Pensions

Pension payments

People who move to France can generally continue to receive pensions paid from the UK or elsewhere. However, the way payments are made, converted into euros and taxed varies depending on the type of pension.

Reporting and compliance remain important. Even where a pension is taxable only in one country, it may still need to be declared in both. UK pensioners resident in France must declare worldwide income to the French tax authorities, and clear records of pension payments, transfers and exchange rates should be kept, particularly where funds are converted or transferred in stages.

UK State Pension

The UK State Pension can be paid to recipients living in France without the need to maintain a UK address. Payments are usually made directly into a UK bank account, although it is also possible to have them paid into a French account in euros.

If payments are made in pounds sterling, the receiving bank or provider will apply an exchange rate and may charge fees.

Under the UK–France tax treaty, the UK State Pension is generally taxable only in France if you are resident there. It must be declared on your French income tax return.

UK public sector pensions

Pensions paid for government service – such as civil service, local authority, armed forces or certain public sector roles – are treated differently. Under the tax treaty, these are usually taxable only in the UK, even if the recipient lives in France.

They are therefore not subject to French income tax, although they must still be declared and are typically taken into account when calculating the effective tax rate applied to other income in France.

Payments are generally made in pounds, so recipients may need to arrange currency conversion if funds are required in euros.

Private and occupational pensions

These include workplace pensions, personal pensions and defined contribution schemes. Payments are usually made in pounds into a UK account, with the individual responsible for transferring funds to France if needed.

Exchange rates, transfer fees and timing can have a significant impact on the final amount received in euros, particularly for larger or регуляр withdrawals.

In most cases, under the UK–France tax treaty, private pensions are taxable in France if you are resident there. The precise treatment can vary depending on how benefits are taken (for example, lump sums, drawdown or annuity payments), but all such income must be declared on a French tax return.