Why France Is One of the Best Places for Americans to Retire

When Americans dream about retirement in Europe, France often tops the list for its scenery, culture, and cuisine. But what many don’t realize is that France also offers surprisingly favorable tax treatment for U.S. retirees - especially under the U.S.–France tax treaty.

If you’re collecting Social Security, dividends, or income from a U.S. retirement account, you may find that living in France can be far more financially efficient than you expected.

🇫🇷 The Tax Treaty Advantage

France and the United States have one of the most comprehensive tax treaties in the world. It’s designed to avoid double taxation and ensure income isn’t taxed twice - once in each country.

For retirees, this treaty provides key benefits that make France uniquely appealing:

U.S. retirement income is taxable only in the United States, not in France.
Dividends and capital gains from American investments (like U.S. stocks or ETFs) are not taxed in France.
Social Security benefits are likewise taxed only by the U.S.

That means your IRA, 401(k), pension, dividends, and stock portfolio can continue to grow and pay out - while you enjoy your morning espresso on the Côte d’Azur.

💡 In practical terms: A retiree in Nice can live on U.S. retirement income and investment earnings while paying minimal French taxes - often just local property taxes and standard VAT on purchases.

💶 What Is Taxed in France

If you have income generated inside France - for example, rental income from a French property or consulting work done locally - that would fall under French taxation.

But for most retirees whose income streams remain in the U.S., France doesn’t tax it again. Your French tax return simply reports the amounts for informational purposes, with the treaty ensuring exemptions or credits.

Additionally:

France does not tax foreign-held assets for wealth tax purposes unless your total worldwide assets exceed €1.3 million (and even then, the calculation is favorable for retirees).
Inheritance tax applies only to assets located in France for non-residents.

🏥 Health Care and Residency

France’s healthcare system is world-renowned - ranked among the best globally.
As a legal resident (via a long-stay visa or retirement visa), you can join the French national health system (PUMA), often at a modest cost relative to private U.S. insurance.

Typical contributions are around 8% of income after an exclusion threshold, and the care quality is exceptional. Many retirees also add private “mutuelle” insurance for full coverage.

🩺 Imagine paying less for world-class healthcare than a typical U.S. Medicare supplemental plan - and having specialists available within days, not months.

🌴 Lifestyle and Cost of Living

While Paris has its allure, many American retirees gravitate toward the Riviera, Provence, or southwest France, where winters are mild and fresh produce is abundant.

A one-bedroom apartment in Nice city center can cost between €300,000–€500,000, depending on view and proximity to the sea.
Monthly expenses - including groceries, utilities, healthcare, and leisure - often come in 30–40% lower than in coastal California or the Northeast U.S.
Add the Mediterranean pace of life, efficien