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