7. Social Security Contributions in France

1. 7.1. Basic Rules of French Social Security
   7.2. Employers and Employees in France
   7.3. Self-Employed
   7.4. Retired Persons
   7.5. Early Retirees
   7.6. Social Charges (CSG/CRDS)

7.5. Early Retirees

If you are an early retiree to France you will not be liable for the full gamut of social security contributions on your early retirement pension, although you will have some liability.

The position is a complicated one.

You will most certainly pay the specific social charges on investment and rental income, as well as capital gains.

Unless you have a government service pension taxed in the UK, and/or you are covered by an E106(S1) for health, you will also be liable for the social charges CSG/CRDS on your early retirement pension.

However, most expats seem to escape payment of most of this charge on their pension due to a loophole in the adminstration of the tax and social security system. We discuss this issue more in the next page on the social charges.

Once your E106/S1 health cover ceases, you can make application to join the health system, for which you will pay health insurance contributions of 8% of your income above a mimimum threshold.

In theory, you should also become liable for the social charges, but as we say, many early retirees escape payment of most of these charges due to an administrative loophole (which may be closing).

If you are not successful in gaining entry to the health system, and you are obliged to take out private health insurance, you are not liable for any social charges on your early retirement pension income.

At the expiry of 5 years legal residence you can automatically join the French health system, for which you will be liable for the health insurance contribution and social charges on your early retirement pension and other income.

You can read more on this issue in our guide to the French Health System.