More and more French people are planning to retire abroad, be it for climatic, economic or even family reasons. But how to receive your retirement pension when you live outside of France? What are the steps to follow and what is the taxation applied? We take stock of this issue.

The conditions for receiving a pension abroad

It is not mandatory to reside in France to collect the retirement pension. However, certain conditions must be met:

• The beneficiary must have reached the legal retirement age;
• You must have contributed enough years to validate your pension rights;
• The retirement pension must be paid in a country that has signed a social security agreement with France.

If these conditions are met, the retirement pension can be paid abroad without any problem. However, it must be checked on a case-by-case basis whether the country of residence has actually signed an agreement with France.

Steps to follow to collect your pension abroad

To receive your pension abroad, several steps are necessary:

1. Request the liquidation of your pension from the French pension fund;
2. Inform the pension fund of your change of address and your residence abroad;
3. Provide a certificate of life each year to prove that one is still alive and receives the pension.

It is also recommended to find out about the procedures to be carried out in the country of residence, since some local administrations may require specific documents to validate the payment of the pension.

Taking into account the periods worked abroad

For people who have worked abroad, the French system may take part or all of your pension rights into account. There France has agreements with many countries so that pension rights contributed abroad can be transferred. However, each situation must be verified on a case-by-case basis.

Taxation applied to pensions received abroad

Taxation will depend on the country of residence of the retiree and the tax agreements signed between this country and France. Here are some examples:

• Total tax exemption in France: For some countries, retirement pensions are totally exempt from taxes in France and subject to local taxes. This is, in particular, the case in Portugal, Belgium and Switzerland.
• Taxation in France: In other countries, retirement pensions remain taxable in France, even if the retiree lives abroad. This is the case of the United States, the United Kingdom and Spain.

Therefore, it is essential to be well informed about the taxation applicable in the country of residence before retiring abroad.

The consequences of the recent modification of the social security financing law

Law no. 2023-270, of April 14, 2023, on the modification of the financing of social security for 2023, brought some changes in terms of pensions. If these modifications do not call into question the possibility of collecting the pension abroad, they may have consequences on the amount of the pensions or on the legal retirement age.

Receiving your pension abroad is quite possible, under certain conditions. You should inquire about the steps to follow, both with the French pension fund and in the country of residence. Applicable taxes can also vary by country, so it’s important to find out before making a decision.