Retiring in Paris, France in 2022

Retiring in Paris, France in 2022

If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).

Introduction

Retiring in Paris, dubbed the City of Light, should be a cinch if your concept of the “perfect retirement” is to be surrounded by romance, elegance, culture, and all that is lovely and polished.  It is just impossible to get bored here because almost every day brings with it a brand-new museum exhibit, a new restaurant or store opening, or some intriguing new nook to explore.

Here, almost any passion can be sated. You may find your place in Paris whether you’re a history or art enthusiast, a wine connoisseur, a fashionista, a passionate foodie, or someone who just likes to people-watch from a café terrace.

Although it might be a bit of a stretch to expect for the city to actually perform some magic a la Midnight in Paris film, you could expect the place to be timeless yet constantly changing – doesn’t that seem magical?

Who Can Retire in Paris?

A visa is not necessary for anyone who is a citizen of Switzerland, the European Union (EU), or the European Economic Area (EEA). However, in order to enter France, non-EU nationals must first apply for a visa. You may quickly determine whether you require a visa to enter France by using the French government’s visa web page.

You must apply for a long-stay visa (visa de long séjour) and a residency permit within two to three months of arriving in France (depending on the type of visa issued) if you’re coming from outside the EU, EEA, or Schengen region. This will permit you to stay in the nation for a maximum period of one year.

You can choose to submit an application for a visitor visa when retiring in Paris. You must demonstrate that you have private health insurance and that you earn enough money from a pension, investments, savings, or other sources to support yourself in France in order to obtain a guest visa. You must also submit a declaration saying that you won’t engage in any paid labor while in France.

You must provide proof of income or assets at least equal to the French minimum wage in order to obtain a visa from the France visa service. The French minimum wage has risen by 2.01% this August, according to a Bloomberg Tax report. The minimum gross wage is now at 11.07 euros per hour, Bloomberg said.

After a year, you are eligible to switch from your visiting visa to a visitor’s residency permit. You may then submit a request for permanent residence after five years.

Retiring in Paris: Climate

Temperatures in Paris can fluctuate considerably throughout the course of a day, making the weather there at times erratic. Yet intense weather conditions are rare. The summers are typically mild and reach mid-to-high 60-degree Fahrenheit on a daily basis, though it can hit 80 degrees Fahrenheit on occasion. Winters are gloomy and soggy; the temperature rarely falls below freezing and is typically below 50 degrees Fahrenheit. Autumn is the best time to visit Paris since spring, a season beloved by romantics, is frequently wet and cold. Typically, September and October feature a lot of sun and just a bit of rain. If you’re retiring in Paris, wearing layers is advisable.

Retiring in Paris: Lifestyle and Cost of Living

It is well known that the French are passionate about seeking pleasure and rest. The pace of life is still more relaxed in most major cities, despite the fact that Paris is a high-energy city. Even on workdays, lunchtimes are leisurely gatherings where people enjoy the food and each other’s company. The city’s attractions and the adjacent countryside are frequently enjoyed on the weekends. Locals always use the five weeks of annual leave that are legally bestowed to them. Retiring in Paris will also allow you to adopt these casual rhythms.

As mentioned above, Paris offers a wealth of fun and fascinating diversions. What makes this even more enjoyable is that there’s a large English-speaking community with whom you can enjoy these activities. There is no shortage of Anglophone meet-up groups for varied interests, such as wine-tasting, hiking, and traveling.

Speaking of travel, Paris is a fantastic starting point for exploring not only France but Western Europe as well. The Charles de Gaulle Airport in Paris serves as a key hub for international travel, and in less than 90 minutes, you can fly to a number of significant destinations, including London, Madrid, Florence, Berlin, Geneva, and Lisbon. If flying is not your thing, you can take the TGV, France’s high-speed train. In three hours, you could be relaxing on a beach in the warm south of France, and in six, you could be enjoying tapas in Barcelona.

The cost of retiring in Paris is not as high as its reputation might suggest. Paris was listed as the 35th most expensive city in the world for expats by the 2022 Cost of Living City Ranking by asset management firm Mercer. For comparison, Hong Kong comes in at number 1, London at number 15, and New York at number 7.

Besides, there are so many free events and things to do in Paris. All of the city’s museums are free on the first Sunday of each month. Many well-known museums and attractions, including Notre Dame Cathedral, Sacre Coeur, and Musée Carnavalet, are free all year round. Of course, Paris itself is the best museum in the area. It’s fantastic and cost-free to just wander around and take in the beauty of the city and significant locations in French history.

While there are expensive Michelin-starred restaurants, eating out in the French capital isn’t that expensive overall. A meal at an inexpensive restaurant is estimated to cost 15 euros while a mid-range restaurant can charge 60 euros for a three-course meal for two, according to global cost of living data aggregator Numbeo. The type of neighborhood and exclusivity of the venue greatly affect the prices. 

In terms of real estate, there is no doubt that Parisian real estate is costly so mull your options if you’re retiring in Paris. The cost per square meter for buying an apartment within the city center is at 11,966 euros, while that outside of the area is at 8,967.5 euros.

Rentals are also pricey but are competitive with many major American cities. Rent for one-bedroom apartments inside and outside Paris’ city center cost 1,283 euros and 940 euros on average per month, respectively. Rent prices in Paris are 59.9% lower than in New York City and 44% less than in Los Angeles, Calif.                 

The overall monthly cost of living in Paris for one person can hit 950 euros on average, while it can cost about 3,405 euros for a family of four, both excluding rent.

So as to retain the same level of living as you can with $9,000 in New York, you must have about $5,088 if you’re retiring in Paris.

The good news is that relatively few parts of Paris are seen as unsafe or unattractive in any other way. Furthermore, it’s rather quick and simple to get to practically any central place, even if you reside in the city’s outskirts.

Retiring in Paris: Transportation

You won’t need to deal with owning a car as it is a large metropolis. There is a sophisticated tramway, a sizable bus network, and a comprehensive metro system in Paris that connect to every part of the city and its suburbs. A monthly pass for about 75 euros allows you unlimited use of all forms of public transit. The amount of the discount available to seniors depends on their income.

Retiring in Paris: Healthcare

The medical system in Paris is first-rate. Thirty-nine public hospitals plus a number of private ones are located in the city. English-speaking medical professionals are readily available in both the public and private sectors, but especially at the Hertford British Hospital and the American Hospital of Paris – two exclusive private hospitals in the Paris suburbs. The majority of hospitals have access to some of Europe’s top medical professionals as well as the most up-to-date tools and technology, so medical services won’t be a concern when you’re retiring in Paris.

If Americans have been residing legally in France for three consecutive months and can demonstrate their desire to establish themselves as legal tax residents of France, intending to spend a minimum of 183 days there per annum, they may be able to qualify for the French public healthcare system. If you are a member of the national system, the amount you pay is about 8% of your salary above a specified amount.

To live in France legally, you must have private insurance if you are not enrolled in the government-run healthcare system. Some expats opt to enroll in a complete hospitalization plan and then pay out-of-pocket for prescription drugs and doctor visits. It can cost as little as $42 to see a general practitioner.

Retiring in Paris: International Pension Transfer

You might be eligible to transfer your pension to France if a bilateral deal is in place between France and your native country, such as the one that applies to EU citizens as a whole. The US has an agreement with France, while UK expats can transfer their pension through a Qualifying Recognised Overseas Pension Scheme (QROPS). if you’re retiring in Paris and are a non-EU national, consulting the French consulate in your country is best to examine certain applicable regulations.

Retiring in Paris: Taxes on Retirement

if you are retiring in Paris, you are required to pay tax on your worldwide income as soon as you are deemed a tax resident in France. The French government will require you to declare your financial accounts, and you risk paying a fine if you don’t comply.

Even if you don’t make any income, you must complete an annual tax declaration. France has agreements with a large number of its European neighbors as well as other nations, so if you’re retiring in Paris you might no longer have to pay taxes twice thanks to these arrangements.

Property holdings worth more than 1.3 million euros are subject to a wealth tax in France. There are certain exceptions, though, so bear that in mind. For instance, if you have returned to France after living abroad for five years, only your domestic assets are subject to the wealth tax or if you have an overseas tax residency.

Retiring in Paris: Bottom Line

Never lose sight of the fact that there is no such thing as perfect whether you’re retiring in Paris or some other location. Be aware of the benefits and drawbacks of various options for residence. You should eventually take into account your own wants and needs when deciding where to stay, depending on your level of tolerance, your fundamental necessities, and what you can live with and without. Consider both the pros and cons of a potential site before choosing. Take your time.

Pained by financial indecision? Want to invest with Adam?

Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.