Currently in my 20s working as a software engineer for a U.S. based company. I have always wanted to work in France, primarily because I want to experience a new culture & way of life (And become more fluent in french).
The one thing holding me back is the salary differences between French and U.S. companies: I currently make $100k+ a year, but offers from France-based companies have been around €55k.
This salary is enough to live well in France, but I feel like I'd be saving a lot less money if I moved abroad. If I ever wanted to move back to the U.S. and buy a home, I'd be in a much worse position than if I had just stayed in the first place. It almost feels like I'd be committing myself to Europe if I wanted to have a good retirement.
For those who may have made a similar move, is the experience worth the potential negative financial consequences?
You should consider all these perks. On the other hand, you learn languages and have a base to explore France, Germany and maybe Europe, in case if you like traveling ;)
You can buy a home in the United States and rent it out while you're in a foreign country and use it for yourself if/when you come back. You don't even have to set foot in the US. Buy in a suburb near a university town. You won't be making much of a profit when mortgage and property tax are factored in, but enough to pay for property taxes. You just have to be discerning about who you rent to. This worked for a university professor I know of while he lived in Israel. You should check with state and local laws regarding tenancy and renting to make sure you don't afoul of any odd esoteric bylaw or something of that nature, especially if you're trying take advantage of any tax exemptions.
If you're making 100k per year, you're starting to approach the limit of the Foreign Tax Credit. Keep this in mind when negotiating increases in pay in the future. Other ways you might end up double or even triple-taxed (in case you weren't aware, the US taxes citizens and residents on worldwide income).
America and France have a tax treaty which also list any obligations and conditions regarding Social Security and or France's mandatory pension fund. Research it for any important details or exemptions you might qualify for.
Many countries will require you to have a bank account in their country to pay you. In accordance with FATCA, banks in foreign countries have a special obligation to document and report the holding of Americans overseas. Because of the outsized paperwork and threats to bank secrecy, for a period of time many banks refused to take American clients and dumped many existing ones. That's may still be the case for a number of banks today. You should research FATCA-friendly banks.
1. We are producing an awful lot of good engineers (thanks to Napoleon),
2. Investors are much more risk averse than in the US in general, so there is much less money to grab.
3. Cost of living is a lot cheaper
What you may consider is working from France for a US based company (I am doing this). You will pay what will look like an awful amount of taxes. But these taxes are mostly health insurance, and if you factor all in it'd be cheaper for your company to employ you freelance, and you'd get more money after tax + health insurance than if you'd stayed in the US + your lifestyle would be better than NY/SF.
Setting up the self employment thing in France is a huge pain in the ass, especially if you're paid in dollars. But if you pay an accountant, it'll be fine.
If you want to experience new cultures, just do it now, or you'll regret it later. France is a beautiful and fun country to live in. Don't let your career / retirement fears get in the way.
Once you have that, try France (and Europe in general) as a digital nomad first. It’s pretty easy to jump from the Schengen Area to Morocco, the Balkans, Turkey, etc. for three months at a time. You could also look for digital nomad-centric visas, which are becoming a thing. I believe Portugal has one, other countries no doubt have options too.
On the up side, a lot of things are much cheaper or free (medical fees, internet, life in general except maybe the housing, depending where in the US and in France).
But yes, for your income bracket, you're likely to be worst off.
Keep looking, because salaries in tech are wildly variable, literally 25k to 100k+.
Keep in mind, high salaries are likely to be in Paris, but life their is expensive, especially housing.
And finally, it's your choice. Money is not everything in life, and since you'll be confortable either way, you can choose to gain less for an experience you want to live. Only you can answer if it's worth it or not ;)
There's also the third option of making a European salary then buying a mansion on some Indonesian island.
I make more than I did in Australia.