account (GIA) | Short- to medium-term savings, flexible investing | No maximum amount, wide asset choice, transparent, easy deposits and withdrawals, access to cash | Taxed annually in France, no specific tax advantages, cost of trading and account fees |
| International SIPP | UK expats with pensions | Pension consolidation, flexible access, regulated, regular contributions possible | Withdrawals taxable in France, requires specialist advice, eligibility for UK pension holders, possible cost of management |
How much should an expat save in France?
Expats should keep three to six months’ living expenses in a liquid French account (such as Livret A for simplicity), but for larger sums, products like Assurance Vie or an International SIPP are far more efficient. Keeping large amounts in ordinary French bank savings accounts exposes you to unnecessary taxation and inflation risk.
FAQ – Savings options when living in France
Is Assurance Vie better than a UK ISA?
Yes, once you become French tax resident, ISAs lose their tax-free status. Assurance Vie provides similar tax advantages but tailored to the French system.
Can I transfer my UK pension into a French Assurance Vie?
No, pensions cannot be transferred directly. Instead, a UK pension can be consolidated into an International SIPP, which is then managed alongside your French savings.
Does France tax worldwide income?
Yes. If you are resident in France, your worldwide income and investments are taxable, which is why using compliant wrappers is so important.
Can I still use a GIA if I leave France in the future?
Yes, GIAs are highly flexible and portable, making them a good option for globally mobile expats.
Conclusion
For expatriates in France, the real savings opportunities go beyond local bank accounts. While regulated products like the Livret A are useful for day-to-day savings, they are limited in scope. Long-term planning requires efficient structures such as Assurance Vie, General Investment Accounts, and International SIPPs.
These vehicles offer better tax planning, investment choice, and cross-border flexibility — exactly what expats need to manage wealth while living abroad.
Find out more
If you are an expatriate in France and want advice on how to structure your savings, whether through Assurance Vie, a GIA, or an International SIPP, Harrison Brook can help. Our advisers specialise in cross-border wealth management, ensuring your money is working efficiently both in France and internationally.
