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Hello Everyone,

I suppose this may be a question for a tax professional like Bev: What might one expect to pay in income taxes as a tax resident of France on pension income from outside France (US social security, annuities from the US)? A rate that an international banker here in the States mentioned was 8% of your income annually....Currently we reside in the US and are thinking of moving to France soon (EU-citizen with american spouse)
Thank you so much in advance for your help.
 

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Under the US-France tax treaty, you do not pay French income tax on US Social Security retirement benefits. Any IRA and/or 401K plans you hold in the US are also recognized as "state" pensions and thus taxable only by the US. A private annuity or private pension will be subject to French tax (as I understand it) but that would be something you'd have to check with the Fisc to be sure.

The 8% figure is something alternatively referred to as CSG-CRDS or "cotisations" here in France and it is NOT considered an income tax, but rather a flat tax on income otherwise not subject to cotisations (social insurance) deductions at the source. I'm not entirely sure at the moment whether US Social Security is exempt from this tax or not. There has been a recent European court ruling that EU state pensions cannot be charged this tax, but haven't heard whether this extends to US SS. (I suspect it doesn't, but we can always hope...)

The only reason I mention this is that, if you are filing US income taxes (say, on your US SS and/or IRA), the 8% tax you pay will NOT be creditable against your US tax liability.

I wonder if any of our US retiree members here can fill us in on the status of the CRG-CRDS with respect to your US Social Security benefits?
Cheers,
Bev
 
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