Retiring in the Cocos (Keeling) Islands: Stay, French Pension, Taxation and Retiree Health

The entry rules are those of Australia. France Diplomatie indicates that holders of a French passport need an eVisitor electronic authorisation for a stay of 3 months at most, or a visa. For a tourist stay of more than 3 months, it recommends the visitor visa (subclass 600). Its page describes no visa category specific to retirees and does not mention the Cocos Islands: a plan for lasting residence is prepared with the Australian Department of Home Affairs, whose website lists the visas that allow you to live in Australia, and with a lawyer or an immigration specialist agent.

France Diplomatie also specifies that a seriously ill person who wishes to settle in Australia may be refused entry if they lack sufficient resources to cover their care. On an island with no hospital, this condition weighs even more in the choice of destination. The page retiring in Australia details the residence routes on the mainland, and the page living in the Cocos (Keeling) Islands presents life on the island.

No official source read publishes a rent or a price index specific to the Cocos Islands: the economic benchmarks block of this page reproduces the national indicators available. The Shire specifies that West Island houses the airport, the government offices and most of the housing for government employees and its contractors, and that Home Island is the home of the Cocos Malay community. Its page on land leases is flagged as under review: the arrangements for access to housing or land for a retiree not tied to any employer should be confirmed with the Shire before any project.

Two factors weigh on this choice. The Shire indicates that the only passenger link is an air service via Christmas Island and Perth, of limited frequency. And the territory has two health centres, no hospital, and not even a doctor every day: a retiree on regular treatment or with a chronic condition first assesses the care on offer with their doctor. To compare with places of residence on the mainland, see the page retiring in Australia.

France Diplomatie indicates that there is no bilateral agreement between France and Australia in the field of social cover, and Australia does not appear in the list of countries linked to France by an agreement (CLEISS, the French centre for European and international social security liaison). For a country with no agreement, CLEISS specifies that pension rights are examined separately by each country: insurance periods are not aggregated, and contributions paid into a local scheme do not automatically give entitlement to a pension payable in France. The retiree notifies their pension funds and their health insurance fund of their departure (ameli).

On the Australian side, CLEISS describes a non-contributory Age Pension, funded by taxation: the qualifying age is 67, and you must have resided in Australia for a continuous period of 10 years, or 10 years in total in separate periods of which at least 5 are consecutive. A retiree who settles at the end of their career therefore does not meet the residence conditions; they live on their French rights, their savings and any private annuities. CLEISS also reminds us that the retirement guarantee of a private scheme (superannuation) can be drawn from age 60, for people who have worked in Australia.

The tax convention between France and Australia was signed in Paris on 20 June 2006 and has been in force since 1 June 2009 (BOFiP, the French tax administration’s official guidance). Its article 3 defines Australia in the geographical sense, excluding external territories, with the exception of six, including the territory of the Cocos (Keeling) Islands (Légifrance): it therefore applies to the Cocos Islands.

• Residence (article 4): a person is a resident of the state where they have a permanent home; if they have one in each state, the centre of vital interests decides, then nationality.
• Pensions and annuities (article 17): they are taxable only in the beneficiary’s state of residence, subject to paragraph 2 of article 18, which deals with pensions paid for services rendered to a state. A retiree resident in the Cocos Islands is therefore taxed in Australia on a private pension of French source, and a retiree who remains resident in France is taxed in France.
• Elimination of double taxation (article 23): a resident of France obtains a tax credit for Australian tax, capped at the French tax corresponding to that income, with an effective rate calculation.

On the French side, if tax residence is no longer established in France, the retiree pays neither CSG, nor CRDS, nor Casa, and a health insurance contribution is withheld from their pensions as long as they remain attached to a French scheme (CLEISS). Australian tax scales change every year and can be consulted on the ATO website, which also sets out the rules of Australian tax residence and any benefits linked to a remote zone. Tax resident status should be validated with the French tax administration (impots.gouv.fr) and the ATO before departure.

Assurance Maladie (French health insurance) specifies that a retiree living outside the European Union, in a country with no agreement, is no longer covered by the French scheme for their healthcare costs on site: form S1 does not exist for Australia. Two routes are offered, voluntary CFE membership, open to French nationals, or private insurance. The CFE retirees’ plan is for holders of a pension from the French basic scheme with no professional activity; it has no health questionnaire, reimburses care abroad at a rate or flat amount specific to the country of care, and the price is given on quotation. If membership takes place before departure or within three months of settling, cover is immediate; otherwise, a waiting period applies (cfe.fr). See the guide retiree health insurance abroad and the page retirement insurance abroad.

During a temporary stay in France, a pensioner of the general scheme registers with the Cnarefe: they must show at least 15 years of contributions to French compulsory schemes and be in a regular situation with regard to the residence of foreign nationals in France; hospital stays of more than one month require prior agreement from the CPAM (local health insurance office). Their accompanying spouse is not covered and takes private insurance or the CFE. For care on the island, the page healthcare system in the Cocos (Keeling) Islands presents the health centres and evacuation to Perth, and the page healthcare reimbursement details each situation. Medicare remains reserved for citizens, permanent residents (those of the Cocos Islands included, according to CLEISS) and certain temporary visas.

The Shire describes a subtropical climate, with average maximum temperatures ranging from about 28 °C in August to about 30 °C in February and March, and high relative humidity. The islands are affected by cyclonic conditions but are rarely on the direct path of a cyclone. The coastal hazard risk management plan published by the Australian government (CHRMAP) is presented as a high-level strategic framework, and detailed studies remain to be carried out on coastal processes and flooding: it is useful to read it before choosing housing.

Beyond the climate, the choice of retiring on the island comes down to three concrete criteria: distance from specialist care, flight frequency and the ability to find lasting housing. A trial stay of a few weeks, with an assistance contract covering evacuation, makes it possible to test them before a long-term commitment. To compare suitable cover, see health insurance in the Cocos (Keeling) Islands.