EXPATRIATE RETIREES IN THE CROSSHAIRS

LREM MP Sacha Houlié denounces unequal treatment between retirees living in France and those living abroad who have been exempted from the CSG hike....

Go and live in the sun, gain in purchasing power and enjoy a peaceful retirement. Many French people have chosen to spend their golden years abroad, in places like Morocco or Portugal. It's a different way of life, one that sometimes has its tax advantages, but perhaps not for much longer!

A real inequality!

According to Les Echos, majority MP Sacha Houlié would like to see them contribute. He points to "a real inequality between pensioners in France who have suffered a CSG hike, which we are taking responsibility for, and those who have not, who are not tax residents". "Once we've decided to make everyone contribute, then everyone must contribute. It's a question of solidarity and fairness", says the elected representative from Vienne...

In a memo sent to the Elysée Palace and Bercy, he argues for higher contributions for retirees who go into tax exile.

Today, French nationals living abroad are not subject to CSG on their pensions. Unlike those living in France, who have seen an increase in this contribution of 1.7%.

Withholding tax

As Les Echos points out. A December 2017 decree indicated that this increase was to be passed on to their health contributions, but it was suspended as it would have affected all pensioners. Regardless of their income. Without tax data, it's impossible to exempt small pensions...

For Sacha Houlié, everything changes with introduction of withholding tax. The French administration will be able to "know the amount of remuneration, salaries and pensions received, and introduce a threshold triggering an increase in contributions".

Small pensions exempted

The MP would even be in favor of a higher increase in countries where tax regimes are advantageous, such as Portugal... This is yet another source of criticism of the government, which is accused of making pensioners pay.

But the LREM deputy defends himself: "We avoid touching the Algerian worker who receives a pension of 800 or 900 euros after a lifetime of work in France," he explains... "On the other hand, someone who has had a good career in France with a good substitute income will contribute."

The proposal is far from unanimous within the majority... The LREM MP for the French abroad, Anne Genetet, has submitted a report to Edouard Philippe on mobility. According to her, "wanting to apply the same CSG rate to retirees in France and abroad makes no sense. When you go abroad, you contribute to a protection system that may have other disadvantages."