An expat can borrow from a private individual, often a relative still in France, provided the currency, governing law and schedule are fixed in writing, the money moves by traceable international bank transfer and each party's tax residence is checked.
Why banks hesitate with expats
A French citizen settled in Dubai, Montreal or Singapore earns income in a foreign currency, often under a local contract. French banks struggle to assess that income and to recover a debt outside France, hence frequent refusals or tougher conditions.
The relative back in France as lender
The most common arrangement is still a parent or friend living in France who funds a rental deposit, a car or a move abroad. This family loan deserves to be written down like any other, even between people who trust each other.
Choosing the currency and planning for exchange rates
A loan granted in euros and repaid from a salary in Canadian dollars or dirhams exposes the borrower to currency risk. The contract should specify the repayment currency and, where needed, the conversion rate applied at each instalment.
Which law governs the contract?
When lender and borrower live in two countries, the contract can name the governing law and the competent court. Our peer-to-peer credit agreement template is a good starting point, to be reviewed by a notary or lawyer familiar with the country of residence.
International transfer, the only safe method
Funds should move by transfer between accounts in both parties' names, with an explicit reference such as "loan under contract dated". For a large amount, the bank may ask where the money comes from under anti-money-laundering rules.
The fake excuse of a blocked transfer
Scammers exploit distance: a transfer "blocked by the central bank", "customs fees" or an "anti-laundering tax" to pay before receipt. This scenario, described in our page on the international transfer loan scam, particularly targets expats.
Tax residence and formulaire 2062
In France, a peer-to-peer loan above 5,000 € is declared by the borrower with their income tax return on formulaire 2062, the French form for declaring loans. A non-resident expat should check their position with the tax office for non-resident individuals.
Interest received by the lender
A lender domiciled in France declares the interest received, taxed as investment income. If the lender also lives abroad, a bilateral tax treaty may share out the taxation; our page on private loans and tax sums up the principles.
Registering the deed to give it a certain date
Optional registration of the contract with the French tax authorities costs a fixed duty of 125 €. It gives the agreement a legally certain date, which helps if repayment becomes disputed while one of the parties lives outside France.
Signing remotely without being caught out
Expats often sign by scanned post or electronic signature. Be wary of an unknown lender who sends a contract on the letterhead of a supposed European bank and asks for a passport copy, proof of address and file-opening fees.
Moving back to France or leaving a country
Changing country during the loan alters the currency of income, the bank and sometimes the tax residence. A clause requiring the lender to be informed, plus an option for early repayment, avoids a great deal of family tension.
Where to find reliable advice abroad
The French consulate and the register of French nationals living abroad can point you to French-speaking lawyers. In France, the ABE Infoservice platform and the AMF provide information on authorised intermediaries and crowdfunding platforms.
Setting up a private loan between France and another country
- Agree the amount, the payout currency and the repayment currency, taking banks' exchange fees into account.
- Draft a contract stating identities, addresses in each country, governing law, schedule and an early repayment clause.
- Sign both copies, in original by post or by reliable electronic signature, and have each party keep one.
- Make an international transfer from the lender's account to the borrower's, quoting the contract reference.
- Check the formulaire 2062 obligation according to the borrower's tax residence, and how interest is taxed.
- Schedule regular repayment transfers and file the transfer notices for the whole life of the loan.
Fees for a peer-to-peer loan involving an expat
| Item | Indicative amount | Note |
|---|---|---|
| Interest between individuals | Free to set, below the French usury rate | An interest-free family loan is still possible |
| International transfer fees | Depends on the bank | Compare commission and exchange margin |
| Registering the contract in France | 125 € (indicative) | Optional, fixed duty |
| Lawyer or notary advice | Varies | Recommended when two national laws overlap |
| "Release" or customs fees | Total loss | Scam: no real loan requires them |
Useful documents for a loan to an expat
- Passport or identity card of both parties
- Local employment contract or employer's certificate abroad
- Proof of address in the country of residence
- Loan agreement specifying currency and governing law
- International bank details (IBAN, BIC or equivalent)
- Formulaire 2062 if the borrower is concerned
- International transfer notice and repayment schedule
Mistakes and scam warning signs for French nationals abroad
- Paying a "transfer tax" or "customs fees" to release a transfer announced by a lender met online.
- Accepting repayment in cash handed to an intermediary or through an informal transfer, leaving no bank trail.
- Not fixing the repayment currency, then discovering a large gap after a sharp move in the exchange rate.
- Ignoring the question of tax residence and forgetting to declare the loan or the interest in France.
- Handing your passport and residence visa to an unverified lender, risking identity theft in two countries.
Expats' questions about peer-to-peer loans
Does a non-resident expat have to file formulaire 2062?
The obligation applies to taxpayers who file their income in France. An expat who no longer has French tax residence should check with the tax office for non-residents, because the rules also depend on any French-source income and on the tax treaty.
Can you lend in euros and be repaid in dollars?
Yes, if the contract says so clearly: the currency of each payment, how the exchange rate is calculated and who bears the bank charges. Without this clause, disagreement over the amount actually owed becomes common when rates move sharply.
Which court handles non-payment abroad?
The one named in the contract if the clause is valid; otherwise European or international jurisdiction rules apply. Enforcing a French judgment outside the European Union can take a long time, so a local lawyer remains essential.
Do French lending platforms accept expats?
Authorised crowdfunding platforms mainly finance businesses and apply their own residence conditions. Check their status on the AMF website; an unlisted site promising a fast international personal loan should be treated as suspicious.