Economy Guide in France
Economic overview, job market trends, income levels, and financial landscape for expats
GDP
$2.96T
Total economic output of the country
HDI
0.90
Very high human development
Quality of Life
77/100
Excellent quality of life — among the top worldwide
Purchasing Power
54/100
Moderate purchasing power — around global average
Cost of Living Index
The Cost of Living Index in France is 66.8 (NYC = 100), indicating moderate costs. Groceries (73.7) and restaurant prices (65.6) are also moderate compared to New York City.
Housing Market
The Property Price to Income Ratio is 8.4 years, suggesting a moderate housing market. The Rent Index is 20.6, indicating relatively affordable rental costs with regional variations.
Average Income Levels
With a Purchasing Power Index of 129.9, residents in France have excellent buying power compared to New York City, indicating strong average income levels.
Tax System
France has a progressive income tax system with rates ranging from 0% to 45% for 2024, plus potential high-income surtaxes. The standard VAT rate is 20%, with reduced rates also applied. Property owners pay annual taxes like 'taxe foncière,' and a wealth tax (IFI) applies to real estate assets exceeding €1.3 million.
Business Environment
France is ranked 32nd in the World Bank's Ease of Doing Business Index. The country boasts a dynamic startup ecosystem, ranked 8th worldwide in 2025, with strong government support through initiatives like 'La French Tech'. France is also a leading destination for Foreign Direct Investment in Europe.
Social Security
France offers a comprehensive social security system, including universal healthcare (PUMA) accessible to all legal residents, covering a significant portion of medical expenses. The pension system is robust, with mandatory state and supplementary schemes, though reforms are increasing the retirement age. Unemployment benefits and family allowances provide a strong social safety net.
Banking & Financial Safety
Deposits in France are protected up to €100,000 (approximately USD 108,000, based on a 1.08 EUR/USD exchange rate) per depositor, per institution, under the EU Deposit Guarantee Scheme, managed by the Fonds de Garantie des Dépôts et de Résolution (FGDR). The banking sector is stable and subject to strict oversight by the Prudential Supervision and Resolution Authority (ACPR) and the European Central Bank (ECB).
Deposit Protection: up to $108,000 USD (see sources)More Insights for your Move to France
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