Pensions

Make your dream come true

Many of us dream of a retirement abroad for various reasons. Perhaps
we are looking for a better climate or an area where we can improve our quality of life.

Retire "as a Frenchman"

The alluring and delightful South of France has always been a great draw for visitors from all over the world. The fine climate, the beautiful landscapes, the cultural opportunities and the lively people - you can find it all here. If you want to retire "like a Frenchman", you can also enjoy very favorable retirement conditions as a bonus.
We will discuss the most important factors to consider here.

Things to do in Sweden

First, of course, you should notify your intention to move. You do this with the Swedish Tax Agency and the Social Insurance Agency.

To have the right to be taxed in France, you must meet a number of legal requirements. The Tax Agency will assess your application by making an overall assessment of the following factors

You should not stay in Sweden for more than 4-5 months
You must not have your main residence in Sweden. A holiday home is OK, but it may be an advantage if it is not located in a metropolitan area and you do not register at this address.
You should not have a family in Sweden (at least not a wife and small children)
You can't have any kind of business in Sweden, or own or co-own a company
You may not sit on any Swedish board

Things to do in France

You may want to visit a local tax office in the municipality where you will live

Get a bank account
Study tax rules, in particular French inheritance tax, gift tax and tax on pensions.
Find out if your pension arrangements comply with the agreement between France and Sweden. Note that wealth tax is levied, but from relatively high levels
Make sure you are entitled to French medical care, obtain a Carte Vitale via a certificate from the Swedish insurance fund. The certificate must be submitted to the French insurance fund. Also make sure that you are included in the French family doctor system. If necessary, get French health insurance, a so-called Mutuelle.
If necessary, write a French will, as French law does not follow Swedish law on wills.
Make sure that all insurance policies are valid from day 1 in France.

The last piece of advice is perhaps the most important. Be out in good time. Sometimes things take a long time.

Tax in France on Swedish pensions

First of all, we would like to emphasize that if you want to retire in France, you can have your pension taxed in France at a significantly lower rate than in Sweden. As a rough guide, a normal pension in Sweden is taxed at least 30%, while in France you may pay 11-15%.
We shall give examples here of the approximate levels that may apply in France.
Note that we do not include factors other than the pension paid from Sweden, i.e. we do not take into account any wealth, capital income or similar. The tax treaty between Sweden and France means that only France taxes most Swedish pensions.
France taxes the household, not each individual separately (joint taxation). Among other things, this is an advantage at different income levels.
Consider the figures below as approximate. We have used the French tax authorities' simulation tables for 2024 and a rate of 11.40.

A single person may first make a deduction of 10%, but not more than €4,321.
No tax is paid on pensions below € 11 509 per year.
Thereafter, the following applies:
11% between € 11 510 and € 29 344
30% between € 29,345 and € 83,905
41% between €83,906 and €180,472
45% on pensions over €180,472

Example 1: A single person born in 1960 has a Swedish pension of SEK 25 000/month. With a French deduction of 10%, the tax in France is 11% on the remaining amount, which translated into SEK means about SEK 2 475/month
Example 2: A single person has SEK 40 000/month, which is about € 42 000/year. After deduction of 10%, the tax per month is about SEK 10 700/month
Example 3: A married couple at the age of 65 each have a pension of 20 000 kr/month. We also disregard other types of income here. The total tax in France will be about SEK 4 000/month
.