Moving to France but leaving your money where it is?

I am going to start by asking you to imagine this scenario: A couple moves from Paris to West London, to be near their son, who has settled there, got married and has several children. They move in next door to you. In conversation, they tell you that they keep all their French investments exactly as they are, their assurance vie, their French savings structures, everything. A French adviser comes over once a year to review things, entirely in accordance with French rules.

Pause for a moment and consider how that would feel.

Yet this is exactly what many people do when they move to France, often without realising it. 

Most people who move to France do exactly the same thing with their money, failing to adapt to changes in their circumstances.

They keep their existing portfolios, savings structures, and investment plans from back home and assume everything will carry on as before. It feels sensible, low effort, and safe.

In reality, it often is not.

France does not recognise where your money came from or how it was originally structured. It applies its own tax and inheritance rules, and those rules can quietly turn a perfectly good investment strategy into an inefficient one.

Many people find themselves in this position for the first time. A property sale or pension may have created a level of capital they have never had to manage before. That is entirely normal.

But it also means the rules have changed, whether you realise it or not.

France changes the rules of the game

France is not simply a variation of your home country. It is a different system with different priorities.

Many countries offer tax-efficient wrappers or incentives that shape how people invest. However, these are rarely transferable. What works well in one country often loses its advantage when you become a tax resident in another.

This does not mean you need to do anything complicated. In many cases, it simply means holding your investments in a way that suits the country you now live in.

This is why the assurance vie plays such a central role.

Understanding an investment structure

The assurance vie is not an investment in itself. It is the structure that holds your investments.

A simple way to think about it is this.

It is like a garage and a car. The garage protects what is inside it and determines how it is treated over time, but it does not determine how fast the car goes.

In the same way, asking how an assurance vie will perform is like asking for the 0-to-60 of a garage. The performance comes from the investments inside it, not the structure itself.

Why doing nothing can be expensive

In many countries, inheritance planning is something people deal with later. In France, it is part of the system from the outset.

French law protects children as reserved heirs. A portion of your estate is automatically allocated to them. Your freedom to distribute your assets is more limited than many expect.

This is where structure becomes particularly useful.

An assurance vie sits largely outside the estate for inheritance purposes, allowing you to choose your beneficiaries more freely. It can also provide significant tax advantages, with each beneficiary able to receive up to €152,500 tax-free on premiums paid before age 70, and favourable rates thereafter.

If your investments are not aligned with your intentions, the system will not adapt. It will simply apply the rules.

France taxes worldwide income. Interest, dividends, and capital gains are all assessed under French rules, regardless of where the assets are held.

What was tax efficient in your home country can become inefficient in France, sometimes without you realising it.

Most of these issues are not the result of poor decisions, but simply of not realising that the rules have changed.

Cross-border reality

For many international residents, there is an added layer to consider.

If you have ties to two countries, both systems may come into play. Tax treaties help prevent double taxation, but they do not simplify everything.

Inheritance is a good example. Different countries rely on different concepts, such as domicile, residency, or asset location. The interaction between these systems can produce unexpected results.

This is where coordination becomes important.

A more practical approach

Investment culture varies from country to country. In some places, investors are encouraged to take more risk. In others, capital preservation is prioritised.

France can sometimes lean towards caution, and costs are not always as competitive as they should be. This can lead to portfolios that are both overly conservative and expensive.

That does not mean you have to accept mediocre outcomes. There are options that provide superior capital protection, multiple currency options, and almost unlimited investment options. It also makes it significantly simpler when people want to leave France and return home or move on.

Most people in this situation are not trying to build something complicated. They simply want their money to be organised properly, to grow over time, and to pass to the right people when the time comes.

With the right structure, all this is entirely achievable.

Get professional guidance tailored to you

Leaving your money where it is might feel like the simplest option when you move to France.

But in many cases, it just means relying on a system that plays by different rules. Getting this right does not require complexity. It requires clarity. 

With a clear understanding of how tax, investment, and inheritance fit together, it becomes much easier to make confident decisions and avoid costly surprises later on.

Because in France, how you invest matters just as much as what you invest in.

For those unsure whether their current arrangements are still suitable, taking advice early can make a real difference. Kentingtons specialises in helping international residents structure their investments efficiently in France, taking into account both tax and inheritance considerations. More information can be found at www.kentingtons.com.