US pensions and transferring money abroad: the rules

Moving money as a US citizen relocating to France is complex and highly regulated – exchange rates, banking access, tax exposure and reporting obligations all intersect. While our guide provides a preliminary overview, it is essential and the responsibility of the individual to take specialist advice in these areas and plan accordingly in order to prevent costly mistakes and ensure a smoother transition to permanent life in France.

See also chapter 10 on Banking in France for more information, including tax and reporting obligations for US citizens.

Transferring money via your US bank

If you are a US national in France, you can transfer funds directly from a US bank account, but the process differs from a domestic US payment and requires planning – broadly speaking, it will encompass fees and less favorable exchange rates. 

When buying property in France, most payments are made by bank transfer to the notaire’s client account. Your notaire will provide an IBAN (International Bank Account Number) and BIC (Bank Identifier Code, sometimes called a SWIFT code), which your US bank uses to send the money via an international transfer, usually over the SWIFT network. Note too that international transfers can take two to five working days, and French notaires usually require cleared funds several days before completion – late arrival can delay a sale.

Exchange rate is an area of consideration. Property transactions often involve large sums and long timescales between signing the preliminary contract (compromis de vente) and completion. If the dollar weakens against the euro during that period, the final cost in dollars can rise. Some buyers mitigate this by using foreign exchange specialists, as these can offer better rates and tools such as forward contracts to lock in an exchange rate.

US banks may also ask for additional information due to anti-money-laundering rules, including proof of the property purchase and source of funds. Large transfers can trigger compliance checks, so informing your bank in advance is advisable.

Beyond large single sums, there may be a multitude of reasons for the need to move money, from buying a car or refurbishing a home, paying utility bills, or supporting a child studying abroad. Moving money itself is not taxable (there is no French tax on bringing money into France), but for a property purchase in particular clear documentation is essential. 

A word of warning – treat cash machines and contactless payments with caution

If you use your US cash or credit cards in France for ATMs or payment systems, do so in the knowledge that banks typically apply poor exchange rates, often adding a foreign exchange margin of 2–3% on top of the market rate. Many also charge fixed fees per transaction, which quickly add up. Note too that there are also daily limits, which will depend on the amount set by your bank.