When most people think of France, they picture the iconic hexagon of mainland Europe—la Métropole, as it’s known domestically. But France’s influence stretches far beyond the continent, across oceans and time zones. From the South Pacific to the Caribbean and the Indian Ocean, France’s overseas territories reflect a complex history of settlement, identity, and governance. Today, these regions are full-fledged parts of the Republic, represented in the French Parliament, and integrated—though sometimes unequally—into France’s tax and legal systems.
In this post, we’ll explore the key overseas territories, give a brief overview of their history, their current status, and highlight their Senate representation following the most recent vote. We’ll also touch on taxation, the euro, and how wealth planning can differ depending on which French territory you’re in.
🗺️ A Quick Primer on the Types of French Overseas Entities
• DROM (Départements et Régions d’Outre-Mer) – Fully integrated as both departments and regions (e.g., Guadeloupe, Réunion, French Guiana).
• COM (Collectivités d’Outre-Mer) – Enjoy more autonomy, with individual statutes (e.g., Saint Barthélemy, Saint Pierre and Miquelon, Wallis and Futuna).
• Sui generis – A special, unique status (e.g., New Caledonia).
• TOM (Territoires d’Outre-Mer) – A designation that no longer applies, but is still sometimes used informally.
🇳🇨 New Caledonia (Nouvelle-Calédonie)
Status: Sui generis collectivity
Currency: CFP franc (not the euro)
History: Annexed by France in 1853, New Caledonia became a penal colony before evolving into a mineral-rich territory with a large indigenous Kanak population.
Current Issues: Tensions remain around independence. A 2021 referendum (boycotted by pro-independence parties) rejected secession.
Senate Representation: Both senators (2023) are affiliated with Les Républicains (LR).
🇷🇪 Réunion
Status: Overseas department and region (DROM)
Currency: Euro (€)
History: Uninhabited until the 17th century, it was settled by the French and became a key stop in colonial trade.
Current Issues: Despite its DROM status, Réunion struggles with high unemployment and cost-of-living disparities.
Senate Representation: Current senators are from Parti Socialiste (PS) and Les Républicains (LR).
🇵🇫 French Polynesia (Polynésie française)
Status: Overseas collectivity (COM)
Currency: CFP franc (XPF)
History: Became a French protectorate in the 19th century. Includes Tahiti, known for its beauty but also for France’s controversial nuclear testing in the 20th century.
Autonomy: Has its own president and parliament; maintains strong ties with France but with local control over many issues.
Senate Representation: One senator is affiliated with Tapura Huiraatira, a local center-right party allied with Renaissance, Macron’s party.
🇬🇫 French Guiana (Guyane)
Status: Overseas department and region (DROM)
Currency: Euro (€)
History: Known for its penal colony at Devil’s Island, it is now home to the Guiana Space Centre.
Current Issues: Poverty, security concerns, and a strong sense of marginalization from mainland France.
Senate Representation: One senator from Gauche Républicaine et Socialiste (GRS).
🇸🇵🇲 Saint Pierre and Miquelon
Status: Overseas collectivity (COM)
Currency: Euro (€)
History: The last remaining piece of New France in North America, these islands off the coast of Newfoundland are culturally close to mainland France.
Economy: Historically tied to fishing; tourism and tax incentives are increasingly relevant.
Senate Representation: Senator affiliated with Renaissance (Macron’s party).
🇼🇫 Wallis and Futuna
Status: Overseas collectivity (COM)
Currency: CFP franc (XPF)
History: Annexed in 1888, it retains a strong traditional leadership structure alongside French institutions.
Culture: Deeply religious and conservative, with strong ties to both Polynesia and France.
Senate Representation: Senator affiliated with Les Républicains (LR).
🇾🇹 Mayotte
Status: Overseas department and region (DROM, since 2011)
Currency: Euro (€)
History: The only Comorian island to vote to remain French in the 1970s.
Current Issues: Legal integration is still ongoing, particularly in family law. Immigration and inequality are pressing challenges.
Senate Representation: Two senators, both affiliated with Les Républicains (LR).
🇬🇵 Guadeloupe
Status: Overseas department and region (DROM)
Currency: Euro (€)
History: A colony since 1635, Guadeloupe has long been a part of France, officially becoming a department in 1946.
Current Issues: Socioeconomic tension, labor strikes, and a push for greater autonomy.
Senate Representation: Includes socialist and center-right senators.
🇲🇶 Martinique
Status: Overseas department and region (DROM)
Currency: Euro (€)
History: Colonized in 1635, Martinique’s culture blends French and Afro-Caribbean heritage.
Current Issues: Economic disparity and a strong push for local identity and recognition.
Senate Representation: Includes Divers Gauche and Renaissance.
🇧🇱 Saint Barthélemy (St Barths)
Status: Overseas collectivity (COM)
Currency: Euro (€)
History: Once a Swedish colony, it was returned to France in 1878.
Tax Benefits: St Barths offers significant tax advantages:
• No income tax for residents (subject to specific conditions).
• Wealth management strategies are often routed through this island due to lighter reporting requirements.
• No VAT, making it attractive for luxury purchases.
These benefits do not apply in mainland France (l’Hexagone), where residents are subject to income tax, social contributions, VAT, and potentially wealth tax (IFI). For high-net-worth individuals, relocating to or investing via St Barths can create advantageous financial structures—though one must respect strict residency requirements to benefit fully.
💶 Currency Use Across the Territories
• Euro (€): Used in all DROMs (Réunion, Mayotte, Guadeloupe, Martinique, French Guiana) and COMs like St Pierre and Miquelon and St Barths.
• CFP Franc (XPF): Used in French Polynesia, Wallis and Futuna, and New Caledonia. This currency is pegged to the euro and backed by the French Treasury.
🧾 Taxation: Overseas vs. Mainland France
• DROMs: Apply French tax law with some regional deductions and credits (especially for investments or new businesses).
• COMs: Have more autonomy in setting tax rules. Some have independent fiscal systems.
• Metropolitan France (l’Hexagone): Fully governed by the French tax code, including:
o Progressive income tax
o Social contributions (CSG/CRDS)
o Wealth tax on real estate
o High VAT (20% standard)
o Tightening rules on foreign asset declarations
☀️ A Republic That Never Sleeps
France’s overseas territories are more than remnants of history—they are living, breathing parts of the Republic, with their own voices in the Senate and their own needs. The legal, economic, and linguistic diversity across these regions is a reminder that France, in many ways, remains a global nation.
The sun may no longer “set” on the French Empire, but it certainly rises and shines across the French Republic—from the Pacific to the Caribbean, from the Indian Ocean to South America.
At FRQCA, we specialize in navigating this complex landscape—whether you need certified translations of a deed from Martinique, or business documents from French Polynesia. If it’s in French, we’re here to help.