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Low income expats in France to benefit from CGS changes
| Published: | 29 Jan at 6 PM |
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Tagged: France, Pension Transfer
The French government has announced a reduction in the amount charged on investment income.
Expats in France with wealth management plans are to receive a welcome boost to their returns as the government has reduced the rate of social charges applied to income from investment. The changes mean expatriates on low incomes will only pay 7.5 per cent, a considerable reduction from the present day 17,2 per cent rate. However, the base rate will remain at its 2018 figure. The news was announced as a part of the 2019 social security budget, and gives especial relief to expatriate retirees in addition to those drawing down investment income. Additionally, it’s welcome news for those who get income from investments in France but are living overseas. As a result, just 30 per cent of retirees will still be liable for the increased CGS rate.
In addition, expats living in the country who have an ‘E’ form, an S1 health certificate or are in receipt of a government service pension, are now to be exempt from additional charges due to their 100 per cent relief from social charge levies on their pension income. However, unless further exemptions apply, any additional income from pensions will be subject to the new charges and will be dependent on a combination of salary income, pension income and investment income. Expat spouses are subject to an average rate, and expats now entitled to preferential rates will need to wait until they’ve submitted their 2018 tax return during the summer months. If they find they’ve paid too much, refunds will be made available.
Expats in France with wealth management plans are to receive a welcome boost to their returns as the government has reduced the rate of social charges applied to income from investment. The changes mean expatriates on low incomes will only pay 7.5 per cent, a considerable reduction from the present day 17,2 per cent rate. However, the base rate will remain at its 2018 figure. The news was announced as a part of the 2019 social security budget, and gives especial relief to expatriate retirees in addition to those drawing down investment income. Additionally, it’s welcome news for those who get income from investments in France but are living overseas. As a result, just 30 per cent of retirees will still be liable for the increased CGS rate.
In addition, expats living in the country who have an ‘E’ form, an S1 health certificate or are in receipt of a government service pension, are now to be exempt from additional charges due to their 100 per cent relief from social charge levies on their pension income. However, unless further exemptions apply, any additional income from pensions will be subject to the new charges and will be dependent on a combination of salary income, pension income and investment income. Expat spouses are subject to an average rate, and expats now entitled to preferential rates will need to wait until they’ve submitted their 2018 tax return during the summer months. If they find they’ve paid too much, refunds will be made available.
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