British retirees living in France are facing unexpected four-figure tax bills on their public sector pensions—despite long-standing rules meant to protect them.
Since 2010, public sector pensions have been exempt from French income and social taxes under the UK-France Double Taxation Convention. Yet, a growing number of retired teachers, police officers, and other public servants report being hit with hefty social security charges for the first time, according to French publication The Connexion.
British retirees receiving a state pension can normally apply for an S1 form, which allows them to access state healthcare in France, funded by the UK government. Early retirees—those who haven’t reached the UK state pension age—aren’t eligible for an S1. However, public sector pensions should historically remain exempt from French taxes, thanks to the Double Taxation Convention.
This year, some retirees say the French government has applied social charges to their public sector pensions for the first time. Authorities have reportedly justified the charges by pointing to the absence of an S1 form.
Andy Pickwick, a former police officer who retired to southern France in 2020, told The Connexion that he and his wife, a retired teaching assistant, challenged the charges but were overruled.
“The tax office said we have to pay because we do not have an S1. I said we don’t need it because they are government pensions, under the Double Taxation Convention’s Article 19. They think we’re not paying for health cover anywhere,” Pickwick explained.
At 60, Pickwick has now created a Facebook group for affected expats, where dozens have shared similar experiences of being suddenly billed for social security contributions.
He added that an accountant had warned him that, having already paid a General Social Contribution, he might be ineligible for an S1 once he reaches retirement age.
“My accountant’s only advice was to take out private health cover. I’m seriously considering selling our house and going back,” he said.
French tax authorities reportedly classify government pensions paid before retirement age as “pre-retirement benefits,” putting them outside the usual double taxation protections.
Other expats are reporting similar experiences after their S1 forms expired. Mark Taylor, another retired police officer, said he faced a €3,500 (£3,020) bill in 2023. While he successfully appealed, he warned that not all retirees have been so fortunate. Photo by Thomas Bjørkan, Wikimedia commons.