Traditionally, some people approaching retirement and considering a permanent move abroad for fine weather and an improved quality of life may have viewed France as an undesirable option, due to the perception of France as a land of very high taxation.

To challenge this, a brief look at the French tax situation facing retirees may paint a more promising picture. To compare the situation in the UK for a moment, there are only 3 levels of tax rates, against France, which has seven. The top rate of tax in France is 49.8%, while in the UK this is 40% - however unless the income of a retired couple exceeds Euro 70,000 they will be better off taking up residence in France.

Be aware that residents of France are liable for tax on their worldwide income, so a pension being drawn in another country would need to be declared in France. France does have a double taxation agreement with a number of other countries, including EU member states and the USA, so that tax paid in one country acts as a tax credit in the other.

It should be stressed that anyone thinking seriously of retiring to France and buying a home would do well to consult with a professional dealing in taxation and property issues beforehand. This should give you sound and up-to-date advice, ensuring the right amount of tax is being paid in the right country and reducing the likelihood of nasty surprises (such as unforeseen expense) in the home-buying process.