You may want to reconsider your allocation between tax-advantaged and regular broker accounts, if you choose France. The CSM won't apply to pensions or equivalents, including SS, 401K, IRAs, Roths. Just the other passive income, with a 20KE per person deduction (unless eligible for a waiver). Then again, this health care program could change in the future (although the treaty has been stable). And you can execute Roth conversions as well.
Hi, I am seeking information about whether the above (i.e., US pensions and equivalents
not being subject to CSM) has been the experience of US citizens living in France.
As per the link I am inserting below, French social security code indicates that individuals are liable to pay CSM tax only if: 'They did not receive
any retirement pension, annuity or any amount of unemployment benefit during the year in question.'
The same link also indicates that although the wording of the law (above) makes no dictinction as to the country of origin, the French social security agency URSSAF published guidance making a distinction between French pensions and foreign pensions; stating that whilst pensions from the EEA exempt the person, those from outside of the EEA are not automatically exempt. Only those non-Europeans whose health cover is met by their home country would they be exempt: 'Pour les pensions de retraite servies par un Etat hors Union européenne ou la Suisse, la perception de cette pension permettra d’exonérer la personne uniquement si la prise en charge de ses frais de santé, ainsi que ceux des membres de sa famille qui résident avec elles, est supportée définitivement par le régime étranger qui sert la pension de retraite.'
They go on to report that the distinction described above has no basis in law and that: 'In addition, all the circumstantial evidence we have seen suggests that in practice, no distinction is being made between foreign and French pensions.'
https://www.french-property.com/guides/ ... uma/charge
Also, the wording of the law indicates that if a person receives
any amount of pension, they are not subject to CSM. So if this is true, and if it applies to foreign pension equivalents, a person could live off of taxable mutual funds (and not pay capital gains in France) and withdraw even a small amount from a 401k (which would exempt that person from CSM).
I would appreciate learning more about how CSM tax is actually being applied to foreign pensions /pension equivalents ( e.g., 401K/403b accounts) in France. Thanks.