US retirement benefits taxation in FP

2POSTS

7 years ago

Hi, I am looking for information about US retirement benefits/distributions/investments taxation when moving to FP. I am an European citizen with US dual nationality living in California. I speak Italian and French since I worked there for a decade in a previous life. I visited many Polynesian and SoPac countries and islands for many years and keep going back mostly to FP and Tuamotus in the specific whenever I can. I am a sailor and considering to move there in a few years with my sailboat possibly living on her, cruising the South Pacific, but mainly be based off some FP island (a-la-Moitessier...). As an European citizen I hope there would not be any major VISA issues in relocating there, please chime in if the contrary. My retirement income other than partially France sourced will primarily issue from聽 US benefits like Social Security, 401k and other typical US investments. I am looking for US expats/retirees or other people in similar situation and I am interested to understand what are the complications and taxes due once residing聽 in FP for most part of the year. Obviously healthcare is the other big subject I will probably ask about in another post. Everything else I am quite confident I got it as I have some world traveling experience and has been an expat for most of my life...Any link to available rules and regulations are welcome, feel free to message me with any specific personal advice, any cruiser out there? or if you have any question on your turn. Thanks Alex

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alexp69 Member

2POSTS

7 years ago

OK, lots of views but no comment. In the hope again to get confirmation and to document for the silent viewers here's my understanding, please chime in if they are incorrect.

There is no personal income tax per se in French Polynesia. But all income regardless of type (job, retirement) and provenance will be subject to CST at a rate up to 5% depending on levels. Property tax is 10-15% of house rental value that in turn is 2-4% (depending on islands) of 75% of house value....if you do the calculations it turns to be ~50% of a typical US property tax. Once you become resident I believe there is an 8% healthcare tax to be eligible for the french universal healthcare benefits. Not sure how long it takes to become an official resident, few months to few years depending on nationality. In the meantime an international insurance or coverage extension from US insurance is required. After 5 years you can also apply for french citizenship...there is no rule against dual or triple citizenship between France, US and most other countries.

There is no treaty against double taxation between FP and any other country other than France...in fact many countries will consider FP a fiscal paradise and will not let go of their contribuents. This means you still may ower taxes in your country of origin in addition to the FP ones....let's call it the price to live in Paradise ! Note for US citizens...they still anyway own taxes to uncle Sam regardless of where they live in the world...

alec4444 Member

3POSTS

7 years ago

Hey Alex P, wanted to thank you for this.聽 Lots of sounds of crickets in this forum but it's helpful to come across nuggets such as these.聽 Please keep us posted how this worked for you if you make it through!

cncellier Member

15POSTS

last year

@alexp69

if I may, I would consult a tax attorney, it might be worth a consultation馃槈

cncellier Member

15POSTS

last year

@alexp69

Hi,

I know your post is a few years old, but I was wondering if you ever got the info you were looking for. We are French (with dual citizenship French/USA) living in California (San Diego), and are planing on spending 4 months a year in Puna'auia.

Thanks,

Claire

BertEtMel Member

19POSTS

last year

@cncellier

I think you won't be considered as a resident if you stay here 4 months a year (I think it's 6 month or more).

If your not resident, you won't have any social healthcare here, so you shouldn't have to pay CST.

If I were you, I would ask directly DICP (tax department here in Polynesia) via their website :

They answer quickly and precisely.

aimeecroteau New member

5POSTS

11 months ago

@alexp69

Hi Alex,

We are also looking at moving our family and the tax implications. We are currently US/Canadian family living in Portugal. Thank you for your great post. I will let you know if we find out any more information on our end.