The first question: where are you a tax resident?
Everything starts with tax residency. In France, you are considered a tax resident if any of the following criteria apply (Article 4B of the General Tax Code): your main home or principal place of residence is in France; your main professional activity is carried out in France; or France is the centre of your economic interests. Breaking French tax residency requires meeting none of these criteria — and must be carefully documented.
"Many 'pseudo-expats' think they've left the French tax system. The reality is more nuanced — and a mistake can cost several years of tax with penalties."
The specific case of French-Swiss cross-border workers
Workers who live in France and work in Switzerland benefit from a specific regime under the France-Switzerland tax treaty. Their salaries are generally taxed in France under the progressive income tax scale. Swiss social contributions (pillar 2, LAA) are not deductible in France — but represent significant retirement savings.
What happens to your financial assets during expatriation?
| Account | During expatriation | Key point |
|---|---|---|
| PEA | No new contributions | Can be kept; 5-year clock keeps running. |
| Assurance-vie | Can be kept & funded | Check contract terms. Tax on withdrawal depends on residency at that time. |
| PER | Can be kept | Contributions possible under conditions. |
| Livret A | Must be closed | Reserved for French tax residents only. |
| Securities account | Can be kept | Capital gains taxed per applicable treaty. |
Specific opportunities for expats
- Greater savings capacity: Swiss incomes allow much higher saving rates. Capitalising on this period is crucial.
- Luxembourg life insurance contracts: for expats with significant assets, these offer enhanced legal security (triangle de sécurité) and international portability.
- Exit tax to plan ahead: if you hold significant securities and leave France, exit tax may apply — it must be anticipated, not discovered at departure.
"A cross-border worker who saves intelligently for 10 years can build a wealth base that a French resident would take 20 years to achieve — provided they have a strategy from day one."
Returning to France: watch out for surprises
Latent capital gains on foreign accounts, foreign savings plans (Swiss pillar 3a…) have specific French tax treatment. Declaring foreign accounts (form 3916) is mandatory — failure to declare is automatically fined €1,500 per undeclared account.
Are you an expat or cross-border worker?
Véloci specifically supports cross-border workers in the Grand Est region and expats returning to France.