Do savings accounts that do not tax interest exist in France and UK?
Exploring tax-free savings options for French residents with UK connections.
French residents can maximise tax-free savings with Livret A
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Reader Question: Premium Bond winnings and ISAs are tax-free in the UK, but not in France. As a French resident, is there a way of saving without being taxed on interest?
You are correct regarding the different taxation of these kinds of savings.
Different countries have their own forms of tax-free saving, and generally do not recognise other countries’.
As a French resident, however, the good news is that according to the UK-France double tax treaty you should not pay UK tax on savings interest, meaning your income from a Livret A, for example, is not taxable anywhere.
Read more: Is French Livret A account interest taxable in UK?
Other similar accounts, with no French income tax or social charges, include the livret de développement durable et solidaire (LDDS), livret d’épargne populaire (LEP), livret jeune and Plan épargne avenir climat. Note, however, the latter two are for young people and the LEP is for people on lower incomes.
Putting money in an assurance vie is another way to save which can help to limit tax.
Read more: What is the ‘assurance-vie’ our French bank is offering us?
Note that on February 1, 2025, interest rates on a Livret A account will drop to 2.4%, down from 3%.
Read more: Interest on popular ‘Livret A’ French savings accounts to drop to 2.4%
